THE DEBT AND PERFORMANCE OF
ALL OTHER OBLIGATIONS UNDER THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS,
LENDER SHALL DISBURSE TO BORROWER ALL REMAINING RESERVE FUNDS.
63
ARTICLE VIII
DEFAULTS
SECTION 8.1
EVENT OF DEFAULT.
(A)
EACH OF THE FOLLOWING EVENTS SHALL
CONSTITUTE AN EVENT OF DEFAULT HEREUNDER (AN "EVENT OF DEFAULT"):
(I)
IF ANY PORTION OF THE DEBT IS NOT PAID
WITHIN FIVE (5) DAYS OF THE APPLICABLE DUE DATE;
(II)
IF ANY OF THE TAXES OR OTHER CHARGES ARE
NOT PAID PRIOR TO THE DATE WHEN THE SAME BECOME DELINQUENT, EXCEPT TO THE EXTENT
THAT BORROWER IS CONTESTING SAME IN ACCORDANCE WITH THE TERMS OF SECTION 5.1.2
HEREOF, OR THERE ARE SUFFICIENT FUNDS IN THE TAX AND INSURANCE ESCROW FUND TO
PAY SUCH TAXES OR OTHER CHARGES AND LENDER FAILS TO OR REFUSES TO RELEASE THE
SAME FROM THE TAX AND INSURANCE ESCROW FUND;
(III)
IF THE POLICIES ARE NOT KEPT IN FULL FORCE
AND EFFECT, OR IF CERTIFIED COPIES OF THE POLICIES ARE NOT DELIVERED TO LENDER
WITHIN TEN (10) DAYS OF REQUEST;
(IV)
IF BORROWER TRANSFERS OR ENCUMBERS ANY PORTION
OF THE PROPERTY WITHOUT LENDER'S PRIOR WRITTEN CONSENT (TO EXTENT SUCH CONSENT
IS REQUIRED) OR OTHERWISE VIOLATES THE PROVISIONS OF SECTION 5.2.13 OF THIS LOAN
AGREEMENT;
(V)
IF ANY MATERIAL REPRESENTATION OR WARRANTY
MADE BY BORROWER HEREIN OR IN ANY OTHER LOAN DOCUMENT, OR IN ANY REPORT,
CERTIFICATE, FINANCIAL STATEMENT OR OTHER INSTRUMENT, AGREEMENT OR DOCUMENT
FURNISHED TO LENDER SHALL HAVE BEEN FALSE OR MISLEADING IN ANY MATERIAL RESPECT
AS OF THE DATE THE REPRESENTATION OR WARRANTY WAS MADE;
(VI)
IF BORROWER OR INDEMNITOR OR ANY GUARANTOR
UNDER ANY GUARANTY OR INDEMNITY ISSUED IN CONNECTION WITH THE LOAN SHALL MAKE AN
ASSIGNMENT FOR THE BENEFIT OF CREDITORS;
(VII)
IF A RECEIVER, LIQUIDATOR OR TRUSTEE SHALL BE
APPOINTED FOR BORROWER OR ANY GUARANTOR OR INDEMNITOR UNDER ANY GUARANTEE OR
INDEMNITY ISSUED IN CONNECTION WITH THE LOAN OR IF BORROWER OR SUCH GUARANTOR OR
INDEMNITOR SHALL BE ADJUDICATED A BANKRUPT OR INSOLVENT, OR IF ANY PETITION FOR
BANKRUPTCY, REORGANIZATION OR ARRANGEMENT PURSUANT TO FEDERAL BANKRUPTCY LAW, OR
ANY SIMILAR FEDERAL OR STATE LAW, SHALL BE FILED BY OR AGAINST, CONSENTED TO, OR
ACQUIESCED IN BY, BORROWER OR SUCH GUARANTOR OR INDEMNITOR, OR IF ANY PROCEEDING
FOR THE DISSOLUTION OR LIQUIDATION OF BORROWER OR SUCH GUARANTOR OR INDEMNITOR
SHALL BE INSTITUTED; PROVIDED, HOWEVER, IF SUCH APPOINTMENT, ADJUDICATION,
PETITION OR PROCEEDING WAS INVOLUNTARY AND NOT CONSENTED TO BY BORROWER OR SUCH
GUARANTOR OR INDEMNITOR, UPON THE SAME NOT BEING DISCHARGED, STAYED OR DISMISSED
WITHIN ONE HUNDRED EIGHTY (180) DAYS;
64
(VIII)
IF BORROWER ATTEMPTS TO ASSIGN ITS RIGHTS UNDER
THIS LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY INTEREST HEREIN OR
THEREIN IN CONTRAVENTION OF THE LOAN DOCUMENTS;
(IX)
IF BORROWER BREACHES ANY OF ITS RESPECTIVE
NEGATIVE COVENANTS CONTAINED IN SECTION 5.2 OR ANY COVENANT CONTAINED IN
SECTION 4.1.30 HEREOF;
(X)
WITH RESPECT TO ANY TERM, COVENANT OR
PROVISION SET FORTH HEREIN WHICH SPECIFICALLY CONTAINS