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1.7 Inspection. Mortgagee, or its agents, shall have the right to enter upon the
<br /> Mortgaged Property during ordinary business hours for the purposes of inspecting the
<br /> Mortgaged Property or any part thereof. Mortgagee shall have no duty, however, to
<br /> make such inspection. Mortgagee, or its agents, shall also have the right during ordinary
<br /> business hours to examine the books and records of Mortgagor pertaining to the
<br /> Mortgaged Property and to make extracts therefrom and copies thereof. The parties agree
<br /> that Mortgagee's right to inspect the books and records of Mortgagor, as described in this
<br /> provision, relates solely to the Mortgaged Property.
<br /> 1.8 Protection of Mortgagee's Security. If Mortgagor fails to perform any of
<br /> the covenants and agreements contained in this Mortgage and such failure shall continue
<br /> beyond any applicable notice and cure period contained in Article Two hereof or if any
<br /> action or proceeding is commenced which does or may adversely affect the Mortgaged
<br /> Property or the interest of Mortgagor or Mortgagee therein, or the title of Mortgagor
<br /> thereto, then Mortgagee, at Mortgagee's option, may perform such covenants and
<br /> agreements, defend against such action or proceeding, or otherwise act as Mortgagee
<br /> deems necessary to protect its interest. In the event that,after damage to or destruction of
<br /> the Mortgaged Property or condemnation of a portion of the Mortgaged Property or a sale
<br /> under threat thereof, the proceeds are used to restore the Mortgaged Property, and the
<br /> insurance, sale or condemnation proceeds which are paid to Mortgagee are not sufficient
<br /> to pay for such restoration, Mortgagee may nevertheless effect the restoration. Any
<br /> amounts disbursed or costs incurred by Mortgagee pursuant to this Section, including
<br /> interest and reasonable attorney's fees, shall become additional Obligations of Mortgagor
<br /> 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
<br /> date of disbursement or incurrence at the rate set forth in the Note unless payment of
<br /> interest at such rate would be contrary to law, in which event such amounts shall bear
<br /> interest at the highest rate permitted by law. Mortgagee shall, at its option, be subrogated
<br /> to any encumbrance, lien, claim or demand, and to all the rights and securities for the
<br /> payment thereof, paid or discharged with the principal sum secured hereby or by
<br /> Mortgagee under the provisions hereof, and any such subrogation rights shall be
<br /> additional and cumulative security for this Mortgage. Nothing contained in this Section
<br /> shall require Mortgagee to incur any expense or do any act hereunder, and Mortgagee
<br /> shall not be liable to Mortgagor for any damages or claims arising out of action taken by
<br /> Mortgagee pursuant to this paragraph.
<br /> 1.9 Hazardous Materials. Mortgagor hereby represents and warrants to
<br /> Mortgagee that to the best of Mortgagor's knowledge, the Mortgaged Property has not at
<br /> any time been used for storage, transfer, transportation or disposal of hazardous
<br /> substances, hazardous wastes,pollutants, contaminants or similar substances (collectively
<br /> "Hazardous Substances"), or for the discharge of the same into the environment in
<br /> violation of any law, regulation, or judicial or administrative order or judgment; and the
<br /> Mortgaged Property is not contaminated by, and does 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
<br /> claims, losses, damages, actions, costs and expenses of any kind, including without
<br /> limitation, court costs and reasonable attorneys fees, in connection with any Hazardous
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