OF THE RECEIPT EVIDENCING THE PAYMENT THEREOF TO LENDER, THEN LENDER SHALL
REIMBURSE BORROWER, PROVIDED THAT THERE ARE THEN SUFFICIENT PROCEEDS IN THE TAX
AND INSURANCE ESCROW FUND AND PROVIDED THAT THE TAXES ARE BEING PAID PURSUANT TO
SECTION 7.2.
UPON WRITTEN REQUEST OF BORROWER, IF LENDER HAS PAID SUCH TAXES
PURSUANT TO SECTION 7.2 HEREOF, LENDER SHALL PROVIDE BORROWER WITH EVIDENCE THAT
SUCH TAXES HAVE BEEN PAID.
BORROWER SHALL NOT SUFFER AND SHALL PROMPTLY CAUSE
TO BE PAID AND DISCHARGED ANY LIEN OR CHARGE WHATSOEVER WHICH MAY BE OR BECOME A
LIEN OR CHARGE AGAINST THE PROPERTY, AND SHALL PROMPTLY PAY FOR ALL UTILITY
SERVICES PROVIDED TO THE PROPERTY.
AFTER PRIOR WRITTEN NOTICE TO LENDER,
BORROWER, AT ITS OWN EXPENSE, MAY CONTEST BY APPROPRIATE LEGAL PROCEEDING,
PROMPTLY INITIATED AND CONDUCTED IN GOOD FAITH AND WITH DUE DILIGENCE, THE
AMOUNT OR VALIDITY OR APPLICATION IN WHOLE OR IN PART OF ANY TAXES OR OTHER
CHARGES, PROVIDED THAT (I)
BORROWER IS PERMITTED TO DO SO UNDER THE PROVISIONS
OF ANY MORTGAGE OR DEED OF TRUST SUPERIOR IN LIEN TO THE MORTGAGE; (II) SUCH
PROCEEDING SHALL BE PERMITTED UNDER AND BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF ANY OTHER INSTRUMENT TO WHICH BORROWER IS SUBJECT AND SHALL NOT
CONSTITUTE A DEFAULT THEREUNDER AND SUCH PROCEEDING SHALL BE CONDUCTED IN
ACCORDANCE WITH ALL APPLICABLE STATUTES, LAWS AND ORDINANCES; (III) NEITHER THE
PROPERTY NOR ANY PART THEREOF OR INTEREST THEREIN WILL BE IN IMMEDIATE DANGER OF
BEING SOLD, FORFEITED, TERMINATED, CANCELLED OR LOST; (IV) BORROWER SHALL
PROMPTLY UPON FINAL DETERMINATION THEREOF PAY THE AMOUNT OF ANY SUCH TAXES OR
OTHER CHARGES, TOGETHER WITH ALL COSTS, INTEREST AND PENALTIES WHICH MAY BE
PAYABLE IN CONNECTION THEREWITH; (V) SUCH PROCEEDING SHALL SUSPEND THE
COLLECTION OF SUCH CONTESTED TAXES OR OTHER CHARGES FROM THE PROPERTY; AND
(VI) BORROWER SHALL FURNISH SUCH SECURITY AS MAY BE REQUIRED IN THE PROCEEDING,
OR AS MAY BE REASONABLY REQUESTED BY LENDER, TO INSURE THE PAYMENT OF ANY SUCH
TAXES OR OTHER CHARGES, TOGETHER WITH ALL INTEREST AND PENALTIES THEREON.
LENDER MAY PAY OVER ANY SUCH CASH DEPOSIT OR PART THEREOF HELD BY LENDER TO THE
CLAIMANT ENTITLED THERETO AT ANY TIME WHEN, IN THE REASONABLE JUDGMENT OF
LENDER, THE ENTITLEMENT OF SUCH CLAIMANT IS ESTABLISHED OR THE PROPERTY (OR PART
THEREOF OR INTEREST THEREIN) SHALL BE IN IMMINENT DANGER OF BEING SOLD,
FORFEITED, TERMINATED, CANCELLED OR LOST OR THERE SHALL BE ANY DANGER OF THE
LIEN OF THE MORTGAGE BEING PRIMED BY ANY RELATED LIEN OTHER THAN A LIEN IN
RESPECT OF TAXES BEING CONTESTED IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION 5.1.2.
PROVIDED NO EVENT OF DEFAULT THEN EXISTS, ANY SECURITY DEPOSITED
WITH LENDER PURSUANT TO THIS SECTION 5.1.2 MAY BE USED TO SATISFY THE RELATED
TAXES OR OTHER CHARGES WITH ANY EXCESS AFTER THE SATISFACTION OF SAME TO BE
RETURNED TO BORROWER.
5.1.3
LITIGATION.
BORROWER SHALL GIVE PROMPT WRITTEN NOTICE
TO LENDER UPON OBTAINING INFORMATION OF ANY LITIGATION OR GOVERNMENTAL
PROCEEDINGS PENDING OR THREATENED AGAINST BORROWER AND/OR