SUCH OTHER EVENT OF DEFAULT, AS APPLICABLE, AT
THE DEFAULT RATE.
(B)
FROM AND AFTER THE MATURITY DATE, THE UNPAID PRINCIPAL BALANCE
SHALL CONTINUE TO BEAR INTEREST AT THE DEFAULT RATE UNTIL AND INCLUDING THE DATE
ON WHICH THE ENTIRE PRINCIPAL BALANCE IS PAID IN FULL.
(C)
BORROWER ACKNOWLEDGES THAT (I) ITS FAILURE TO MAKE TIMELY PAYMENTS
WILL CAUSE LENDER TO INCUR ADDITIONAL EXPENSES IN SERVICING AND PROCESSING THE
LOAN, (II) DURING THE TIME THAT ANY MONTHLY INSTALLMENT UNDER THIS NOTE IS
DELINQUENT FOR THIRTY (30) DAYS OR MORE, LENDER WILL INCUR ADDITIONAL COSTS AND
EXPENSES ARISING FROM ITS LOSS OF THE USE OF THE MONEY DUE AND FROM THE ADVERSE
IMPACT ON LENDER'S ABILITY TO MEET ITS OTHER OBLIGATIONS AND TO TAKE ADVANTAGE
OF OTHER INVESTMENT OPPORTUNITIES; AND (III)
IT IS EXTREMELY DIFFICULT AND
IMPRACTICAL TO DETERMINE THOSE ADDITIONAL COSTS AND EXPENSES.
BORROWER ALSO
ACKNOWLEDGES THAT, DURING THE TIME THAT ANY MONTHLY INSTALLMENT UNDER THIS NOTE
IS DELINQUENT FOR THIRTY (30) DAYS OR MORE OR ANY OTHER EVENT
5
OF DEFAULT HAS OCCURRED AND IS CONTINUING, LENDER'S RISK OF NONPAYMENT OF THIS
NOTE WILL BE MATERIALLY INCREASED AND LENDER IS ENTITLED TO BE COMPENSATED FOR
SUCH INCREASED RISK.
BORROWER AGREES THAT THE INCREASE IN THE RATE OF INTEREST
PAYABLE UNDER THIS NOTE TO THE DEFAULT RATE REPRESENTS A FAIR AND REASONABLE
ESTIMATE, TAKING INTO ACCOUNT ALL CIRCUMSTANCES EXISTING ON THE DATE OF THIS
NOTE, OF THE ADDITIONAL COSTS AND EXPENSES LENDER WILL INCUR BY REASON OF THE
BORROWER'S DELINQUENT PAYMENT AND THE ADDITIONAL COMPENSATION LENDER IS ENTITLED
TO RECEIVE FOR THE INCREASED RISKS OF NONPAYMENT ASSOCIATED WITH A DELINQUENT
LOAN.
9.
LIMITS ON PERSONAL LIABILITY.
(A)
EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION 9, BORROWER SHALL
HAVE NO PERSONAL LIABILITY UNDER THIS NOTE, THE SECURITY INSTRUMENT OR ANY OTHER
LOAN DOCUMENT FOR THE REPAYMENT OF THE INDEBTEDNESS OR FOR THE PERFORMANCE OF
ANY OTHER OBLIGATIONS OF BORROWER UNDER THE LOAN DOCUMENTS AND LENDER'S ONLY
RECOURSE FOR THE SATISFACTION OF THE INDEBTEDNESS AND THE PERFORMANCE OF SUCH
OBLIGATIONS SHALL BE LENDER'S EXERCISE OF ITS RIGHTS AND REMEDIES WITH RESPECT
TO THE MORTGAGED PROPERTY AND TO ANY OTHER COLLATERAL HELD BY LENDER AS SECURITY
FOR THE INDEBTEDNESS.
THIS LIMITATION ON BORROWER'S LIABILITY SHALL NOT LIMIT
OR IMPAIR LENDER'S ENFORCEMENT OF ITS RIGHTS AGAINST ANY GUARANTOR OF THE
INDEBTEDNESS OR ANY GUARANTOR OF ANY OTHER OBLIGATIONS OF BORROWER.
(B)
BORROWER SHALL BE PERSONALLY LIABLE TO LENDER FOR THE AMOUNT OF
THE BASE RECOURSE, PLUS ANY OTHER AMOUNTS FOR WHICH BORROWER HAS PERSONAL
LIABILITY UNDER THIS SECTION 9.
(C)
IN ADDITION TO THE BASE RECOURSE, BORROWER SHALL BE PERSONALLY
LIABLE TO LENDER FOR THE REPAYMENT OF A FURTHER PORTION OF THE INDEBTEDNESS
EQUAL TO ANY LOSS OR DAMAGE SUFFERED BY LENDER AS A RESULT OF THE OCCURRENCE OF
ANY OF THE FOLLOWING EVENTS:
(I)
BORROWER FAILS TO PAY TO LENDER UPON DEMAND AFTER AN EVENT OF
DEFAULT ALL RENTS TO WHICH LENDER IS ENTITLED UNDER SECTION 3(A) OF THE SECURITY
INSTRUMENT AND