(5) BUSINESS DAYS AFTER LENDER'S DEMAND THEREFOR, REIMBURSE LENDER
FOR ALL SUMS SO EXPENDED, TOGETHER WITH INTEREST THEREON AT THE DEFAULT RATE
FROM THE DATE ADVANCED, ALL OF WHICH SHALL BE DEEMED PART OF THE DEBT.
NOTHING
CONTAINED HEREIN SHALL BE DEEMED A CONSENT OR REQUEST OF LENDER, EXPRESS OR
IMPLIED, BY INFERENCE OR OTHERWISE, TO THE PERFORMANCE OF ANY ALTERATION, REPAIR
OR OTHER WORK BY ANY CONTRACTOR, SUBCONTRACTOR OR LABORER OR THE FURNISHING OF
ANY MATERIALS BY ANY MATERIALMEN IN CONNECTION THEREWITH.
(C)
NOTWITHSTANDING THE FOREGOING, BORROWER MAY CONTEST ANY LIEN
(OTHER THAN A LIEN RELATING TO NON-PAYMENT OF IMPOSITIONS, THE CONTEST OF WHICH
SHALL BE GOVERNED BY SECTION 4.04 HEREOF) OF THE TYPE SET FORTH IN SUBPARAGRAPH
(B)(II) OF THIS SECTION 2.06 PROVIDED THAT, FOLLOWING PRIOR NOTICE TO LENDER (I)
BORROWER IS CONTESTING THE VALIDITY OF SUCH LIEN WITH DUE DILIGENCE AND IN GOOD
FAITH AND BY APPROPRIATE PROCEEDINGS, WITHOUT COST OR EXPENSE TO LENDER OR ANY
OF ITS AGENTS, EMPLOYEES, OFFICERS, OR DIRECTORS, (II) BORROWER SHALL PRECLUDE
THE COLLECTION OF, OR OTHER REALIZATION UPON, ANY CONTESTED AMOUNT FROM THE
PROPERTY OR ANY REVENUES FROM OR INTEREST IN THE PROPERTY, (III) NEITHER THE
PROPERTY NOR ANY PART THEREOF NOR INTEREST THEREIN, SHALL BE IN ANY DANGER OF
BEING SOLD, FORFEITED OR LOST BY REASON OF SUCH CONTEST BY BORROWER, (IV) SUCH
CONTEST BY BORROWER SHALL NOT AFFECT THE OWNERSHIP, USE OR OCCUPANCY OF THE
PROPERTY, (V) SUCH CONTEST BY BORROWER SHALL NOT SUBJECT LENDER, TRUSTEE OR
BORROWER TO THE RISK OF CIVIL OR CRIMINAL LIABILITY (OTHER THAN THE CIVIL
LIABILITY OF BORROWER FOR THE AMOUNT OF THE LIEN IN QUESTION), (VI) SUCH LIEN IS
SUBORDINATE TO THE LIEN OF THIS SECURITY INSTRUMENT, (VII) BORROWER HAS NOT
CONSENTED TO SUCH LIEN, (VIII) BORROWER HAS GIVEN LENDER PROMPT NOTICE OF THE
FILING OF SUCH LIEN AND THE BONDING THEREOF BY BORROWER AND, UPON REQUEST BY
LENDER FROM TIME TO TIME, NOTICE OF THE STATUS OF SUCH CONTEST BY BORROWER
AND/OR CONFIRMATION OF THE CONTINUING SATISFACTION OF THE CONDITIONS SET FORTH
IN THIS SECTION 2.06(C), (IX) BORROWER SHALL PROMPTLY PAY THE OBLIGATION SECURED
BY SUCH LIEN UPON A FINAL DETERMINATION OF BORROWER'S LIABILITY THEREFOR, AND
(X) BORROWER SHALL DELIVER TO LENDER CASH, A BOND OR OTHER SECURITY ACCEPTABLE
TO LENDER EQUAL TO 125% OF THE CONTESTED AMOUNT PURSUANT TO COLLATERAL
ARRANGEMENTS REASONABLY SATISFACTORY TO LENDER.
SECTION 2.07.
COST OF DEFENDING AND UPHOLDING THIS SECURITY INSTRUMENT LIEN.
IF ANY ACTION OR PROCEEDING IS COMMENCED TO WHICH LENDER OR TRUSTEE IS MADE A
PARTY RELATING TO THE LOAN DOCUMENTS AND/OR THE PROPERTY OR LENDER'S OR
TRUSTEE'S INTEREST THEREIN OR IN WHICH IT BECOMES NECESSARY TO DEFEND OR UPHOLD
THE LIEN OF THIS SECURITY INSTRUMENT OR ANY OTHER LOAN
45
DOCUMENT, BORROWER SHALL, ON DEMAND, REIMBURSE LENDER AND/OR TRUSTEE, AS
APPLICABLE, FOR ALL EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE
ATTORNEYS' FEES AND DISBURSEMENTS) INCURRED BY LENDER AND/OR TRUSTEE, AS
APPLICABLE, IN CONNECTION THEREWITH, AND SUCH SUM, TOGETHER WITH INTEREST
THEREON AT THE DEFAULT RATE