Common use of Changes in Method of Taxation Clause in Contracts

Changes in Method of Taxation. 6.1 In the event of the passage after the date hereof of any law applicable to the Mortgaged Premises or any part thereof, (i) deducting from the value of the Mortgaged Premises, for the purposes of taxation, any Lien thereon, or changing in any way the laws for the taxation of mortgages or debts secured by mortgages or the manner of collection of any such taxes, or (ii) imposing a tax, either directly or indirectly, on this Mortgage or any other documents evidencing or securing the Liabilities, in each case, the result of which affects adversely the Mortgagee, the Mortgagee shall have the right to declare, by written notice delivered to Mortgagor, that an Event of Default will occur hereunder one hundred twenty (120) days from the giving of such written notice unless the Mortgagor is exempt from such tax or, if not exempt from such tax, is permitted by law to pay the whole of such tax (or to provide funds to the Mortgagee to pay such taxes) and assumes as an obligation and Liability secured hereby the obligation to make all payments (or provide funds to the Mortgagee to pay such taxes) of any tax so imposed until full payment of the Liabilities. The Mortgagor shall promptly notify the Mortgagee of the occurrence of any of the events set forth in clauses (i) or (ii) of this Section 6.1. 6.2 The Mortgagor shall not have, nor will claim nor demand nor be entitled to receive, any credit or credits by virtue of the payment of taxes as provided herein against the Liabilities or the other sums payable as provided herein and in the Securities secured hereby, and such taxes shall be paid without abatement of or deduction from, and without counterclaim or setoff against such principal, interest and other sums, for any reason, including, without limitation, for so much of the taxes assessed against the Mortgaged Premises as is equal to the tax rate applied to the amount due on this Mortgage or any part thereof, and no deduction shall otherwise be made or claimed from the taxable value of the Mortgaged Premises, or any part thereof, by reason of the indebtedness secured by this Mortgage.