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Section 5.2. Negative Covenants. The Borrower agrees that, without the prior written consent of the Lender, it will not: (a) Create or permit to be created or allow to exist any further mortgage, encumbrance, security interest or other lien upon the Land or Improvements, except those shown in the title insurance policy referred to in Section III hereof and approved by the Lender, and except mechanics' and materialmen's liens in respect of obligations which are not due (provided that such liens are actually junior and subordinate to the lien of the Mortgage and said title insurance policy insures against loss by reason of such liens); (b) Agree or consent to any material changes in the Plans or Drawings and Specifications, or to any material change orders or to any material changes of the terms and provisions of the contracts or subcontracts delivered pursuant to Article II; (c) Incorporate in the Project any materials, fixtures or property which are subject to the claims of any person other than Lender, whether pursuant to conditional sales contract, security agreement, lease, mortgage or otherwise. (d) The Borrower shall be in default under or in breach of any of the terms of the Security Documents, and such default or breach shall not be cured or waived by the Lender within the period or periods of grace, if any, applicable thereto. ARTICLE 6 Events of Default Section 6.1. Events of Default. Each of the following shall constitute an Event of Default: (a) The Borrower shall fail to pay interest on or principal of the Note when due. (b) The title to the Land is not reasonably satisfactory to the Lender and the Lender shall have given written notice of its objections to the Borrower and such objec- tions shall have remained uncured for 20 calendar days after such notice, regardless of whether the objection existed at the time of any Advance. The Project is materially damaged or destroyed by fire or other casualty and the loss, in the reasonable judgment of the Lender, is not adequately covered by insurance actually collected or in the process of collection. (c) (d) Execution shall have been levied against the Land or any other property subject to the Mortgage or any creditor's suit to enforce a judgment or other lien against the Land or such other property shall have been bought and (in either case) shall I1