THE CASE
OF ANY SUCH MUTILATION, UPON SURRENDER AND CANCELLATION OF SUCH NOTE OR OTHER
LOAN DOCUMENT, MORTGAGOR WILL ISSUE, SOLELY AT MORTGAGEE'S COST, IN LIEU
THEREOF, A REPLACEMENT NOTE OR A REPLACEMENT OF SUCH OTHER LOAN DOCUMENT, DATED
THE DATE OF SUCH LOST, STOLEN, DESTROYED OR MUTILATED NOTE OR OTHER LOAN
DOCUMENT IN THE SAME PRINCIPAL AMOUNT THEREOF AND OTHERWISE OF LIKE TENOR.
ARTICLE 6
DUE ON SALE/ENCUMBRANCE
SECTION 6.1
MORTGAGEE RELIANCE.
MORTGAGOR ACKNOWLEDGES THAT MORTGAGEE HAS
EXAMINED AND RELIED ON THE EXPERIENCE OF MORTGAGOR AND ITS GENERAL PARTNERS,
MEMBERS AND PRINCIPALS IN OWNING AND OPERATING PROPERTIES SUCH AS THE PROPERTY
IN AGREEING TO MAKE THE LOAN, AND WILL CONTINUE TO RELY ON MORTGAGOR'S OWNERSHIP
OF THE PROPERTY AS A MEANS OF MAINTAINING THE VALUE OF THE PROPERTY AS SECURITY
FOR REPAYMENT OF THE INDEBTEDNESS AND THE PERFORMANCE OF THE OBLIGATIONS.
MORTGAGOR ACKNOWLEDGES THAT MORTGAGEE HAS A VALID INTEREST IN MAINTAINING THE
VALUE OF THE PROPERTY SO AS TO ENSURE THAT, SHOULD MORTGAGOR DEFAULT IN THE
REPAYMENT OF THE INDEBTEDNESS OR THE PERFORMANCE OF THE OBLIGATIONS, MORTGAGEE
CAN RECOVER THE INDEBTEDNESS BY A SALE OF THE PROPERTY.
SECTION 6.2
NO TRANSFER .
MORTGAGOR SHALL NOT PERMIT OR SUFFER ANY TRANSFER
TO OCCUR, UNLESS PERMITTED AS A PERMITTED TRANSFER OR A TRANSFER OTHERWISE
PERMITTED UNDER THE LOAN AGREEMENT OR UNLESS MORTGAGEE SHALL CONSENT THERETO IN
WRITING.
SECTION 6.3
MORTGAGEE'S RIGHTS.
MORTGAGEE SHALL NOT BE REQUIRED TO
DEMONSTRATE ANY ACTUAL IMPAIRMENT OF ITS SECURITY OR ANY INCREASED RISK OF
DEFAULT HEREUNDER IN ORDER TO DECLARE THE INDEBTEDNESS IMMEDIATELY DUE AND
PAYABLE UPON A TRANSFER WITHOUT MORTGAGEE'S CONSENT.
THIS PROVISION SHALL APPLY
TO EVERY TRANSFER, OTHER THAN ANY PERMITTED TRANSFER OR ANY TRANSFER OTHERWISE
PERMITTED PURSUANT TO THE LOAN AGREEMENT, REGARDLESS OF WHETHER VOLUNTARY OR
NOT, OR WHETHER OR NOT MORTGAGEE HAS CONSENTED TO ANY PREVIOUS TRANSFER.
-12-
ARTICLE 7
RIGHTS AND REMEDIES UPON DEFAULT
SECTION 7.1
REMEDIES.
UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF ANY
EVENT OF DEFAULT, MORTGAGOR AGREES THAT MORTGAGEE MAY TAKE SUCH ACTION, WITHOUT
NOTICE OR DEMAND, AS IT DEEMS ADVISABLE TO PROTECT AND ENFORCE ITS RIGHTS
AGAINST MORTGAGOR AND IN AND TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE
FOLLOWING ACTIONS, EACH OF WHICH MAY BE PURSUED CONCURRENTLY OR OTHERWISE, AT
SUCH TIME AND IN SUCH ORDER AS MORTGAGEE MAY DETERMINE, IN ITS SOLE DISCRETION,
WITHOUT IMPAIRING OR OTHERWISE AFFECTING THE OTHER RIGHTS AND REMEDIES OF
MORTGAGEE:
(A)
DECLARE THE ENTIRE UNPAID INDEBTEDNESS TO BE IMMEDIATELY DUE AND PAYABLE;
(B)
INSTITUTE PROCEEDINGS, JUDICIAL OR OTHERWISE, FOR THE COMPLETE FORECLOSURE
OF THIS MORTGAGE UNDER ANY APPLICABLE PROVISION OF LAW, IN WHICH CASE THE
PROPERTY OR ANY INTEREST THEREIN MAY BE SOLD FOR CASH OR UPON CREDIT IN ONE OR
MORE PARCELS OR IN SEVERAL INTERESTS OR PORTIONS AND IN ANY ORDER OR MANNER;
(C)
WITH OR WITHOUT ENTRY, TO THE EXTENT PERMITTED AND PURSUANT TO THE
PROCEDURES PROVIDED BY APPLICABLE LAW, INSTITUTE PROCEEDINGS FOR THE PARTIAL
FORECLOSURE OF THIS MORTGAGE FOR THE PORTION OF THE