MINIMUM AMOUNT
REQUIRED BY LAW; AND MORTGAGEE SHALL, UNLESS MORTGAGOR IS OTHERWISE IN DEFAULT
HEREUNDER OR UNDER ANY LOAN DOCUMENT, APPLY SAID FUNDS TO THE PAYMENT OF, OR AT
THE SOLE OPTION OF MORTGAGEE RELEASE SAID FUNDS TO MORTGAGOR FOR THE APPLICATION
TO AND PAYMENT OF, SUCH SUMS, TAXES, ASSESSMENTS, LEVIES, CHARGES, AND INSURANCE
PREMIUMS. UPON DEFAULT BY MORTGAGOR HEREUNDER OR UNDER ANY SECURED OBLIGATION,
MORTGAGEE MAY APPLY ALL OR ANY PART OF SAID SUMS TO ANY SECURED OBLIGATION
AND/OR TO CURE SUCH DEFAULT, IN WHICH EVENT MORTGAGOR SHALL BE REQUIRED TO
RESTORE ALL AMOUNTS SO APPLIED, AS WELL AS TO CURE ANY OTHER EVENTS OR
CONDITIONS OF DEFAULT NOT CURED BY SUCH APPLICATION.
UPON ASSIGNMENT OF THIS
MORTGAGE, MORTGAGEE SHALL HAVE THE RIGHT TO ASSIGN ALL AMOUNTS COLLECTED AND IN
ITS POSSESSION TO ITS ASSIGNEE WHEREUPON MORTGAGEE SHALL BE RELEASED FROM ALL
LIABILITY WITH RESPECT THERETO. WITHIN NINETY-FIVE (95) DAYS FOLLOWING FULL
REPAYMENT OF THE SECURED OBLIGATIONS (OTHER THAN FULL REPAYMENT OF THE SECURED
OBLIGATIONS AS A CONSEQUENCE OF A FORECLOSURE OR CONVEYANCE IN LIEU OF
FORECLOSURE OF THE LIENS AND SECURITY INTERESTS SECURING THE SECURED
OBLIGATIONS) OR AT SUCH EARLIER TIME AS MORTGAGEE MAY ELECT, THE BALANCE OF ALL
AMOUNTS COLLECTED AND IN MORTGAGEE'S POSSESSION SHALL BE PAID TO MORTGAGOR AND
NO OTHER PARTY SHALL HAVE ANY RIGHT OR CLAIM THERETO.
5.4
PERFORMANCE OF SECURED OBLIGATIONS.
MORTGAGOR SHALL
PROMPTLY PAY AND PERFORM EACH SECURED OBLIGATION WHEN DUE.
5.5
LIENS, ENCUMBRANCES AND CHARGES.
MORTGAGOR SHALL
IMMEDIATELY DISCHARGE ANY LIEN (OTHER THAN PERMITTED LIENS (AS DEFINED IN THE
LOAN AGREEMENT)) NOT APPROVED BY MORTGAGEE IN WRITING THAT HAS OR MAY ATTAIN
PRIORITY OVER THIS MORTGAGE.
SUBJECT TO THE PROVISIONS OF THE LOAN AGREEMENT
REGARDING MECHANICS' LIENS (INCLUDING, WITHOUT LIMITATION, SECTION 7.11),
MORTGAGOR SHALL PAY WHEN DUE ALL OBLIGATIONS SECURED BY OR WHICH MAY BECOME
LIENS AND ENCUMBRANCES WHICH SHALL NOW OR HEREAFTER ENCUMBER OR APPEAR TO
ENCUMBER ALL OR ANY PART OF THE SUBJECT PROPERTY OR COLLATERAL, OR ANY INTEREST
THEREIN, WHETHER SENIOR OR SUBORDINATE HERETO.
5.6
DAMAGES; INSURANCE AND CONDEMNATION PROCEEDS.
(A)
THE FOLLOWING (WHETHER NOW EXISTING OR HEREAFTER
ARISING) ARE ALL ABSOLUTELY AND IRREVOCABLY ASSIGNED BY MORTGAGOR TO MORTGAGEE
AND, AT THE REQUEST OF MORTGAGEE, SHALL BE PAID DIRECTLY TO MORTGAGEE: (I) ALL
AWARDS OF DAMAGES AND ALL OTHER COMPENSATION PAYABLE DIRECTLY OR INDIRECTLY BY
REASON OF A CONDEMNATION OR PROPOSED CONDEMNATION FOR PUBLIC OR PRIVATE USE
AFFECTING ALL OR ANY PART OF, OR ANY INTEREST IN, THE SUBJECT PROPERTY OR
COLLATERAL; (II) ALL OTHER CLAIMS AND AWARDS FOR DAMAGES TO, OR DECREASE IN
VALUE OF, ALL OR ANY PART OF, OR ANY INTEREST IN, THE SUBJECT PROPERTY OR
COLLATERAL; (III) ALL PROCEEDS OF ANY INSURANCE POLICIES (WHETHER OR NOT
EXPRESSLY REQUIRED BY MORTGAGEE TO BE MAINTAINED BY MORTGAGOR, INCLUDING, BUT
NOT LIMITED TO, EARTHQUAKE INSURANCE AND TERRORISM INSURANCE, IF ANY) PAYABLE BY
REASON OF LOSS SUSTAINED TO ALL OR ANY PART OF THE SUBJECT PROPERTY OR
COLLATERAL; AND (IV) ALL INTEREST WHICH MAY ACCRUE ON ANY OF