11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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and Mortgaged Property as it, in its discretion,may deem to be desirable for its uses and purposes,subject, however,to the following: (a) All alterations to the Project Buildings shall be located within the boundary lines of the Land and shall become a part of the Mortgaged Property; (b) Alterations to the Project Buildings shall not substantially impair the structural strength or utility of any Project Buildings or significantly alter the character or purpose or detract from the value or operating efficiency of the Project Facilities or Mortgaged Property, and the Borrower shall have delivered to the Trustee a Certificate of the Authorized Borrower Representative to such effect; and (c) The alterations shall not significantly impair the revenue producing capacity of the Project Facilities and the Mortgaged Property, and the Borrower shall have delivered to the Trustee a Certificate of the Authorized Borrower Representative to such effect. The Trustee may, in its discretion, require the Borrower to furnish an opinion of an Independent Engineer,at the expense of the Borrower,to the effect of paragraph(b)if the alterations shall exceed$50,000 in the aggregate. All work in connection with any alterations shall be done promptly and in good workmanlike manner and in compliance with the building and zoning laws of the City and other governmental subdivisions wherein the Project Facilities are situated, and with all laws, ordinances, orders, rules, regulations and requirements of all federal,state and municipal governments and the appropriate departments,commissions, boards and officers thereof, and shall not violate the provisions of any policy of insurance covering the Project Facilities;and the work shall be prosecuted with reasonable dispatch,unavoidable delays excepted. Any work involving more than$100,000 of cost shall be insured by a policy of builders risk in conformance with the requirements of Section 5.09(d)or similar insurance. During the construction or installation of such alterations the Borrower shall maintain the Project Facilities free of all mechanics liens or other encumbrances except for Permitted Encumbrances, and unless waived by a Majority of Holders, no disbursement of funds held by the Trustee shall be made for the payment of costs that may be the subject of a mechanic's lien unless prior to the payment of such costs mechanic lien waivers applicable to the costs shall be delivered to the Disbursing Agent. Section 5.06 Installation of Equipment. The Borrower may, from time to time in its discretion and at its own cost and expense, install or place other equipment and tangible personal property in the Project Buildings and on the Land,subject to the lien of the Mortgage and the Subordinate Mortgage. In the event that a lessor,vendor or purchase money lender is entitled to and does remove any equipment or other property, any damage resulting to the Project Facilities therefrom shall be repaired and the Project Facilities restored to their previous condition at the sole expense of the party effecting such removal or at the sole expense of the Borrower. Section 5.07 Removal of Equipment. If no Default exists,the Borrower shall have the right to remove Equipment from the Mortgaged Property and have the Equipment released from the lien of the Mortgage and the Subordinate Mortgage, as follows: (a) The Borrower shall have the privilege from time to time in the ordinary course of business of substituting equipment and related property for any Equipment constituting a part of the Mortgaged Property, provided that the effect of such -31-