FORCE AND EFFECT OR IS NULL AND VOID, OR IF THE LIENS AND SECURITY
INTERESTS PURPORTED TO BE CREATED BY ANY OF THE LOAN DOCUMENTS SHALL CEASE TO BE
VALID, PERFECTED LIEN;
9.1.9
JUDGMENTS.
ONE OR MORE JUDGMENTS OR DECREES SHALL BE ENTERED
AGAINST THE BORROWER, THE PROPERTY OWNER INVOLVING A LIABILITY (NOT PAID OR
FULLY COVERED BY A REPUTABLE AND SOLVENT INSURANCE COMPANY) AND SUCH JUDGMENTS
AND DECREES EITHER SHALL BE FINAL AND NON-APPEALABLE OR SHALL NOT BE VACATED,
DISCHARGED OR STAYED OR BONDED PENDING APPEAL FOR ANY PERIOD OF SIXTY (60)
CONSECUTIVE DAYS, AND THE AGGREGATE AMOUNT OF ALL SUCH JUDGMENTS EXCEEDS
$50,000.00;
9.1.10
INDICTMENT; FORFEITURE.
THE INDICTMENT OF, OR INSTITUTION OF ANY
LEGAL PROCESS OR PROCEEDING AGAINST, A MARC PRINCIPAL, THE BORROWER, THE
PROPERTY OWNER, OR ANY OTHER MARC ENTITY UNDER ANY APPLICABLE LAW WHERE THE
RELIEF, PENALTIES, OR REMEDIES SOUGHT OR AVAILABLE INCLUDE THE FORFEITURE OF ANY
THEIR RESPECTIVE PROPERTIES AND/OR THE IMPOSITION OF ANY STAY OR OTHER ORDER,
THE EFFECT OF WHICH COULD REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE
EFFECT.
9.1.11
[DEFAULT ON OTHER LOAN.
A DEFAULT UNDER THAT CERTAIN LOAN
AGREEMENT, DATED OF EVEN DATE HEREOF, BETWEEN THE FIRST UNION LENDER AND
.]
9.2
Grace Periods and Notice.
As to each of the foregoing events the
following provisions relating to grace periods and notice shall apply:
9.2.1
FAILURE TO PROPERLY APPLY OPERATING CASH FLOW OR CAPITAL PROCEEDS
AND OTHER MONETARY DEFAULTS.
AS TO A DEFAULT UNDER SECTION 9.1.1 OR 9.1.2 OR
9.1.7 HEREOF, THERE SHALL BE A 10 BUSINESS DAY GRACE PERIOD FOLLOWING NOTICE
FROM THE FIRST UNION LENDER OF SUCH DEFAULT.
A-31
9.2.2
NONMONETARY DEFAULTS.
(A)
AS TO NON-MONETARY DEFAULT UNDER SECTION 7.6, OR WITH RESPECT TO
THE BREACH OF ANY OF THE NEGATIVE COVENANTS SET FORTH IN ARTICLE 8 (OTHER THAN
SECTION 8.3), THERE SHALL BE A 10 BUSINESS DAY GRACE PERIOD FOLLOWING NOTICE
FROM THE FIRST UNION LENDER OF SUCH DEFAULT;
(B)
AS TO A DEFAULT UNDER SECTION 8.3, THERE SHALL BE NO GRACE PERIOD;
(C)
AS TO ANY OTHER NON-MONETARY DEFAULT EXCEPT SECTION 9.1.7, UNLESS
THERE IS A SPECIFIC SHORTER OR LONGER GRACE PERIOD PROVIDED FOR IN THIS LOAN
AGREEMENT OR IN ANOTHER LOAN DOCUMENT, THERE SHALL BE A 30 DAY GRACE PERIOD
FOLLOWING NOTICE FROM THE FIRST UNION LENDER OR, IF SUCH DEFAULT WOULD
REASONABLY REQUIRE MORE THAN 30 DAYS TO CURE OR REMEDY, SUCH LONGER PERIOD OF
TIME AS MAY BE REASONABLY REQUIRED SO LONG AS THE BORROWER OR THE PROPERTY OWNER
SHALL COMMENCE REASONABLE ACTIONS TO REMEDY OR CURE THE DEFAULT WITHIN 30 DAYS
FOLLOWING SUCH NOTICE AND SHALL DILIGENTLY PROSECUTE SUCH CURATIVE ACTION TO
COMPLETION WITHIN SUCH 90 DAY PERIOD.
HOWEVER, WHERE THERE IS AN EMERGENCY
SITUATION IN WHICH THERE IS DANGER TO PERSON OR PROPERTY SUCH CURATIVE ACTION
SHALL BE COMMENCED AS PROMPTLY AS POSSIBLE.
AS TO BREACHES OF WARRANTIES AND
REPRESENTATIONS (OTHER THAN THOSE RELATED TO FINANCIAL INFORMATION) THERE SHALL
BE A 30 DAY GRACE PERIOD FOLLOWING NOTICE FROM THE FIRST