COLLATERAL MORTGAGES. Upon the failure of Borrower or Guarantor to perform any term, covenant or agreement contained in Section 5.04 of this Agreement, such failure shall not be deemed an Event of Default, provided that within forty-five (45) days thereof after notice thereof (or such longer period not exceeding an additional 30 days to enable Lender to complete an environmental assessment and/or appraisal, and provided further that such delay is not caused by Borrower), Borrower shall cause to be granted a first priority mortgage lien, mortgage deed or deed of trust (each, a "Collateral Mortgage") in favor of each Lender on the Collateral Mortgage Properties to secure payment of Note. The Collateral Mortgage Properties must at all times have an aggregate Collateral Mortgage Value equal to 150% of the indebtedness evidenced by the Note ("Collateral Mortgage Loan to Value Ratio"). Each Collateral Mortgage Property shall secure a principal sum not to exceed the Collateral Mortgage Value of such property. Lender, in its sole and absolute discretion, may permit a subordinate priority mortgage lien, mortgage deed or deed of trust (each a "Subordinate Collateral Mortgage") to be granted to each Lender on Collateral Mortgage Properties in lieu of up to one-third (%) of the first priority Collateral Mortgages, provided that (i) the Collateral Mortgage Value of such Collateral Mortgage Property exceeds the aggregate of all Liens and other encumbrances by a ratio of at least 2 to 1, before giving effect to such Subordinate Collateral Mortgage; (ii) the Collateral Mortgage Value of such Collateral Mortgage Property exceeds the aggregate of all Liens and other encumbrances by a ratio of at least 1 to .75, after giving effect to such Subordinate Collateral Mortgage; and (iii) Borrower maintains the required Collateral Mortgage Loan to Value Ratio, after giving effect to such Subordinate Collateral Mortgage. The form and substance of each Collateral Mortgage shall be subject to the reasonable approval of each Lender and its counsel. The execution and delivery of each Collateral Mortgage shall be subject to the prior receipt and approval of the following: (i) an appraisal satisfactory to Lender performed by a state licensed or certified appraiser approved by Lender, at Borrower's sole cost and expense; (ii) a title report and commitment to issue a title insurance policy insuring the lien priority of the Collateral Mortgage subject only to such exceptions as counsel for Lender shall approve and payment of all fees, expenses and premiums in order to cause such policy to be issued at the closing thereof; (iii) policies of insurance reasonably satisfactory to the Lender in form, company and amount and which shall contain coverage, required by the terms of the Collateral Mortgage, and (iv) an environmental assessment of the Property to be encumbered, (at Borrower's sole cost and expense), prepared by an environmental consultant retained by Lender such assessment to be acceptable to Lender, in its sole and absolute discretion. Notwithstanding the foregoing, Borrower shall cause the forms of Collateral Mortgage set forth on Exhibit G to be executed and delivered to each Lender encumbering eight (8) Collateral Mortgage Properties. Lender agrees not to record such forms of Collateral Mortgage unless and until there has been a failure of Borrower or Guarantor to perform any term, covenant or agreement contained in Section 5.04 following any applicable notice and cure period and subject to the terms of this Agreement. The selection of the eight (8) Collateral Mortgage Properties is without prejudice to the Lender selecting additional and/or substitute Collateral Mortgage Properties under the terms of this Agreement
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COLLATERAL MORTGAGES. Upon the failure of Borrower or Guarantor to perform any term, covenant or agreement contained in Section 5.04 5.4 of this Agreement, such failure shall not be deemed an Event of Default, provided that within forty-five (45) days thereof after notice thereof (or such longer period not exceeding an additional 30 days to enable Lender to complete an environmental assessment and/or appraisal, and provided further that such delay is not caused by Borrower), Borrower shall cause to be granted a first priority mortgage lien, mortgage deed or deed of trust (each, a "“Collateral Mortgage"”) in favor of each Lender on the Collateral Mortgage Properties to secure payment of Note. The Collateral Mortgage Properties must at all times have an aggregate Collateral Mortgage Value equal to 150% of the indebtedness evidenced by the Note ("“Collateral Mortgage Loan to Value Ratio"”). Each Collateral Mortgage Property shall secure a principal sum not to exceed the Collateral Mortgage Value of such property. Lender, in its sole and absolute discretion, may permit a subordinate priority mortgage lien, mortgage deed or deed of trust (each a "“Subordinate Collateral Mortgage"”) to be granted to each Lender on Collateral Mortgage Properties in lieu of up to one-third (%⅓) of the first priority Collateral Mortgages, provided that (i) the Collateral Mortgage Value of such Collateral Mortgage Property exceeds the aggregate of all Liens and other encumbrances by a ratio of at least 2 to 1, before giving effect to such Subordinate Collateral Mortgage; (ii) the Collateral Mortgage Value of such Collateral Mortgage Property exceeds the aggregate of all Liens and other encumbrances by a ratio of at least 1 to .75, after giving effect to such Subordinate Collateral Mortgage; and (iii) Borrower maintains the required Collateral Mortgage Loan to Value Ratio, after giving effect to such Subordinate Collateral Mortgage. The form and substance of each Collateral Mortgage shall be subject to the reasonable approval of each Lender and its counsel. The execution and delivery of each Collateral Mortgage shall be subject to the prior receipt and approval of the following: (i) an appraisal satisfactory to Lender performed by a state licensed or certified appraiser approved by Lender, at Borrower's ’s sole cost and expense; (ii) a title report and commitment to issue a title insurance policy insuring the lien priority of the Collateral Mortgage subject only to such exceptions as counsel for Lender shall approve and payment of all fees, expenses and premiums in order to cause such policy to be issued at the closing thereof; (iii) policies of insurance reasonably satisfactory to the Lender in form, company and amount and which shall contain coverage, required by the terms of the Collateral Mortgage, and (iv) an environmental assessment of the Property to be encumbered, (at Borrower's ’s sole cost and expense), prepared by an environmental consultant retained by Lender such assessment to be acceptable to Lender, in its sole and absolute discretion. Notwithstanding the foregoing, Borrower shall cause the forms of Collateral Mortgage set forth on Exhibit G to be executed and delivered to each Lender encumbering eight (8) Collateral Mortgage Properties. Lender agrees not to record such forms of Collateral Mortgage unless and until there has been a failure of Borrower or Guarantor to perform any term, covenant or agreement contained in Section 5.04 following any applicable notice and cure period and subject to the terms of this Agreement. The selection of the eight (8) Collateral Mortgage Properties is without prejudice to the Lender selecting additional and/or substitute Collateral Mortgage Properties under the terms of this Agreement
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