|
therefrom and copies thereof. The parties agree that Mortgagee’s rightto inspect the books and
<br />records of Mortgagor, as described in this provision, relates solely to the Mortgaged Property.
<br />1.8.Protection of Mortgagee’s Security
<br />.If Mortgagor fails to perform any of the
<br />covenants and agreements contained in this Mortgage andsuch failure shall continue beyond any
<br />applicable notice and cure period contained in Article Two hereof or if any action or proceeding
<br />is commenced which does or may adversely affect the Mortgaged Property or the interest of
<br />Mortgagor or Mortgagee therein, or the title of Mortgagor thereto, then Mortgagee, at
<br />Mortgagee’s option, may perform such covenants and agreements, defend against such action or
<br />proceeding, or otherwise act as Mortgagee deems necessary to protect its interest. In the event
<br />that, after damage to or destruction of the Mortgaged Property or condemnation of a portion of
<br />the Mortgaged Property or a sale under threat thereof, the proceeds are used to restore the
<br />Mortgaged Property, and the insurance, sale or condemnation proceeds which arepaid to
<br />Mortgagee are not sufficient to pay for such restoration, Mortgagee may nevertheless effect the
<br />restoration. Any amounts disbursed or costs incurred by Mortgagee pursuant to this Section,
<br />including interest and reasonable attorney’s fees, shall become additional Obligations of
<br />Mortgagor secured by this Mortgage. All amounts disbursed or costs incurred by Mortgagee
<br />pursuant to this paragraph shall be payable upon demand, and shall bear interest from the date of
<br />disbursement or incurrence at the rate set forth in the Note unless payment of interest at such rate
<br />would be contrary to law, in which event such amounts shall bear interest at the highest rate
<br />permitted by law. Mortgagee shall, at its option, be subrogated to any encumbrance, lien, claim
<br />or demand, and to all the rights and securities for the payment thereof, paid or discharged with
<br />the principal sum secured hereby or by Mortgagee under the provisions hereof, and any such
<br />subrogation rights shall be additional and cumulative security for this Mortgage. Nothing
<br />contained in this Section shall require Mortgagee to incur any expense or do any act hereunder,
<br />and Mortgagee shall not be liable to Mortgagor for any damages or claims arising out of action
<br />taken by Mortgagee pursuant to this paragraph.
<br />1.9.Hazardous Materials.Mortgagor hereby represents and warrants to Mortgagee
<br />that the Mortgaged Property has not at any time been used for storage, transfer, transportation or
<br />disposal of hazardous substances, hazardous wastes, pollutants, contaminantsor similar
<br />substances (collectively “Hazardous Substances”), or for the discharge of the same into the
<br />environment in violation of any law, regulation, or judicial or administrative order or judgment;
<br />and the Mortgaged Property is not contaminated by, anddoes not contain, any Hazardous
<br />Substances. Mortgagor will not use or permit the use of the Mortgaged Property for such
<br />purposes. Mortgagor will fully indemnify Mortgagee and defend Mortgagee against any claims,
<br />losses, damages, actions, costs and expenses of any kind, including without limitation, court
<br />costs and reasonable attorneys’fees, in connection with any Hazardous Substances now or
<br />hereafter located on the Mortgaged Property or any other violation of any federal, state or local
<br />environmental statute, ordinance, rule or regulation (“Environmental Laws”). This indemnity
<br />shall not apply to the extent that the willful act or omission of the Mortgagee contributes to the
<br />actual or threatened discharge, dispersal, release, storage, treatment, generation, disposal or
<br />escape of the Hazardous Substances. The indemnity provisions of this Section shall survive the
<br />foreclosure or other termination of this Mortgage.
<br />7
<br />477340v3 EL185-40
<br />
<br />
|