CASE OF TENANT
IMPROVEMENTS, WHEN REQUIRED UNDER THE LEASES.
BORROWER SHALL COMPLETE EACH
RESERVE ITEM IN A GOOD AND WORKMANLIKE MANNER, USING ONLY NEW MATERIALS OF THE
SAME OR BETTER QUALITY THAN THAT BEING REPLACED.
ALL RESERVE ITEMS SHALL BE
PERFORMED IN ACCORDANCE WITH, AND UPON COMPLETION SHALL COMPLY WITH, ALL
REQUIREMENTS OF LAW (INCLUDING WITHOUT LIMITATION OBTAINING AND MAINTAINING IN
EFFECT ALL NECESSARY PERMITS AND GOVERNMENTAL APPROVALS) AND ALL APPLICABLE
INSURANCE REQUIREMENTS.
(B)
CONTRACTS.
LENDER SHALL HAVE THE RIGHT, AT
ITS OPTION, TO APPROVE ALL CONTRACTS OR WORK ORDERS WITH MATERIALMEN, MECHANICS,
SUPPLIERS, SUBCONTRACTORS, CONTRACTORS OR OTHER PARTIES PROVIDING LABOR OR
MATERIALS IN CONNECTION WITH THE RESERVE ITEMS THAT PROVIDE FOR TOTAL PAYMENTS
OF $50,000 OR MORE TO THE PARTY PROVIDING SUCH LABOR OR MATERIALS.
(C)
ENTRY ONTO PROPERTY.
IN ORDER TO PERFORM
INSPECTIONS OR, FOLLOWING AN EVENT OF DEFAULT, TO COMPLETE RESERVE ITEMS WHICH
BORROWER HAS FAILED TO PERFORM, BORROWER HEREBY GRANTS LENDER AND ITS AGENTS THE
RIGHT, FROM TIME TO TIME, TO ENTER ONTO THE PROPERTY.
(D)
LENDER REMEDY FOR FAILURE TO PERFORM.
IN
ADDITION TO LENDER'S REMEDIES FOLLOWING AN EVENT OF DEFAULT, BORROWER
ACKNOWLEDGES THAT LENDER SHALL HAVE THE RIGHT (BUT NOT THE OBLIGATION) TO
COMPLETE OR PERFORM THE RESERVE ITEMS FOR WHICH AMOUNTS HAVE BEEN RESERVED UNDER
THIS LOAN AGREEMENT (OR PAY THE LEASING COMMISSIONS AS APPLICABLE) AND FOR SUCH
PURPOSE, BORROWER HEREBY APPOINTS LENDER ITS ATTORNEY-IN-FACT WITH FULL POWER OF
SUBSTITUTION (AND WHICH SHALL BE DEEMED TO BE COUPLED WITH AN INTEREST AND
IRREVOCABLE UNTIL THE LOAN IS PAID IN FULL AND THE SECURITY INSTRUMENT IS
DISCHARGED OF RECORD, WITH BORROWER HEREBY RATIFYING ALL THAT ITS SAID ATTORNEY
SHALL DO BY VIRTUE THEREOF):
(I) TO COMPLETE OR UNDERTAKE SUCH WORK IN THE NAME
OF BORROWER; (II) TO PROCEED UNDER EXISTING CONTRACTS OR TO TERMINATE EXISTING
CONTRACTS (EVEN WHERE A TERMINATION PENALTY MAY BE INCURRED) AND EMPLOY SUCH
CONTRACTORS, SUBCONTRACTORS, WATCHMAN, AGENTS, ARCHITECTS AND INSPECTORS AS
LENDER' DETERMINES NECESSARY OR DESIRABLE FOR COMPLETION OF SUCH WORK; (III) TO
MAKE ANY ADDITIONS, CHANGES AND CORRECTIONS TO THE SCOPE OF THE WORK AS LENDER
DEEMS NECESSARY OR DESIRABLE FOR TIMELY COMPLETION; (IV) TO PAY, SETTLE OR
COMPROMISE ALL EXISTING BILLS AND CLAIMS WHICH ARE OR MAY BECOME LIENS AGAINST
THE PROPERTY OR AS MAY BE NECESSARY OR DESIRABLE FOR COMPLETION OF SUCH WORK;
(V) TO EXECUTE ALL APPLICATIONS AND CERTIFICATES IN THE NAME OF BORROWER WHICH
MAY BE REQUIRED TO OBTAIN PERMITS AND APPROVALS FOR SUCH WORK OR COMPLETION OF
SUCH WORK; (VI) TO PROSECUTE AND DEFEND ALL ACTIONS OR PROCEEDINGS IN CONNECTION
WITH THE REPAIR OR IMPROVEMENTS TO THE PROPERTY; AND (VII) TO DO ANY AND EVERY
ACT WHICH BORROWER MIGHT DO IN ITS OWN BEHALF TO FULFILL THE TERMS OF BORROWER'S
OBLIGATIONS UNDER THIS LOAN AGREEMENT.
AMOUNTS EXPENDED BY LENDER WHICH EXCEED
AMOUNTS HELD IN THE RESERVE ACCOUNTS SHALL BE ADDED TO THE MAXIMUM LOAN AMOUNT,
SHALL BE IMMEDIATELY DUE AND PAYABLE, AND SHALL BEAR INTEREST AT THE DEFAULT
RATE FROM THE DATE OF DISBURSEMENT