THE REASONABLE CONTROL OF
BORROWER AND BORROWER IS DILIGENTLY PURSUING REINSTITUTION OF SUCH WORK;
(M)
IF A LIEN OTHER THAN A PERMITTED ENCUMBRANCE IS FILED AGAINST THE
PROPERTY, UNLESS SUCH LIEN IS PROMPTLY CONTESTED IN GOOD FAITH BY BORROWER AS
PERMITTED IN ACCORDANCE WITH SECTION 9.02(B);
(N)
IF ANY OF THE ASSUMPTIONS CONTAINED IN THE NON-CONSOLIDATION
OPINION DELIVERED TO LENDER IN CONNECTION WITH THE LOAN, OR IN ANY UPDATE
THEREOF OR ADDITIONAL NON-CONSOLIDATION OPINION DELIVERED SUBSEQUENT TO THE
CLOSING OF THE LOAN, IS OR SHALL BECOME UNTRUE IN ANY MATERIAL RESPECT;
(Q)
IF BORROWER FAILS TO PAY THE PROHIBITED PREPAYMENT FEE WHEN
REQUIRED;
(R)
EXCEPT FOR THE SPECIFIC DEFAULTS SET FORTH IN THIS SECTION 11.01,
IF ANY OTHER DEFAULT OCCURS HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT WHICH IS
NOT CURED (I) IN THE CASE OF ANY DEFAULT WHICH CAN BE CURED BY THE PAYMENT OF A
SUM OF MONEY, WITHIN FIVE (5) DAYS AFTER WRITTEN NOTICE FROM LENDER TO BORROWER,
OR (II) IN THE CASE OF ANY OTHER DEFAULT, WITHIN THIRTY (30)
64
DAYS AFTER WRITTEN NOTICE FROM LENDER TO BORROWER; PROVIDED THAT IF A DEFAULT
UNDER CLAUSE (II) CANNOT REASONABLY BE CURED WITHIN SUCH THIRTY (30) DAY PERIOD
AND BORROWER HAS RESPONSIBLY COMMENCED TO CURE SUCH DEFAULT PROMPTLY UPON NOTICE
THEREOF FROM LENDER AND THEREAFTER DILIGENTLY PROCEEDS TO CURE SAME, SUCH THIRTY
(30) DAY PERIOD SHALL BE EXTENDED FOR SO LONG AS IT SHALL REQUIRE BORROWER, IN
THE EXERCISE OF DUE DILIGENCE, TO CURE SUCH DEFAULT, BUT IN NO EVENT SHALL THE
ENTIRE CURE PERIOD BE MORE THAN SIXTY (60) DAYS; OR
(s)
If
(i) Guarantor fails to satisfy the Net Worth Test or Liquidity
Test, (ii) the Loan to Value Ratio is greater than 75%, and (iii) Borrower shall
have failed to deposit the Additional Collateral with Lender within ten calendar
days of Lender's request.
Section 11.02
Remedies.
If an Event of Default occurs, Lender may, at
its option, and without prior notice or demand, do and hereby is authorized and
empowered by Borrower so to do, any or all of the following:
(A)
ACCELERATION.
LENDER MAY DECLARE THE ENTIRE UNPAID PRINCIPAL
BALANCE OF THE LOAN TO BE IMMEDIATELY DUE AND PAYABLE.
IF SUCH ACCELERATION
TAKES PLACE PRIOR TO THE OPEN DATE, AN AMOUNT EQUAL TO THE PROHIBITED PREPAYMENT
FEE SHALL BE ADDED TO BALANCE OF THE DEBT.
(B)
RECOVERY OF UNPAID SUMS.
LENDER MAY, FROM TIME TO TIME, TAKE
LEGAL ACTION TO RECOVER ANY SUMS AS THE SAME BECOME DUE, WITHOUT REGARD TO
WHETHER OR NOT THE LOAN SHALL BE ACCELERATED AND WITHOUT PREJUDICE TO LENDER'S
RIGHT THEREAFTER TO ACCELERATE THE LOAN OR EXERCISE ANY OTHER REMEDY, IF SUCH
SUMS REMAIN UNCOLLECTED.
(C)
FORECLOSURE.
LENDER MAY INSTITUTE PROCEEDINGS, JUDICIAL OR
OTHERWISE, FOR THE COMPLETE OR PARTIAL FORECLOSURE OF THE SECURITY INSTRUMENT OR
THE COMPLETE OR PARTIAL SALE OF THE PROPERTY UNDER POWER OF SALE OR UNDER ANY
APPLICABLE PROVISION OF LAW.
IN CONNECTION WITH ANY SUCH PROCEEDING, LENDER MAY
SELL THE PROPERTY AS AN ENTIRETY