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Attachment A 1073 inaccurate information or statements to the Authority in connection with the loan evidenced by 1074 the Note. 1075 1076 5. PROTECTION OF AUTHORITY’S RIGHTS IN THE PROPERTY. If Borrower 1077 fails to perform the covenants and agreements contained in this Mortgage, or there is a legal 1078 proceeding that may significantly affect the Authority’s rights in the Property (such as a 1079 proceeding in bankruptcy, condemnation or forfeiture), the Authority may do and pay for 1080 whatever is necessary to protect the value of the Property and the Authority’s rights in the 1081 Property. The Authority’s actions may include paying any sums secured by a lien which has 1082 priority over this Mortgage, appearing in court, paying reasonable attorneys fees and entering on 1083 the Property to make repairs. Although the Authority may take action under this paragraph 5, 1084 the Authority is not required to do so. 1085 1086 Any amounts disbursed by the Authority under this paragraph 5 shall become additional 1087 debt of Borrower secured by this Mortgage. Unless Borrower and the Authority agree to other 1088 terms of payment, these amounts shall bear interest from the date of disbursement at a rate equal 1089 to the interest rate on the Note and shall be payable, with interest, upon notice from the 1090 Authority to Borrower requesting payment. 1091 1092 6. INSPECTION. The Authority or its agent may make reasonable entries upon and 1093 inspections of the Property. 1094 1095 7. CONDEMNATION. The proceeds of any award or claim for damages, direct or 1096 consequential, in connection with any condemnation or other taking of any part of the Property, 1097 or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the 1098 Authority. 1099 1100 In the event of a total taking of the Property, the proceeds shall be applied to the sums 1101 secured by this Mortgage, whether or not then due, with any excess paid to Borrower. In the 1102 event of a partial taking of the Property in which the fair market value of the Property 1103 immediately before the taking is equal to or greater than the amount of the sums secured by this 1104 Mortgage immediately before the taking, unless Borrower and the Authority otherwise agree in 1105 writing, if any, the sums secured by this Mortgage shall be reduced by the amount of the 1106 proceeds multiplied by the following fraction: (a) the total amount of the sums secured 1107 immediately before the taking, divided by (b) the fair market value of the Property immediately 1108 before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the 1109 Property in which the fair market value of the Property immediately before the taking is less than 1110 the amount of the sums secured immediately before the taking, unless Borrower and the 1111 Authority otherwise agree in writing or unless applicable law otherwise provides, the proceeds 1112 shall be applied to the sums secured by this Mortgage whether or not the sums are then due. 1113 1114 The Authority acknowledges this Mortgage is subordinate to the liens specifically 1115 referred to in Section 17 hereof. 1116 498884v1 MNI RS275-12 8