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 OR BORROWER TO
THE RISK OF CIVIL OR CRIMINAL LIABILITY (OTHER THAN
50
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 IS MADE A PARTY
RELATING TO THE LOAN DOCUMENTS AND/OR THE PROPERTY OR LENDER'S INTEREST THEREIN
OR IN WHICH IT BECOMES NECESSARY TO DEFEND OR UPHOLD THE LIEN OF THIS SECURITY
INSTRUMENT OR ANY OTHER LOAN DOCUMENT, BORROWER SHALL, ON DEMAND, REIMBURSE
LENDER FOR ALL EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS'
FEES AND DISBURSEMENTS) INCURRED BY LENDER IN CONNECTION THEREWITH, AND SUCH
SUM, TOGETHER WITH INTEREST THEREON AT THE DEFAULT RATE FROM AND AFTER SUCH
DEMAND UNTIL FULLY PAID, SHALL CONSTITUTE A PART OF THE DEBT.
SECTION 2.08.
USE OF THE PROPERTY.
BORROWER WILL USE, OR CAUSE TO BE USED, THE
PROPERTY FOR SUCH USE AS IS PERMITTED PURSUANT TO APPLICABLE LEGAL REQUIREMENTS
INCLUDING, WITHOUT LIMITATION, UNDER THE CERTIFICATE OF OCCUPANCY APPLICABLE TO
THE PROPERTY, AND WHICH IS REQUIRED BY THE LOAN DOCUMENTS.
BORROWER SHALL NOT
SUFFER OR PERMIT THE PROPERTY OR ANY PORTION THEREOF TO BE USED BY THE PUBLIC,
ANY TENANT, OR ANY PERSON NOT SUBJECT TO A LEASE, IN A MANNER AS IS REASONABLY
LIKELY TO IMPAIR BORROWER'S TITLE TO