SHALL BE FULLY PAID
AND SATISFIED, AT THE SOLE ELECTION OF LENDER, BE SEVERED INTO TWO OR MORE NOTES
AND TWO OR MORE SECURITY INSTRUMENTS IN SUCH DENOMINATIONS AS LENDER SHALL
DETERMINE IN ITS SOLE DISCRETION, EACH OF WHICH SHALL COVER ALL OR A PORTION OF
THE PROPERTY TO BE MORE PARTICULARLY DESCRIBED THEREIN.
TO THAT END, BORROWER,
UPON WRITTEN REQUEST OF LENDER, SHALL EXECUTE, ACKNOWLEDGE AND DELIVER, OR CAUSE
TO BE EXECUTED, ACKNOWLEDGED AND DELIVERED BY THE THEN OWNER OF THE PROPERTY, TO
LENDER AND/OR ITS DESIGNEE OR DESIGNEES SUBSTITUTE NOTES AND SECURITY
INSTRUMENTS IN SUCH PRINCIPAL AMOUNTS, AGGREGATING NOT MORE THAN THE THEN UNPAID
PRINCIPAL AMOUNT OF THE NOTE, AND CONTAINING TERMS, PROVISIONS AND CLAUSES
SIMILAR TO, AND NO MORE ONEROUS TO BORROWER THAN, THOSE CONTAINED HEREIN AND IN
THE NOTE, AND SUCH OTHER DOCUMENTS AND INSTRUMENTS AS MAY BE REQUIRED BY LENDER;
PROVIDED THAT BORROWER'S OBLIGATIONS ARE NOT MATERIALLY INCREASED THEREBY.
SECTION 5.5
REPLACEMENT DOCUMENTS.
UPON RECEIPT OF AN AFFIDAVIT OF
AN OFFICER OF LENDER AS TO THE LOSS, THEFT, DESTRUCTION OR MUTILATION OF THE
NOTE OR ANY OTHER LOAN DOCUMENT WHICH IS NOT OF PUBLIC RECORD, AND, IN THE CASE
OF ANY SUCH MUTILATION, UPON SURRENDER AND CANCELLATION OF SUCH NOTE OR OTHER
LOAN DOCUMENT, BORROWER WILL ISSUE, IN LIEU THEREOF, A REPLACEMENT NOTE OR OTHER
LOAN DOCUMENT, DATED THE DATE OF SUCH LOST, STOLEN, DESTROYED OR MUTILATED NOTE
OR OTHER LOAN DOCUMENT IN THE SAME PRINCIPAL AMOUNT THEREOF AND OTHERWISE OF
LIKE TENOR.
ARTICLE VI - DUE ON SALE/ENCUMBRANCE
SECTION 6.1
LENDER RELIANCE.
BORROWER ACKNOWLEDGES THAT LENDER HAS
EXAMINED AND RELIED ON THE EXPERIENCE OF BORROWER AND ITS GENERAL PARTNERS,
MEMBERS, PRINCIPALS AND (IF BORROWER IS A TRUST) BENEFICIAL OWNERS IN OWNING AND
OPERATING PROPERTIES SUCH AS THE PROPERTY IN AGREEING TO MAKE THE LOAN, AND WILL
CONTINUE TO RELY ON BORROWER'S OWNERSHIP OF THE PROPERTY AS A MEANS OF
MAINTAINING THE VALUE OF THE PROPERTY AS SECURITY FOR REPAYMENT OF THE DEBT AND
THE PERFORMANCE OF THE OTHER OBLIGATIONS.
BORROWER ACKNOWLEDGES THAT LENDER HAS
A VALID INTEREST IN MAINTAINING THE VALUE OF THE PROPERTY SO AS TO ENSURE THAT,
SHOULD BORROWER DEFAULT IN THE REPAYMENT OF
13
THE DEBT OR THE PERFORMANCE OF THE OTHER OBLIGATIONS, LENDER CAN RECOVER THE
DEBT BY A SALE OF THE PROPERTY.
SECTION 6.2
NO SALE/ENCUMBRANCE.
NEITHER BORROWER NOR ANY RESTRICTED
PARTY SHALL TRANSFER THE PROPERTY OR ANY PART THEREOF OR ANY INTEREST THEREIN OR
PERMIT OR SUFFER THE PROPERTY OR ANY PART THEREOF OR ANY INTEREST THEREIN TO BE
TRANSFERRED OTHER THAN AS EXPRESSLY PERMITTED PURSUANT TO THE TERMS OF THE LOAN
AGREEMENT.
ARTICLE VII - RIGHTS AND REMEDIES UPON DEFAULT
SECTION 7.1
REMEDIES.
UPON THE OCCURRENCE AND DURING THE CONTINUANCE
OF ANY EVENT OF DEFAULT, BORROWER AGREES THAT LENDER MAY TAKE SUCH ACTION,
WITHOUT NOTICE OR DEMAND, AS IT DEEMS ADVISABLE TO PROTECT AND ENFORCE ITS
RIGHTS AGAINST BORROWER AND IN AND TO THE PROPERTY, INCLUDING, BUT NOT LIMITED
TO, THE FOLLOWING ACTIONS, EACH OF WHICH