THE FIXTURES, THE EQUIPMENT AND THE PERSONAL PROPERTY SHALL NOT BE
REMOVED, DEMOLISHED OR MATERIALLY ALTERED EXCEPT AS PROVIDED FOR IN THE LOAN
AGREEMENT (EXCEPT FOR NORMAL REPLACEMENT OF THE FIXTURES, THE EQUIPMENT OR THE
PERSONAL PROPERTY, TENANT FINISH AND REFURBISHMENT OF THE IMPROVEMENTS) WITHOUT
THE CONSENT OF LENDER AS PROVIDED FOR IN THE LOAN AGREEMENT. BORROWER SHALL
PROMPTLY REPAIR, REPLACE OR REBUILD ANY PART OF THE PROPERTY WHICH MAY BE
DESTROYED BY ANY CASUALTY, OR BECOME DAMAGED, WORN OR DILAPIDATED AND SHALL
COMPLETE AND PAY FOR ANY STRUCTURE AT ANY TIME IN THE PROCESS OF CONSTRUCTION OR
REPAIR ON THE LAND EXCEPT AS SET FORTH IN THE LOAN AGREEMENT.
SECTION 3.5.
WASTE. BORROWER SHALL NOT COMMIT OR SUFFER ANY WASTE OF
THE PROPERTY OR MAKE ANY CHANGE IN THE USE OF THE PROPERTY WHICH WILL IN ANY WAY
MATERIALLY INCREASE THE RISK OF FIRE OR OTHER HAZARD ARISING OUT OF THE
OPERATION OF THE PROPERTY, OR TAKE ANY
8
ACTION THAT MIGHT INVALIDATE OR ALLOW THE CANCELLATION OF ANY POLICY, OR DO OR
PERMIT TO BE DONE THEREON ANYTHING THAT MAY IN ANY WAY MATERIALLY IMPAIR THE
VALUE OF THE PROPERTY OR THE SECURITY OF THIS MORTGAGE. BORROWER WILL NOT,
WITHOUT THE PRIOR WRITTEN CONSENT OF LENDER, PERMIT ANY DRILLING OR EXPLORATION
FOR OR EXTRACTION, REMOVAL, OR PRODUCTION OF ANY MINERALS FROM THE SURFACE OR
THE SUBSURFACE OF THE LAND, REGARDLESS OF THE DEPTH THEREOF OR THE METHOD OF
MINING OR EXTRACTION THEREOF.
SECTION 3.6.
PAYMENT FOR LABOR AND MATERIALS.
(A)
SUBJECT TO THE TERMS, PROVISIONS AND CONDITIONS OF THE LOAN
AGREEMENT, BORROWER WILL PROMPTLY PAY OR CAUSE TO BE PAID WHEN DUE ALL BILLS AND
COSTS FOR LABOR, MATERIALS, AND SPECIFICALLY FABRICATED MATERIALS ("LABOR AND
MATERIAL COSTS") INCURRED IN CONNECTION WITH THE PROPERTY AND NEVER PERMIT TO
EXIST BEYOND THE DUE DATE THEREOF IN RESPECT OF THE PROPERTY OR ANY PART THEREOF
ANY LIEN OR SECURITY INTEREST, EVEN THOUGH INFERIOR TO THE LIENS AND THE
SECURITY INTERESTS HEREOF, AND IN ANY EVENT NEVER PERMIT TO BE CREATED OR EXIST
IN RESPECT OF THE PROPERTY OR ANY PART THEREOF ANY OTHER OR ADDITIONAL LIEN OR
SECURITY INTEREST OTHER THAN THE LIENS OR SECURITY INTERESTS HEREOF EXCEPT FOR
THE PERMITTED ENCUMBRANCES.
(B)
SUBJECT TO THE TERMS, PROVISIONS AND CONDITIONS OF THE LOAN
AGREEMENT, AFTER PRIOR WRITTEN NOTICE TO LENDER, BORROWER, OR ANY TENANT OF THE
PROPERTY PURSUANT TO THE TERMS OF SUCH TENANT'S LEASE, AT ITS OWN EXPENSE, MAY
CONTEST BY APPROPRIATE LEGAL PROCEEDING, PROMPTLY INITIATED AND CONDUCTED IN
GOOD FAITH AND WITH DUE DILIGENCE, THE AMOUNT OR VALIDITY OR APPLICATION IN
WHOLE OR IN PART OF ANY OF THE LABOR AND MATERIAL COSTS, PROVIDED THAT (I) NO
EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING UNDER THE LOAN AGREEMENT, THE
NOTE, THIS MORTGAGE OR ANY OF THE OTHER LOAN DOCUMENTS, (II) BORROWER IS
PERMITTED TO DO SO UNDER THE PROVISIONS OF ANY OTHER MORTGAGE, DEED OF TRUST OR
DEED TO SECURE DEBT AFFECTING THE PROPERTY, (III) SUCH PROCEEDING