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SECTION 1. 1. OBSERVANCE OF COVENANTS. The Mortgagor shall duly and <br />punctually perform and observe all of the covenants, agreements and provisions contained <br />herein, or in any other instrument given as security for the payi-rent of the Nolte. <br />SECTION 1.02. MAINTENANCE- REPAIRS. Subject to the pawl sins of Sections 1.05 <br />and 2.03 hereof, the Mortgagor shall keep and maintain the Mortgaged Property 'in good <br />condition, repair and operating condition free from any waste or misuse, and will comply with all <br />requirements of law, municipal ordinances and regulations, restrictions and covenants affecting <br />the Mortgaged Property and its use, and will promptly repair or restore any building, <br />improvements or structures now or hereafter located on the Lind which t—aty become damaged or <br />destroyed to their condition prior to any such damage or delstruction., The Mortgagor, shall not <br />acquiesce in any rezoning classification, modificatillon or restriction affecting the Land, without <br />the prior written consent of the Mortgagee, which consent shall not be unreasonably wl"thheld. <br />SECTION 1.0-3. PAYMENT OF UTILITY CHARGES,, TAXES AND ASSESSMENTS. <br />The Mortgagor shall, before any penalty attaches thereto, pay or cause to be paid all charges <br />made for electricity,, gas., heat, water, sewer and other utilities furnished or used in connection <br />with the Mortgaged Property, and all taxes, assessments, levies and ellicUmbranices of every <br />nature heretofore or hereafter assessed against the Mortgaged Property and upon demand will <br />furnish the Mortgagee recelpted bills evidencing suich payment. Whienevier any assessments may <br />be paid in installments, the Mortgagor may pay the same on an installment baslis�. <br />SECTION 1, 04, LIENS. Except for liens and encumbrances, if any, listed on Exhibit "B" <br />attached hereto or consented to in writing by or granted to the Mortgagee (""Permitted <br />Encumbrances"), the Mortgagor will keep the Mortgaged Property free from all liens (other <br />than liens for taxes, assessments and mechanics' liens, not yet due and payable) and <br />encumbrances of every nature whatsoever heretofore or hereafter arising and, upon written <br />demand of the Mortgagee. <br />., the Mortgagor will pay and procure the release of' any such liens or <br />encumbrances. <br />SECTION 1.05. RIGHT TO CONTEST. Nothing in Sections 1.102, 1.03 and 1.014 shall <br />require the payment or discharge of any obligations 'imposed upon the Mortgagor by Sections <br />1.02, 1.03 and 1.04 so long as the Mortgagor shall diligently and in good faith and at the <br />Mortgagor's own expense contest the same or the vall"dity thereof by appropriate legal <br />proceeding which shall operate to prevent the collection thereof or other realization there on and <br />the sale or forfeiture of the Mortgaged Property or any part thereof to, satisfy the same; provided, <br />however, that during such contest the Mortgagor shall, at the reasonable request of the <br />Mortgagee, provide security satisfactory to the Mortgagee-, assuring the discharge of the <br />Mortgagor's obligation(s) under Sections 1.02, 1.03 and 1,,04 and of any additional charge, <br />penalty or expense arising from or incurred as a result of such contest; and provided further, <br />however, that if at any time payment of any obligation imposed upon the Mortgagor by this <br />Section shall become necessary to prevent the delivery of a tax deed conveying the Land or any <br />portion thereof because of non-payment, then the Mortgagor shall play the same in sufficient time <br />to prevent the delivery of such tax deed. <br />SECTION 1.06. COMPLIANCE WITH LAW. The Mortgagor will promptly car play with <br />all present and future laws, ordinances, rules and regulations of any governmental authority <br />2150387vl 4 <br />