|
7.5 Use of Loan Proceeds; Preservation and Maintenance of Property; Compliance with Laws.
<br /> Trustor covenants that it shall use the proceeds of the Loan (the"Loan Proceeds") solely for purposes
<br /> authorized by the Loan Documents. Trustor covenants that it shall keep the Land and Improvements in
<br /> good repair and condition, and from time to time shall make necessary repairs, renewals and replacements
<br /> thereto so that the Property shall be preserved and maintained. Trustor covenants that it shall comply with
<br /> all federal, state and local laws, regulations, ordinances and rules applicable to the Property, including
<br /> without limitation all applicable requirements of state and local building codes and regulations and all
<br /> applicable statutes and regulations relating to accessibility for the disabled. Trustor shall not remove,
<br /> demolish or materially alter any Improvement without Beneficiary's consent, shall complete or restore
<br /> promptly and in good and workmanlike manner any building, fixture or other improvement which may be
<br /> constructed, damaged, or destroyed thereon, and shall pay when due all claims for labor performed and
<br /> materials furnished therefor. Trustor shall use the Land and the Improvements solely for purposes
<br /> authorized by the Loan Documents, shall not commit or allow waste of the Property, and shall not commit
<br /> or allow any act upon or use of the Property which would violate any applicable law or order of any
<br /> governmental authority, nor shall Trustor bring on or keep any article on the Property or cause or allow any
<br /> condition to exist thereon which could invalidate or which would be prohibited by any insurance coverage
<br /> required to be maintained on the Property pursuant to the Loan Documents.
<br /> 7.6 Restrictions on Conveyance and Encumbrance;Acceleration. It shall be an Event of
<br /> Default hereunder if the Property or the Improvements, or any part thereof or interest therein is sold,
<br /> assigned, conveyed, transferred, hypothecated, leased, licensed,or encumbered in violation of the Loan
<br /> Documents or if any other transfer occurs in violation of the Loan Documents. If any such transfer shall
<br /> occur in violation of such requirements,without limiting the provisions of Section 8 hereof, all obligations
<br /> secured by this Deed of Trust, irrespective of the maturity dates of such obligations, shall at the option of
<br /> Beneficiary, and without demand, immediately become due and payable, subject to any applicable cure
<br /> period.
<br /> 7.7 Inspections; Books and Records. Beneficiary and its agents and representatives shall
<br /> have the right at any reasonable time upon reasonable notice to enter upon the Land and inspect the
<br /> Property to ensure compliance with the Loan Documents; provided however, that Trustor shall have the
<br /> right to accompany Beneficiary during any such inspection. Trustor shall maintain complete and accurate
<br /> books of account and other records (including copies of supporting bills and invoices) adequate to
<br /> document the use of the Loan Proceeds and the operation of the Property, together with copies of all
<br /> written contracts, Leases and other instruments which affect the Property. The books, records, contracts,
<br /> Leases and other instruments shall be subject to examination and inspection by Beneficiary at any
<br /> reasonable time following two business days prior notice.
<br /> 7.8 Charges, Liens, Taxes and Assessments. Trustor shall pay before delinquency all taxes,
<br /> levies, assessments and other charges affecting the Property that are (or if not paid may become) a lien on
<br /> all or part of the Property. Trustor may, at Trustor's expense, contest the validity or application of any tax,
<br /> levy, assessment or charge affecting the Property by appropriate legal proceedings promptly initiated and
<br /> conducted in good faith and with due diligence, provided that(i) Beneficiary is reasonably satisfied that
<br /> neither the Property nor any part thereof or interest therein will be in danger of being sold,forfeited, or lost
<br /> as a result of such contest, and (ii)Trustor shall have posted a bond or furnished other security as may
<br /> reasonably be required from time to time by Beneficiary; and provided further that Trustor shall timely make
<br /> any payment necessary to prevent a lien foreclosure, sale, forfeiture or loss of the Property.
<br /> 2002455.2 6
<br />
|