SECTION
7.2 HEREOF).
IF BORROWER PAYS OR CAUSES TO BE PAID ALL TAXES AND OTHER CHARGES
AND PROVIDES A COPY 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) 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.
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 WHICH MIGHT MATERIALLY ADVERSELY AFFECT
BORROWER'S CONDITION (FINANCIAL OR OTHERWISE) OR BUSINESS OR THE PROPERTY.
5.1.4
ACCESS TO PROPERTY. BORROWER SHALL PERMIT AGENTS, REPRESENTATIVES
AND EMPLOYEES OF LENDER TO INSPECT THE PROPERTY OR ANY PART THEREOF AT
REASONABLE HOURS UPON REASONABLE