BALANCE OF THE MORTGAGED PROPERTY FREE AND CLEAR OF
ALL LIENS, SECURITY INTERESTS, CHARGES AND ENCUMBRANCES WHATSOEVER EXCEPT THOSE
EXPRESSLY PERMITTED IN WRITING BY LENDER, IF ANY (SUCH LIENS, SECURITY
INTERESTS, CHARGES AND ENCUMBRANCES EXPRESSLY PERMITTED IN WRITING BEING
HEREINAFTER REFERRED TO AS THE "PERMITTED ENCUMBRANCES"); (C) MORTGAGOR HAS GOOD
RIGHT, FULL POWER AND LAWFUL AUTHORITY TO MORTGAGE AND PLEDGE THE MORTGAGED
PROPERTY AS PROVIDED HEREIN; (D) UPON THE OCCURRENCE OF AN EVENT OF DEFAULT,
LENDER MAY AT ALL TIMES PEACEABLY AND QUIETLY ENTER UPON, HOLD, OCCUPY AND ENJOY
THE MORTGAGED PROPERTY IN ACCORDANCE WITH THE TERMS HEREOF; AND (E) MORTGAGOR
WILL MAINTAIN AND PRESERVE THE LIEN OF THIS MORTGAGE AS A FIRST AND PARAMOUNT
LIEN ON THE MORTGAGED PROPERTY SUBJECT ONLY TO THE PERMITTED ENCUMBRANCES UNTIL
MORTGAGOR'S LIABILITIES HAVE BEEN PAID IN FULL.
1.3.
COMPLIANCE WITH LAWS AND OTHER RESTRICTIONS. MORTGAGOR
COVENANTS, REPRESENTS AND WARRANTS THAT THE LAND AND THE IMPROVEMENTS AND THE
USE THEREOF PRESENTLY COMPLY IN ALL MATERIAL RESPECTS WITH, AND WILL DURING THE
FULL TERM OF THIS MORTGAGE CONTINUE TO COMPLY IN ALL MATERIAL RESPECTS WITH, ALL
APPLICABLE RESTRICTIVE COVENANTS, ZONING AND SUBDIVISION ORDINANCES AND BUILDING
CODES, LICENSES, HEALTH AND ENVIRONMENTAL LAWS AND REGULATIONS AND ALL OTHER
APPLICABLE LAWS, ORDINANCES, RULES AND REGULATIONS.
IF ANY FEDERAL, STATE OR
OTHER GOVERNMENTAL BODY OR ANY COURT ISSUES ANY NOTICE OR ORDER TO THE EFFECT
THAT THE MORTGAGED PROPERTY OR ANY PART THEREOF IS NOT IN COMPLIANCE WITH ANY
SUCH COVENANT, ORDINANCE, CODE, LAW OR REGULATION, MORTGAGOR WILL PROMPTLY
PROVIDE LENDER WITH A COPY OF SUCH NOTICE OR ORDER AND WILL IMMEDIATELY COMMENCE
AND DILIGENTLY PERFORM ALL SUCH ACTIONS AS ARE NECESSARY TO COMPLY THEREWITH OR
OTHERWISE CORRECT SUCH NON-COMPLIANCE.
MORTGAGOR SHALL NOT, WITHOUT THE PRIOR
WRITTEN CONSENT OF LENDER, PETITION FOR OR OTHERWISE SEEK ANY CHANGE IN THE
ZONING ORDINANCES OR OTHER PUBLIC OR PRIVATE RESTRICTIONS APPLICABLE TO THE
MORTGAGED PROPERTY ON THE DATE HEREOF.
1.4.TAXES AND OTHER CHARGES.
1.4.1.
TAXES AND ASSESSMENTS.
MORTGAGOR SHALL PAY PROMPTLY
WHEN DUE ALL TAXES, ASSESSMENTS, RATES, DUES, CHARGES, FEES, LEVIES, FINES,
IMPOSITIONS, LIABILITIES, OBLIGATIONS, LIENS AND ENCUMBRANCES OF EVERY KIND AND
NATURE WHATSOEVER NOW OR HEREAFTER IMPOSED, LEVIED OR ASSESSED UPON OR AGAINST
THE MORTGAGED PROPERTY OR ANY PART THEREOF, OR UPON OR AGAINST THIS MORTGAGE OR
MORTGAGOR'S LIABILITIES OR UPON OR AGAINST THE INTEREST OF LENDER IN THE
MORTGAGED PROPERTY, AS WELL AS ALL TAXES, ASSESSMENTS AND OTHER GOVERNMENTAL
CHARGES LEVIED AND IMPOSED BY THE UNITED STATES OF AMERICA OR ANY STATE, COUNTY,
5
MUNICIPALITY OR OTHER TAXING AUTHORITY UPON OR IN RESPECT OF THE MORTGAGED
PROPERTY OR ANY PART THEREOF; PROVIDED, HOWEVER, THAT UNLESS COMPLIANCE WITH
APPLICABLE LAWS REQUIRES THAT TAXES, ASSESSMENTS OR OTHER CHARGES MUST BE PAID
AS A CONDITION TO PROTESTING OR CONTESTING THE AMOUNT THEREOF, MORTGAGOR MAY IN
GOOD FAITH, BY APPROPRIATE PROCEEDINGS COMMENCED WITHIN NINETY (90) DAYS OF THE
DUE DATE OF SUCH AMOUNTS AND THEREAFTER DILIGENTLY PURSUED, CONTEST THE
VALIDITY, APPLICABILITY OR AMOUNT OF ANY ASSERTED TAX, ASSESSMENT OR OTHER
CHARGE AND PENDING