REQUESTED BY AGENT.
SECTION 7.03
INSURANCE.
TO MAINTAIN THE POLICIES IN FULL FORCE
AND EFFECT AND TO DILIGENTLY PROSECUTE ALL CLAIMS, AND COMPLY WITH ALL
PROCEDURES AND REQUIREMENTS THEREUNDER.
THE PROCEEDS OF ANY INSURANCE SHALL BE
APPLIED IN ACCORDANCE WITH THE TERMS OF THE PROJECT LOAN MORTGAGE.
SECTION 7.04
APPLICATION OF FUNDS.
TO USE THE PROCEEDS OF THE
PROJECT LOAN SOLELY AND EXCLUSIVELY FOR THE PURPOSES SET FORTH HEREIN.
SECTION 7.05
PROPERTY TAXES.
TO PROMPTLY PAY WHEN DUE (OR TO
CAUSE EACH MEMBER TO PAY WHEN DUE), AND TO PROVIDE (OR CAUSE TO BE PROVIDED TO)
AGENT WITH RECEIPTED BILLS THEREFOR IF REQUESTED BY AGENT AS SOON AS SAID
RECEIPTED BILLS ARE AVAILABLE, ALL PROPERTY TAXES AND, UPON THE FAILURE OF THE
OWNER(S) OF THE PORTION OF LOT 15 NOT OWNED BY BORROWER TO PAY ALL REAL ESTATE
TAXES AND OTHER IMPOSITIONS ON LOT 15 PRIOR TO THE DUE DATE THEREOF, TO PROMPTLY
PAY ALL SUCH TAXES AND IMPOSITIONS.
NOTWITHSTANDING THE FOREGOING OR ANYTHING
HEREIN TO THE CONTRARY, BORROWER OR THE APPLICABLE MEMBER SHALL HAVE THE RIGHT
TO CONTEST THE VALIDITY OR APPLICATION OF ANY PROPERTY TAXES BY
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APPROPRIATE LEGAL PROCEEDINGS, SO LONG AS:
(1) SUCH LEGAL PROCEEDINGS SHALL BE
PROSECUTED WITH DILIGENCE BY BORROWER (OR SUCH MEMBER), SHALL OPERATE TO PREVENT
ANY TAKING OR CLOSING OR SHUTTING DOWN OF THE PREMISES OR ANY PORTION THEREOF BY
ANY GOVERNMENTAL AUTHORITY, AND SHALL HAVE THE EFFECT OF STAYING ANY TYPE OF
SALE OR FORFEITURE OF THE PREMISES OR ANY PART THEREOF FOR FAILURE TO COMPLY,
(2) BORROWER (OR SUCH MEMBER) SHALL HAVE DEPOSITED WITH OR DELIVERED TO AGENT,
AS APPLICABLE, CASH COLLATERAL, A BOND OR SUCH OTHER SECURITY REASONABLY
SATISFACTORY TO AGENT, ON SUCH TERMS AS MAY BE REASONABLY SATISFACTORY TO AGENT
AND (IF APPLICABLE) IN AN AMOUNT AS MAY BE DEEMED REASONABLY NECESSARY BY AGENT
(TAKING INTO ACCOUNT AMOUNTS PROVIDED FOR IN THE APPLICABLE BUDGET FOR SUCH
PROPERTY TAXES AND AMOUNTS REMAINING TO BE FUNDED FROM THE APPLICABLE LOAN WITH
RESPECT THERETO) TO PAY FOR SUCH CONTEST AND TO PAY ANY SUCH PROPERTY TAXES TO
THE EXTENT BORROWER (OR SUCH MEMBER) HAS NOT PAID SUCH PROPERTY TAXES TO THE
APPLICABLE GOVERNMENTAL AUTHORITY), AND ANY FINES, PENALTIES, CHARGES AND
INTEREST THEREON WHICH MAY BE AWARDED OR ASSESSED (WHICH AMOUNT SHALL BE
INCREASED AT THE REQUEST OF AGENT WHEN AGENT DETERMINES (IN ITS REASONABLE
JUDGMENT) THAT A GREATER AMOUNT MAY BE REQUIRED TO MAKE SUCH PAYMENTS), (3) SUCH
PROCEEDING SHALL NOT SUBJECT AGENT, ANY LENDER, BORROWER OR ANY MEMBER TO THE
RISK OF ANY CRIMINAL LIABILITY, (4) NO NOTICED DEFAULT OR EVENT OF DEFAULT SHALL
THEN EXIST UNDER ANY PROJECT LOAN DOCUMENT, (5) BORROWER (OR SUCH MEMBER) GIVES
AGENT (X) REASONABLY CONTINUOUS NOTICE UPON THE COMMENCEMENT AND DURING THE
CONTINUATION OF ANY SUCH PROCEEDING OF THE STATUS THEREOF, AND (Y) CONFIRMATION
ON SUCH PERIODIC BASIS AS AGENT MAY REQUEST OF THE CONTINUING SATISFACTION OF
THE CONDITIONS SET FORTH IN CLAUSES (1) THROUGH (4) ABOVE, AND (6) BORROWER (OR
SUCH MEMBER)