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Mortgage, Assignment of Rents, Security Agreement and Fixture Filing Page 15 2.1 Insurance. Borrower shall obtain, pay for and keep in full force and effect during the term of this Security Instrument at its sole cost and expense the policies of insurance required by the Financing Documents. 2.2 Escrows. If an Event of a Default occurs, and upon written request by Governmental Lender, Borrower shall (i) deposit with the Governmental Lender an amount determined by Governmental Lender to cover the amount of taxes and assessments levied against the Premises by any taxing authority (and any penalties, interest or late fees) that are due, delinquent or soon to be due and payable, and pay on the tenth day of each month thereafter an amount determined by Governmental Lender to collect sufficient funds to pay the costs of future installments of taxes and assessments levied against the Premises, and (ii) deposit with the Governmental Lender on the tenth day of each and every month thereafter a deposit to pay the insurance premiums next due on any insurance policies required hereunder (collectively, the “Charges”): (a) Initially a sum such that the amounts to be deposited pursuant to (b) next and such initial sum shall equal the estimated Charges for the next due payment; and (b) Thereafter an amount equal to one-twelfth (1/12th) of the estimated annual Charges due on the Premises. Governmental Lender will, upon the presentation to the Governmental Lender by Borrower of the bills therefor, pay the Charges from such deposits or will upon presentation of receipted bills therefor, reimburse the Borrower for such payments made by Borrower. In the event the deposits on hand shall not be sufficient to pay all of the estimated Charges when the same shall become due from time to time, or the prior deposits shall be less than the currently estimated monthly amounts, then Borrower shall pay to the Governmental Lender within ten (10) days after demand any amount necessary to make up the deficiency. The excess of any such deposits shall be credited to subsequent payments to be made for such items. Governmental Lender may, at its option, without being required so to do, apply any deposits on hand, including but not limited to the deposits made pursuant to this Section and any other deposits made pursuant to the terms of the Financing Documents, to the Indebtedness, in such order and manner as the Governmental Lender may elect. When the Indebtedness has been fully paid any remaining deposits shall be returned to Borrower as its interest may appear. All deposits made pursuant to this Section and any other deposits made pursuant to the terms of the Financing Documents, are hereby pledged as additional security for the Indebtedness, shall be held for the purposes for which made as herein provided, may be held by Governmental Lender or its servicing agent and may be commingled with other funds of the Governmental Lender, or its servicing agent, shall be held without any allowance of interest thereon and shall not be subject to the decision or control of Borrower. Neither Governmental Lender nor its servicing agent shall be liable for any act or omission made or taken in good faith. In making any payments, Governmental Lender or its servicing agent may rely on any statement, bill or estimate procured from or issued by the payee without inquiry into the validity or accuracy of the same. If the taxes shown in the tax statement shall be levied on property more extensive than the Premises, then the amounts escrowed shall be based on the entire tax bill and Borrower shall have no right to require an apportionment and Governmental Lender or its servicing agent may pay the entire tax bill notwithstanding that such taxes pertain in part to other