|
Mortgagor (a) shall contest, in good faith, the existence or amount thereof, the amount of
<br />damages caused thereby or the extent of its liability therefor, by appropriate proceedings which
<br />shall operate during the pendency thereof to prevent (1) the collection of, or other realization
<br />upon the tax, assessment, charge or lien, encumbrance or charge so contested, (ii) the sale,
<br />forfeiture or loss of the Mortgaged Property or any part thereof, and (iii) any interference with
<br />the use or occupancy of the Mortgaged Property or any part thereof, and (b) shall give such
<br />security to Mortgagee as may reasonably be demanded by Mortgagee to ensure compliance with
<br />the foregoing provisions of this paragraph. Mortgagor shall give prompt written notice to
<br />Mortgagee of the commencement of any contest referred to in this paragraph.
<br />1.10 Right of Mortgagee to Enter. Mortgagor will permit Mortgagee and its agents to
<br />enter and to authorize others to enter upon any or all of the Mortgaged Property, at any time and
<br />from time to time, to inspect the same, to perform or observe any covenants, conditions, or terms
<br />which mortgagor shall fail to perform, meet, or comply with, or for any other purpose in connec-
<br />tion with the protection or preservation of Mortgagee's security, without thereby becoming liable
<br />to Mortgagor or any person in possession under Mortgagor. Mortgagee is under no obligation to
<br />exercise the rights permitted by this section. Mortgagor shall reimburse Mortgagee for the cost
<br />of annual inspections of the Mortgaged Property upon demand.
<br />1.11 Financial Statements. Mortgagor shall keep and maintain, at all times, full, true,
<br />and accurate books of accounts, in sufficient detail to show the names of the tenants, if any,
<br />occupying the Mortgaged Property, the rent paid by each such tenant and security deposits, if
<br />any, all adequate to reflect correctly the results of the operation of the Mortgaged Property,
<br />which books and the records relating thereto shall be open to inspection and copying by
<br />Mortgagee or its representative during ordinary business hours, Mortgagor shall furnish to
<br />Mortgagee, within 90 days after the end of each fiscal year of Mortgagor, (1) a balance sheet and
<br />a statement of income, expenses and retained earnings, all in reasonable detail, in form
<br />comparative to those statements and sheets submitted for the previous fiscal years, and otherwise
<br />in form and content satisfactory to Mortgagee and prepared by an independent public accountant
<br />in accordance with generally accepted accounting principles, showing the results of the operation
<br />of the improvements operated or situated upon the Land for such fiscal year and (ii) current
<br />financial statements of Mortgagor and each guarantor, if any, of all or any part of the
<br />Indebtedness, certified by Mortgagor and each such Guarantor to be true and correct. If
<br />Mortgagor is a corporation, partnership, or other entity, Mortgagor shall further supply annual
<br />statements to Mortgagee setting forth the legal, equitable, and beneficial owners of the shares,
<br />partnership interests, or other interests. The statement shall show all encumbrances and
<br />assignments of such interests and shall contain such other information as Mortgagee may require
<br />in order to determine the ownership and control of Mortgagor.
<br />1.12 Hazardous Waste Representations and Warranties.
<br />a. Hazardous Waste Representations and Warranties. To the best of
<br />Mortgagor's knowledge, no hazardous or toxic substances, asbestos, petroleum products and
<br />volatile hydrocarbons are buried or otherwise located on the Mortgaged Property or the
<br />improvements located hereon. Without limiting the foregoing, Mortgagor represents and
<br />6
<br />26
<br />
|