Agenda Package - 10-1-12 Reg. Meeting

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G'i 0 ARTICLE VII COVENANTS OF THE PURCHASER SECTION 7.1. Installation of Additional Improvements The Purchaser may at any time and from time to time, in the sole discretion of the Purchaser, and at its own expense, construct real property improvements and install items of equipment or other personal property in or upon any portion of the Mortgaged Property that does not materially impair the effective use, nor materially decrease the value, of the Mortgaged Property; provided, however, that the Purchaser shall repair and restore any and all damage resulting from the construction, installation, modification or removal of any such items. All such items provided by the Purchaser shall be subject to the lien of the Deed of Trust. SECTION 7.2. Access to the Mortgaged Property The Purchaser agrees that the Seller and its agents, shall have the right, at all reasonable times during normal business hours of the Purchaser upon the furnishing of reasonable notice to the Purchaser under the circumstances, to enter upon the Mortgaged Property or any portion thereof to examine and inspect the same. The Purchaser further agrees that the Seller and the Seller' successors, assigns or designees shall have such rights of access to the Mortgaged Property as may be reasonably necessary to cause the proper maintenance of the Mortgaged Property in the event of failure by the Purchaser to perform its obligations hereunder. No right of inspection shall be deemed to impose on the Seller any duty or obligation whatsoever to undertake any inspection, and no inspection made by the Seller shall be deemed to impose upon the Seller any duty or obligation to identify any defects in the Mortgaged Property or to notify any person with respect thereto. SECTION 7.3. Maintenance, Utilities, Taxes and Assessments (a) Subject to the Enforcement Limitation, the Purchaser shall provide for the repair and replacement of any portion of the Mortgaged Property required on account of ordinary wear and tear or want of care. (b) Subject to the Enforcement Limitation, the Purchaser shall also pay, or provide for the payment of, all taxes and assessments, including, but not limited to, utility charges of any type or nature levied, assessed or charged against any portion of the Mortgaged Property; provided, however, that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the Purchaser shall be obligated to pay only such installments as are required to be paid as and when the same become due. (c) The Purchaser may, at the Purchaser's expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom; provided, however, that prior to such nonpayment, the Purchaser shall furnish to the Seller an opinion of counsel acceptable to the Seller to the effect that, by nonpayment of any such items, the interest of the Seller in the Mortgaged Property will not be materially endangered and that all or any portion of the Mortgaged Property will not be subject to loss or forfeiture. Otherwise, subject to the Enforcement Limitation, the Purchaser shall promptly pay such taxes, assessments or charges or make provisions for the payment thereof. 13