QUALIFIED PROFESSIONAL ACCEPTABLE TO LENDER PRIOR TO THE
DISBURSEMENT OF ANY AMOUNTS FROM THE REPLACEMENT RESERVE SUBACCOUNT.
BORROWER
SHALL PAY THE EXPENSE OF THE INSPECTION AS REQUIRED HEREUNDER, WHETHER SUCH
INSPECTION IS CONDUCTED BY LENDER OR BY AN INDEPENDENT QUALIFIED PROFESSIONAL.
(H)
THE REPLACEMENTS AND ALL MATERIALS, EQUIPMENT, FIXTURES, OR ANY
OTHER ITEM COMPRISING A PART OF ANY REPLACEMENT SHALL BE CONSTRUCTED, INSTALLED
OR COMPLETED, AS APPLICABLE, FREE AND CLEAR OF ALL MECHANIC'S, MATERIALMEN'S OR
OTHER LIENS.
(I)
BEFORE EACH DISBURSEMENT FROM THE REPLACEMENT RESERVE SUBACCOUNT,
LENDER MAY REQUIRE BORROWER TO PROVIDE LENDER WITH A SEARCH OF TITLE TO THE
PROPERTY EFFECTIVE TO THE DATE OF THE DISBURSEMENT, WHICH SEARCH SHOWS THAT NO
MECHANIC'S OR MATERIALMEN'S LIENS OR OTHER LIENS OF ANY NATURE HAVE BEEN PLACED
AGAINST THE PROPERTY SINCE THE DATE OF RECORDATION OF THE MORTGAGE (OTHER THAN
PERMITTED ENCUMBRANCES) AND THAT TITLE TO THE PROPERTY IS FREE AND CLEAR OF ALL
LIENS (OTHER THAN THE LIEN OF THE MORTGAGE AND OTHER PERMITTED ENCUMBRANCES).
(J)
ALL REPLACEMENTS SHALL COMPLY WITH ALL APPLICABLE LEGAL
REQUIREMENTS OF ALL GOVERNMENTAL AUTHORITIES HAVING JURISDICTION OVER THE
PROPERTY AND APPLICABLE INSURANCE REQUIREMENTS INCLUDING, WITHOUT LIMITATION,
APPLICABLE BUILDING CODES, SPECIAL USE PERMITS, ENVIRONMENTAL REGULATIONS, AND
REQUIREMENTS OF INSURANCE UNDERWRITERS.
(K)
IN ADDITION TO ANY INSURANCE REQUIRED UNDER THE LOAN DOCUMENTS,
BORROWER SHALL PROVIDE OR CAUSE TO BE PROVIDED WORKMEN'S COMPENSATION INSURANCE,
BUILDER'S RISK, AND PUBLIC LIABILITY INSURANCE AND OTHER INSURANCE TO THE EXTENT
REQUIRED UNDER APPLICABLE LAW IN CONNECTION WITH A PARTICULAR REPLACEMENT.
ALL
SUCH POLICIES SHALL BE IN FORM AND AMOUNT REASONABLY SATISFACTORY TO LENDER AND
SHALL COMPLY WITH THE REQUIREMENTS OF SECTION 7.1 HEREOF.
CERTIFIED COPIES OF
SUCH POLICIES SHALL BE DELIVERED TO LENDER.
40
3.13.4
FAILURE TO MAKE REPLACEMENTS.
(A)
IT SHALL BE AN EVENT OF DEFAULT UNDER THIS
AGREEMENT IF BORROWER FAILS TO COMPLY WITH ANY PROVISION OF THIS SECTION 3.13
AND SUCH FAILURE IS NOT CURED WITHIN THIRTY (30) DAYS AFTER NOTICE FROM LENDER;
PROVIDED, HOWEVER, THAT IF SUCH EVENT OF DEFAULT IS SUSCEPTIBLE OF CURE BUT
CANNOT REASONABLY BE CURED WITHIN SUCH 30-DAY PERIOD, AND BORROWER SHALL HAVE
COMMENCED TO CURE SUCH DEFAULT WITHIN SUCH 30-DAY PERIOD AND THEREAFTER
DILIGENTLY AND EXPEDITIOUSLY PROCEEDS TO CURE THE SAME, SUCH 30-DAY PERIOD SHALL
BE EXTENDED FOR AN ADDITIONAL PERIOD OF TIME AS IS REASONABLY NECESSARY FOR
BORROWER IN THE EXERCISE OF DUE DILIGENCE TO CURE SUCH DEFAULT, SUCH ADDITIONAL
PERIOD NOT TO EXCEED 60 DAYS.
UPON THE OCCURRENCE OF AN EVENT OF DEFAULT,
LENDER MAY USE THE REPLACEMENT RESERVE FUND (OR ANY PORTION THEREOF) FOR ANY
PURPOSE, INCLUDING BUT NOT LIMITED TO COMPLETION OF THE REPLACEMENTS AS PROVIDED
IN SECTIONS 3.13.3(C) AND 3.13.3(D), OR FOR ANY OTHER REPAIR OR REPLACEMENT TO
THE PROPERTY OR TOWARD PAYMENT OF THE DEBT IN SUCH ORDER, PROPORTION AND
PRIORITY AS LENDER MAY DETERMINE IN ITS SOLE DISCRETION.
LENDER'S RIGHT TO
WITHDRAW AND APPLY THE REPLACEMENT RESERVE FUNDS SHALL BE IN ADDITION TO ALL
OTHER RIGHTS AND REMEDIES PROVIDED TO LENDER UNDER THIS AGREEMENT AND