Agenda Package - 10-1-12 Reg. Meeting

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A SECTION 7.4. Modification of the Mortgaged Property The Purchaser shall, in its sole discretion and at its own expense, have the right to make additions, modifications and improvements to any portion of the Mortgaged Property if such additions, modifications or improvements are necessary or beneficial for the use of the Mortgaged Property. Such additions, modifications and improvements shall not in any way damage any of the Mortgaged Property (unless such damage is to be repaired as provided in Section 6.1) or cause the Mortgaged Property to be used for purposes other than those authorized under the provisions of law, and the Mortgaged Property, upon completion of any additions, modifications and improvements made pursuant to this Section, shall be of a value which is not less than the value of the Mortgaged Property immediately prior to the making of such additions, modifications and improvements. The Project, as so modified, shall be subject to the lien of the Deed of Trust. Except for Permitted Encumbrances, the Purchaser shall not permit any lien to be established or remain against the Mortgaged Property for labor or materials furnished in connection with any additions, modifications or improvements made by the Purchaser pursuant to this Section; provided, however, that if any such lien is established, the Purchaser may, at its own expense and in its name, in good faith contest any lien filed or established against the Mortgaged Property, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom, provided that the Purchaser shall famish to the Seller full security against any loss or forfeiture which might arise from the nonpayment of any such item in form satisfactory to the Seller. SECTION 7.5. Encumbrances Except as provided in this Article (including, without limitation, Section 7.4 and this Section), the Purchaser shall not, directly or indirectly, create, incur, assume or suffer to exist any pledge, lien, charge, encumbrance or claim, as applicable, on or with respect to the Mortgaged Property, other than Permitted Encumbrances. Except as expressly provided in this Article and subject to the Enforcement Limitation, the Purchaser shall promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such pledge, lien, charge, encumbrance or claim for which it is responsible if the same shall arise at any time; provided, however, that the Purchaser may contest any such lien, charge, encumbrance or claim if it desires to do so and if it provides the Seller with full security against any loss or forfeiture which might arise from the nonpayment of any such item in form satisfactory to the Seller. [SECTION 7.6. Conveyance to Central Carolina Community College Within sixty (60) days of payment by the Purchaser of the final Installment Payment, the Purchaser shall convey the Mortgaged Property to Central Carolina Community College. 14