BY WRITTEN NOTICE TO
MORTGAGOR, IN ORDER TO ACCUMULATE FUNDS SUFFICIENT TO PERMIT LENDER TO PAY ALL
ANNUAL AD VALOREM TAXES, ASSESSMENTS AND CHARGES OF THE NATURE DESCRIBED IN
SECTION 1.4.1 AT LEAST THIRTY (30) DAYS PRIOR TO THE DATE OR DATES ON WHICH THEY
SHALL BECOME DELINQUENT.
MORTGAGOR HEREBY PLEDGES TO LENDER, AND GRANTS TO
LENDER A SECURITY INTEREST IN, ANY AND ALL SUCH DEPOSITS AS SECURITY FOR THE
LOAN.
THE TAXES, ASSESSMENTS AND CHARGES FOR PURPOSES OF THIS SECTION 1.4.3
SHALL, IF LENDER SO ELECTS, INCLUDE, WITHOUT LIMITATION, WATER AND SEWER RENTS.
MORTGAGOR SHALL PROCURE AND DELIVER TO LENDER WHEN ISSUED ALL STATEMENTS OR
BILLS FOR SUCH OBLIGATIONS.
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 TAXES, ASSESSMENTS AND SIMILAR
CHARGES THIRTY (30) DAYS PRIOR TO THE DATE THEY BECOME DELINQUENT.
LENDER SHALL
PAY SUCH TAXES, ASSESSMENTS AND OTHER CHARGES AS THEY BECOME DUE TO THE EXTENT
OF THE FUNDS ON DEPOSIT WITH LENDER FROM TIME TO TIME AND PROVIDED MORTGAGOR HAS
DELIVERED TO LENDER THE STATEMENTS OR BILLS THEREFOR. IN MAKING ANY SUCH
PAYMENTS, LENDER SHALL BE ENTITLED TO RELY ON ANY BILL ISSUED IN RESPECT OF ANY
SUCH TAXES, ASSESSMENTS OR CHARGES WITHOUT INQUIRY INTO THE VALIDITY, PROPRIETY
OR AMOUNT THEREOF AND WHETHER DELIVERED TO LENDER BY MORTGAGOR OR OTHERWISE
OBTAINED BY LENDER.
ANY DEPOSITS RECEIVED PURSUANT TO THIS SECTION 1.4.3 SHALL
NOT BE, NOR BE DEEMED TO BE, TRUST 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 1.4.3.
IF ANY EVENT OF DEFAULT
OCCURS, ANY PART OR ALL OF THE AMOUNTS THEN ON DEPOSIT OR THEREAFTER DEPOSITED
WITH LENDER UNDER THIS SECTION 1.4.3 MAY AT LENDER'S OPTION BE APPLIED TO
PAYMENT OF MORTGAGOR'S LIABILITIES IN SUCH ORDER AS LENDER MAY DETERMINE.
1.4.4.
NO CREDIT AGAINST THE INDEBTEDNESS SECURED HEREBY.
MORTGAGOR SHALL NOT CLAIM, DEMAND OR BE ENTITLED TO RECEIVE ANY CREDIT AGAINST
THE AMOUNTS PAYABLE UNDER THE TERMS OF THE GUARANTY OR ON ANY OF MORTGAGOR'S
LIABILITIES FOR ANY OF THE TAXES, ASSESSMENTS OR SIMILAR IMPOSITIONS ASSESSED
AGAINST THE MORTGAGED PROPERTY OR ANY PART THEREOF OR THAT ARE APPLICABLE TO
MORTGAGOR'S LIABILITIES OR TO LENDER'S INTEREST IN THE MORTGAGED PROPERTY.
1.5
MECHANIC'S AND OTHER LIENS.
MORTGAGOR SHALL NOT
PERMIT OR SUFFER ANY MECHANIC'S, LABORER'S, MATERIALMAN'S, STATUTORY OR OTHER
LIEN OR ENCUMBRANCE (OTHER THAN ANY LIEN FOR TAXES AND ASSESSMENTS NOT YET DUE)
TO BE CREATED UPON OR AGAINST THE MORTGAGED PROPERTY, PROVIDED, HOWEVER, THAT
MORTGAGOR MAY IN GOOD FAITH, BY APPROPRIATE PROCEEDING, CONTEST THE VALIDITY,
APPLICABILITY OR AMOUNT OF ANY ASSERTED LIEN AND, PENDING SUCH CONTEST,
MORTGAGOR SHALL NOT BE DEEMED TO BE IN DEFAULT HEREUNDER IF MORTGAGOR SHALL
FIRST OBTAIN AN ENDORSEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO LENDER, TO
THE LOAN POLICY OF TITLE INSURANCE ISSUED TO LENDER INSURING OVER SUCH