LIEU THEREOF.
ARTICLE V
NEGATIVE COVENANTS
Grantor hereby unconditionally covenants and agrees with Beneficiary until the
entire Indebtedness shall have been paid in full and all of the Obligations
shall have been fully performed and discharged as follows:
5.1
USE VIOLATIONS. GRANTOR WILL NOT USE, MAINTAIN, OPERATE, OR
OCCUPY, OR ALLOW THE USE, MAINTENANCE, OPERATION, OR OCCUPANCY OF, THE MORTGAGED
PROPERTY IN ANY MANNER WHICH (I) VIOLATES ANY LEGAL REQUIREMENT, (II) MAY BE
DANGEROUS, UNLESS SAFEGUARDED AS REQUIRED BY LAW AND/OR APPROPRIATE INSURANCE,
(III) CONSTITUTES A PUBLIC OR PRIVATE NUISANCE, OR (IV) MAKES VOID, VOIDABLE, OR
CANCELLABLE, OR INCREASES THE PREMIUM OF, ANY INSURANCE THEN IN FORCE WITH
RESPECT THERETO.
5.2
CHANGE IN ZONING. GRANTOR WILL NOT (I) SEEK OR ACQUIESCE IN A
ZONING RECLASSIFICATION, ZONING VARIANCE OR SPECIAL EXCEPTION TO ZONING OF ALL
OR ANY PORTION OF THE MORTGAGED PROPERTY, (II) GRANT OR CONSENT TO ANY EASEMENT,
DEDICATION, PLAT, OR RESTRICTION (OR ALLOW ANY EASEMENT TO BECOME ENFORCEABLE BY
PRESCRIPTION), (III) SEEK OR ACQUIESCE TO ANY IMPOSITION OF ANY ADDITION OF A
LEGAL REQUIREMENT OR ANY AMENDMENT OR MODIFICATION THEREOF, COVERING ALL OR ANY
PORTION OF THE MORTGAGED PROPERTY, WITHOUT BENEFICIARY'S PRIOR WRITTEN CONSENT.
5.3
NO DRILLING. GRANTOR WILL NOT, WITHOUT THE PRIOR WRITTEN CONSENT
OF BENEFICIARY, PERMIT ANY DRILLING OR EXPLORATION FOR OR EXTRACTION, REMOVAL,
OR PRODUCTION OF, ANY MINERALS FROM THE SURFACE OR SUBSURFACE OF THE LAND
REGARDLESS OF THE DEPTH THEREOF OR THE METHOD OF MINING OR EXTRACTION THEREOF.
5.4
NO DISPOSITION. GRANTOR WILL NOT MAKE A DISPOSITION WITHOUT
OBTAINING BENEFICIARY'S PRIOR WRITTEN CONSENT TO THE DISPOSITION.
NOTWITHSTANDING THE ABOVE, NOTHING IN THIS DEED OF TRUST SHALL PREVENT THE
TRANSFER OF A LEGAL AND BENEFICIAL OWNERSHIP INTEREST IN THE GRANTOR, SO LONG AS
GRANTOR IS DIRECTLY OR INDIRECTLY CONTROLLED BY CLAYTON W. WILLIAMS, MODESTA S.
WILLIAMS OR A CHILD OF CLAYTON W. WILLIAMS, JR.
15
5.5
NO SUBORDINATE MORTGAGES. GRANTOR WILL NOT CREATE, PLACE, OR
PERMIT TO BE CREATED OR PLACED, OR THROUGH ANY ACT OR FAILURE TO ACT, ACQUIESCE
IN THE PLACING OF, OR ALLOW TO REMAIN ANY SUBORDINATE MORTGAGE REGARDLESS OF
WHETHER SUCH SUBORDINATE MORTGAGE IS EXPRESSLY SUBORDINATE TO THE LIENS OR
SECURITY INTERESTS OF THE LOAN DOCUMENTS WITH RESPECT TO THE MORTGAGED PROPERTY,
OTHER THAN THE PERMITTED EXCEPTIONS.
5.6
ADDITIONAL OBLIGATIONS. GRANTOR SHALL NOT GUARANTEE, ENDORSE OR
OTHERWISE BECOME CONTINGENTLY LIABLE IN CONNECTION WITH ANY OBLIGATIONS OF ANY
OTHER PERSON OR ENTITY, AND SHALL NOT CREATE OR INCUR ANY ADDITIONAL LIABILITY,
WHETHER CONTINGENT OR NON-CONTINGENT, WITH RESPECT TO EITHER GRANTOR OR THE
MORTGAGED PROPERTY, EXCEPT AS SPECIFICALLY ALLOWED OR CONTEMPLATED PURSUANT TO
THE LOAN DOCUMENTS.
5.7
BUSINESS CHANGE. GRANTOR SHALL NOT MAKE OR PERMIT TO OCCUR OR
EXIST A MATERIAL CHANGE IN THE CHARACTER OF ITS BUSINESS ACTIVITIES AS SUCH
EXISTED ON THE DATE HEREOF, WITHOUT BENEFICIARY'S PRIOR WRITTEN CONSENT.
ARTICLE VI
EVENTS OF DEFAULT
The term "Event of Default," as used herein and in the Loan Documents, shall
mean the occurrence or happening, at any time and from time to time,