INSTRUMENT SECURED HEREBY, AGENT MAY, AT ITS ELECTION
IN EACH INSTANCE, BUT WITHOUT ANY OBLIGATION WHATSOEVER TO DO SO, UPON THIRTY
(30) DAYS PRIOR WRITTEN NOTICE (EXCEPT IN THE CASE OF (I) AN EMERGENCY WHERE
THERE IS DANGER TO PERSON OR PROPERTY, OR (II) REQUIRED INSURANCE COVERAGE WOULD
LAPSE, OR (III) AN EVENT OF DEFAULT EXISTS, IN EACH OF WHICH EVENTS NO NOTICE
SHALL BE REQUIRED), CAUSE SUCH REPAIRS OR REPLACEMENTS TO BE MADE, OBTAIN SUCH
INSURANCE OR PAY SAID TAXES, ASSESSMENTS, CHARGES, AND SUMS, INCUR AND PAY
REASONABLE AMOUNTS IN PROTECTING ITS RIGHTS HEREUNDER AND THE SECURITY HEREBY
GRANTED, PAY ANY BALANCE DUE UNDER ANY CONDITIONAL AGREEMENT OF SALE (OR LEASE)
OF ANY PROPERTY INCLUDED AS A PART OF THE MORTGAGED PROPERTY, AND PAY ANY
AMOUNTS AS AGENT DEEMS REASONABLY NECESSARY OR APPROPRIATE TO SATISFY ANY TERM
OR CONDITION OF THIS MORTGAGE, WHICH MORTGAGOR SHALL HAVE FAILED TO SATISFY, OR
TO REMEDY ANY BREACH OF SUCH TERM OR CONDITION, AND ANY AMOUNTS OR EXPENSES SO
PAID OR INCURRED, TOGETHER WITH INTEREST THEREON FROM THE DATE OF PAYMENT BY
AGENT OR THE LENDERS AT THE DEFAULT RATE AS PROVIDED IN THE GUARANTY OR LOAN
AGREEMENT, SHALL BE IMMEDIATELY DUE AND PAYABLE BY MORTGAGOR TO AGENT AND THE
LENDERS AND UNTIL PAID SHALL BE SECURED HEREBY EQUALLY AND RATABLY, AND THE SAME
MAY BE COLLECTED AS PART OF SAID PRINCIPAL DEBT IN ANY SUIT HEREON OR UPON THE
NOTE.
NO PAYMENT BY AGENT OR THE LENDERS SHALL RELIEVE MORTGAGOR FROM ANY
DEFAULT HEREUNDER OR IMPAIR ANY RIGHT OR REMEDY OF AGENT CONSEQUENT THEREON.
12.
TAX RESERVE AND INSURANCE RESERVE.
UNLESS
PAID, OR REQUIRED TO BE PAID, BY THE TENANT UNDER THE LEASE, MORTGAGOR SHALL,
UPON THE REQUEST OF AGENT, FROM TIME TO TIME IF AN EVENT OF DEFAULT SHALL BE IN
EXISTENCE, PAY TO AGENT, SUCH AMOUNT AS AGENT FROM TIME TO TIME ESTIMATES AS
NECESSARY TO CREATE AND MAINTAIN A RESERVE FUND FROM WHICH TO PAY BEFORE THE
SAME BECOME DUE: (A) ALL TAXES, ASSESSMENTS, LIENS AND CHARGES ON OR AGAINST THE
MORTGAGED PROPERTY, AND (B) ALL PREMIUMS FOR INSURANCE POLICIES WHICH ARE
REQUIRED BY THIS MORTGAGE.
SUCH PAYMENTS, IF SO REQUESTED, SHALL BE INVESTED IN
AN INTEREST-BEARING ACCOUNT WITH THE INTEREST EARNED TO BE ADDED TO THE RESERVE
ACCOUNT WHICH SHALL BE HELD BY AGENT AS CASH COLLATERAL, AND SO LONG AS NO EVENT
OF DEFAULT EXISTS HEREUNDER OR UNDER ANY OF OTHER LOAN DOCUMENTS, SHALL BE PAID
TO OR FOR MORTGAGOR'S BENEFIT AS SET FORTH
7
BELOW.
PAYMENTS FROM SUCH RESERVE FUND FOR SAID PURPOSES MAY BE MADE BY AGENT
AT ITS DISCRETION EVEN THOUGH SUBSEQUENT OWNERS OF THE PROPERTY DESCRIBED HEREIN
MAY BENEFIT THEREBY.
IN THE EVENT OF ANY EVENT OF DEFAULT UNDER THE LOAN
AGREEMENT OR UNDER THE TERMS OF THIS MORTGAGE, ANY PART OR ALL OF SUCH RESERVE
FUND MAY BE APPLIED, AT THE OPTION OF AGENT, TO CURE ANY SUCH EVENT OF DEFAULT
OR TO ANY PART OF THE INDEBTEDNESS HEREBY SECURED.
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