IN ORDER TO SECURE THE PERFORMANCE AND DISCHARGE OF MORTGAGOR'S
OBLIGATIONS UNDER THIS SECTION 1.6, BUT NOT IN LIEU OF SUCH OBLIGATIONS, DEPOSIT
WITH LENDER ON THE FIRST DAY OF EACH CALENDAR MONTH THROUGHOUT THE TERM OF THE
LOAN, A SUM IN AN AMOUNT DETERMINED BY LENDER FROM TIME TO TIME BY WRITTEN
NOTICE TO MORTGAGOR, IN ORDER TO ACCUMULATE FUNDS SUFFICIENT TO PERMIT LENDER TO
PAY ALL PREMIUMS PAYABLE IN CONNECTION WITH THE INSURANCE REQUIRED HEREUNDER AT
LEAST THIRTY (30) DAYS PRIOR TO THE DATE OR DATES ON WHICH THEY SHALL BECOME
DUE.
MORTGAGOR HEREBY PLEDGES TO LENDER, AND GRANTS TO LENDER A SECURITY
INTEREST IN, ANY AND ALL SUCH DEPOSITS AS SECURITY FOR THE LOAN.
UPON DEMAND BY
LENDER, MORTGAGOR SHALL DELIVER TO LENDER SUCH ADDITIONAL MONIES AS ARE REQUIRED
TO SATISFY ANY DEFICIENCIES IN THE AMOUNTS NECESSARY TO ENABLE LENDER TO PAY
SUCH PREMIUMS THIRTY (30) DAYS PRIOR TO THE DATE THEY SHALL BECOME DUE.
ANY
DEPOSITS RECEIVED PURSUANT TO THIS SECTION 1.6.8 SHALL NOT BE, NOR BE DEEMED TO
BE, TRUST
10
FUNDS, BUT MAY BE COMMINGLED WITH THE GENERAL FUNDS OF LENDER AND LENDER SHALL
HAVE NO OBLIGATION TO PAY INTEREST ON AMOUNTS DEPOSITED WITH LENDER PURSUANT TO
THIS SECTION 1.6.8.
IF ANY EVENT OF DEFAULT OCCURS, ANY PART OR ALL OF THE
AMOUNTS THEN ON DEPOSIT OR THEREAFTER DEPOSITED WITH LENDER UNDER THIS
SECTION 1.6.8 MAY AT LENDER'S OPTION BE APPLIED TO PAYMENT OF MORTGAGOR'S
LIABILITIES IN SUCH ORDER AS LENDER MAY DETERMINE.
1.7.
NON-IMPAIRMENT OF LENDER'S RIGHTS.
NOTHING CONTAINED
IN THIS MORTGAGE SHALL BE DEEMED TO LIMIT OR OTHERWISE AFFECT ANY RIGHT OR
REMEDY OF LENDER UNDER ANY PROVISION OF THIS MORTGAGE OR OF ANY STATUTE OR
RULE OF LAW TO PAY AND, UPON MORTGAGOR'S FAILURE TO PAY THE SAME, LENDER MAY PAY
ANY AMOUNT REQUIRED TO BE PAID BY MORTGAGOR UNDER SECTIONS 1.4, 1.5 AND 1.6 AND
THE AMOUNT SO PAID BY LENDER SHALL BEAR INTEREST AT THE DEFAULT RATE (AS DEFINED
IN THE NOTES), AND, TOGETHER WITH INTEREST, SHALL BE ADDED TO MORTGAGOR'S
LIABILITIES.
MORTGAGOR SHALL PAY TO LENDER ON DEMAND THE AMOUNT SO PAID BY
LENDER, TOGETHER WITH ALL ACCRUED AND UNPAID INTEREST THEREON.
THE PROVISIONS
OF SECTION 1.4.3 ARE SOLELY FOR THE ADDED PROTECTION OF LENDER AND ENTAIL NO
RESPONSIBILITY ON LENDER'S PART BEYOND THE ALLOWING OF DUE CREDIT AS
SPECIFICALLY PROVIDED THEREIN.
UPON ASSIGNMENT OF THIS MORTGAGE, ANY FUNDS ON
HAND SHALL BE TURNED OVER TO THE ASSIGNEE AND ANY RESPONSIBILITY OF LENDER WITH
RESPECT TO SUCH FUNDS SHALL TERMINATE.
1.8.
CARE OF THE MORTGAGED PROPERTY.
MORTGAGOR
SHALL PRESERVE AND MAINTAIN THE MORTGAGED PROPERTY IN GOOD AND FIRST CLASS
CONDITION AND REPAIR.
MORTGAGOR SHALL NOT, WITHOUT THE PRIOR WRITTEN CONSENT OF
LENDER, PERMIT, COMMIT OR SUFFER ANY WASTE, IMPAIRMENT OR DETERIORATION OF THE
MORTGAGED PROPERTY OR OF ANY PART THEREOF, AND WILL NOT TAKE ANY ACTION WHICH
WILL INCREASE THE RISK OF FIRE OR OTHER HAZARD TO THE MORTGAGED PROPERTY OR TO
ANY PART THEREOF.
EXCEPT AS