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NEW York Life Insurance Company / Overseas Partners - Mortgage, Assignment Of Leases And Rents
Exhibit 10(UUU)
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MORTGAGE, ASSIGNMENT OF LEASES AND RENTS
AND SECURITY AGREEMENT
OVERSEAS PARTNERS (MADISON PLAZA), LLC
Mortgagor
with
NEW YORK LIFE INSURANCE COMPANY,
Mortgagee
Dated: December __, 1998
Premises: Madison Plaza
200 West Madison
Chicago, Illinois
Prepared By and
Record And Return To:
Sonnenschein Nath & Rosenthal
8000 Sears Tower
Chicago, Illinois 60606-6404
Attn: Scott B. Toban, Esq.
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TABLE OF CONTENTS*
RECITALS:................................................................ 1 - --------
GRANTING CLAUSE.......................................................... 1
DEFINITIONS.............................................................. 5
ARTICLE I - COVENANTS AND AGREEMENTS..................................... 7
1.01 Payment of Obligations.................................... 7
1.02 Payment of Taxes, Assessments, Etc........................ 7
A. Impositions.......................................... 7
B. Installments......................................... 7
C. Receipts............................................. 7
D. Evidence of Payment.................................. 8
E. Payment by Mortgagee................................. 8
F. Change in Law........................................ 8
G. Permitted Contest.................................... 8
H. No Lease Default..................................... 9
I. Joint Assessment..................................... 9
J. Tax Service Fee...................................... 9
1.03 Insurance................................................. 9
A. Extended Coverage.................................... 9
B. Additional Coverage.................................. 9
C. Separate Insurance................................... 10
D. Insurers; Policies................................... 10
E. Mortgagee's Right to Provide Coverage................ 11
F. Damage or Destruction................................ 11
G. Mortgagor's Use of Proceeds.......................... 12
H. Transfer of Interest in Policies..................... 14
1.04 Escrow Deposits........................................... 14
1.05 Care and Use of Premises.................................. 15
A. Maintenance and Repairs.............................. 15
B. Standard of Repairs.................................. 15
C. Notice to Mortgagee.................................. 15
D. Removal of Equipment................................. 15
E. Compliance With Laws and Insurance................... 15
F. Hazardous Materials.................................. 16
G. Intentionally Omitted................................ 18
H. Compliance With Instruments of Record................ 18
I. Alteration of Secured Property....................... 18
J. Parking.............................................. 19
K. Entry on Secured Property............................ 19
L. No Consent to Alterations or Repairs................. 19
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M. Mechanics Liens........................................................ 19
N. Use of Secured Property by Mortgagor................................... 19
O. Use of Secured Property by Mortgagor................................... 19
P. Management............................................................. 20
1.06 Financial Information....................................................... 20
A. Audit.................................................................. 20
B. Right to Inspect Books and Records..................................... 21
1.07 Condemnation................................................................ 21
A. Mortgagee's Right to Participate in Proceedings........................ 21
B. Application of Condemnation Award...................................... 21
C. Reimbursement of Costs................................................. 21
D. Existing Obligations................................................... 21
E. Application of Award................................................... 22
1.08 Leases...................................................................... 22
A. Performance of Lessor's Covenants...................................... 22
B. Notice of Default...................................................... 23
C. Representations Regarding Leases....................................... 23
D. Manager................................................................ 23
E. Covenants Regarding Leases............................................. 23
F. Approval of Leases..................................................... 24
G. Application of Rents................................................... 26
1.09 Assignment of Leases, Rents, Income, Profits and Cash Collateral............ 26
A. Assignment; Discharge of Obligations................................... 26
B. Entry Onto Secured Property; Lease of Secured Property................. 26
C. License to Manage Secured Property..................................... 27
D. Delivery of Assignments................................................ 27
E. Indemnity.............................................................. 27
1.10 Further Assurances.......................................................... 27
A. General; Appointment of Attorney-in-Fact............................... 27
B. Statement Regarding Obligations........................................ 28
C. Additional Security Instruments........................................ 28
D. Security Agreement and Fixture Filing.................................. 28
E. Preservation of Mortgagor's Existence.................................. 29
F. Further Indemnities.................................................... 29
G. Absence of Insurance................................................... 30
1.11 Further Sales or Encumbrances............................................... 30
A. Continuing Ownership and Management.................................... 30
B. Transfer or Encumbrance of Secured Property............................ 30
C. Acceleration of Obligations............................................ 31
D. Subordinate, Wrap-Around and Other Financing........................... 31
1.12 Intentionally Omitted....................................................... 32
1.13 Expenses.................................................................... 32 ARTICLE II - REPRESENTATIONS AND WARRANTIES................................................ 32
2.01 Warranty of Title........................................................... 32
2.02 Ownership Of Improvements And Personal Property............................. 32
2.03 No Pending Material Litigation or Proceeding; No Hazardous Materials........ 33
A. Proceedings Affecting Mortgagor........................................ 33
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B. Proceedings Affecting Secured Property................................. 33
C. No Hazardous Materials................................................. 33
D. No Litigation Regarding Hazardous Materials............................ 34
2.04 Valid Organization, Good Standing and Qualification of Mortgagor............ 34
2.05 Authorization; No Legal Restrictions on Performance......................... 34
2.06 Compliance With Laws........................................................ 35
2.07 Tax Status.................................................................. 35
2.08 Absence of Foreign or Enemy Status.......................................... 35
2.09 Federal Reserve Board Regulations........................................... 35
2.10 Investment Company Act and Public Utility Holding Company Act............... 36
2.11 Exempt Status of Transactions Under Securities Act
and Representations Relating Thereto........................................ 36
2.12 Employee Benefit Plans...................................................... 36 ARTICLE III - DEFAULTS..................................................................... 37
3.01 Events of Default........................................................... 37 ARTICLE IV - REMEDIES...................................................................... 38
4.01 Acceleration, Foreclosure, etc.............................................. 38
A. Foreclosure............................................................ 38
B. Partial Foreclosure.................................................... 39
C. Entry.................................................................. 39
D. Collection of Rents, etc............................................... 40
E. Receivership........................................................... 40
F. Specific Performance................................................... 40
G. Illinois Mortgage Foreclosure and Remedies............................. 40
4.02 No Election of Remedies..................................................... 45
4.03 Mortgagee's Right to Release, etc........................................... 45
4.04 Mortgagee's Right to Remedy Defaults, etc................................... 45
4.05 Waivers..................................................................... 45
4.06 Prepayment Charge........................................................... 46 ARTICLE V - MISCELLANEOUS.................................................................. 47
5.01 Non-Waiver.................................................................. 47
5.02 Sole Discretion of Mortgagee................................................ 48
5.03 Recovery of Sums Required To Be Paid........................................ 48
5.04 Legal Tender................................................................ 48
5.05 No Merger................................................................... 48
5.06 Discontinuance of Actions................................................... 49
5.07 Headings.................................................................... 49
5.08 Notice to Parties........................................................... 49
5.09 Non-Recourse................................................................ 50
5.10 Successors and Assigns Included In Parties.................................. 51
5.11 Number and Gender........................................................... 51
5.12 Changes and Modifications................................................... 51
5.13 Applicable Law.............................................................. 51
5.14 Invalid Provisions to Affect No Others...................................... 51
5.15 Usury Savings Clause........................................................ 52
5.16 No Statute of Limitations................................................... 52
5.17 Late Charges................................................................ 52
5.18 Waiver of Jury Trial........................................................ 52
5.19 Continuing Effectiveness.................................................... 52
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MORTGAGE, ASSIGNMENT OF LEASES AND RENTS
----------------------------------------
AND SECURITY AGREEMENT
----------------------
MORTGAGE, ASSIGNMENT OF LEASES AND RENTS AND SECURITY AGREEMENT (this "Mortgage") made as of the ____ day of December, 1998 by and between OVERSEAS -------- PARTNERS (MADISON PLAZA), LLC, an Illinois limited liability company, having an office at 115 Perimeter Center Place, Suite 940, Atlanta, Georgia 30346 ("Mortgagor"), and NEW YORK LIFE INSURANCE COMPANY, a New York mutual insurance --------- company, having an office at 51 Madison Avenue, New York, New York 10010 ("Mortgagee"). ---------
RECITALS:
--------
Mortgagor has executed and delivered to Mortgagee that certain Promissory Note (the "Note") dated the date hereof made by Mortgagor and payable to
---- Mortgagee in the original principal amount of One Hundred Twenty-Five Million and 00/100 Dollars ($125,000,000.00) in lawful money of the United States, which Note is secured by this Mortgage and the terms, covenants and conditions of which Note are hereby incorporated herein and made a part hereof;
NOW, THEREFORE, THIS MORTGAGE WITNESSETH, that in consideration of the sum of One Dollar ($1.00) this day paid and other good and lawful consideration, the receipt and sufficiency of which are hereby acknowledged and in order to secure the Obligations (as hereinafter defined), Mortgagor hereby MORTGAGES, CONVEYS, WARRANTS, grants, assigns, releases, transfers, pledges and sets over unto Mortgagee, and confirms that this Mortgage constitutes a valid first lien upon the following property:
GRANTING CLAUSE ONE
All that tract or parcel of land more particularly described in Exhibit A
--------- hereto and made a part hereof (the "Land").
----
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GRANTING CLAUSE TWO
TOGETHER WITH, any and all buildings and improvements now or hereafter located or erected on the Land, including, without limitation, any and all machinery, apparatus, equipment and fixtures now or hereafter attached to, or used or procured for use in connection with the operation and/or maintenance of, any building, structure or other improvement (including, without limitation, all refrigerators, shades, awnings, venetian blinds, screens, screen doors, storm doors and windows, stoves and ranges, curtain fixtures, partitions, attached floor coverings and fixtures, apparatus, equipment or articles used to supply sprinkler protection and waste removal, laundry equipment, furniture, furnishings, appliances, office equipment, elevators, escalators, tanks, dynamos, motors, generators, switchboards, communications equipment, electrical equipment, television and radio systems, heating, plumbing, lifting and ventilating apparatus, air-cooling and air conditioning apparatus, gas and electric fixtures, fittings and machinery and all other equipment of every kind and description but excluding trade fixtures and personal property of tenants under Leases (as hereinafter defined) which do not become the property of Mortgagor upon expiration or termination of the term of such Leases), and all renewals and replacements thereof and articles in substitution therefor used or procured for use in the operation of any and all such buildings, structures and improvements, provided, in all cases, that, whether or not any of the foregoing
-------- are attached to said buildings, structures or other improvements in any manner, all such items shall be deemed to be fixtures, part of the real estate and security for the Obligations (collectively, the "Improvements", and the Land and
------------ Improvements are herein collectively called the "Premises"). To the extent any
-------- of the Improvements are not deemed real estate under the laws of the State of Illinois they shall be deemed personal property ("Personal Property") and this
----------------- Mortgage is and shall be deemed to be a Security Agreement for the purposes of creating hereby a security interest under the Uniform Commercial Code as adopted in the State of Illinois in Mortgagee as Secured Party in the Personal Property as hereinafter provided.
GRANTING CLAUSE THREE
TOGETHER WITH, all easements, rights-of-way, strips and gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water rights and powers, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments, air rights, development rights and credits and appurtenances of any nature whatsoever, in any way belonging, relating or pertaining to, or above or below the Premises.
GRANTING CLAUSE FOUR
TOGETHER WITH, all right, title and interest of Mortgagor, now owned or hereafter acquired, in and to any land lying within the right-of-way of any street, opened or proposed, adjoining the Premises, and in and to any and all sidewalks, alleys and strips and gores of land adjacent to or used in connection with the Premises.
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GRANTING CLAUSE FIVE
TOGETHER WITH, all right, title and interest of Mortgagor in and to all options to purchase or lease the Premises or any portion thereof or interest therein, and any greater estate in the Premises owned or hereafter acquired by Mortgagor.
GRANTING CLAUSE SIX
TOGETHER WITH, all accounts receivable, insurance policies, licenses, franchises, permits, service contracts, management agreements, trade names (including without limitation all right, title and interest of Borrower in the name of "Madison Plaza"), trademarks, service marks, logos, general intangibles, contract rights, interests, estates and other claims, both in law and in equity, which Mortgagor now has or may hereafter acquire in the Premises.
GRANTING CLAUSE SEVEN
TOGETHER WITH, all the estate, interest, right, title and other claim or demand which Mortgagor now has or may hereafter acquire in any and all awards or payments made for the taking by eminent domain, or by any proceeding or purchase in lieu thereof, of the whole or any part of the Premises, including, without limitation, any awards resulting from a change of grade of streets and awards for severance damages together, in all cases, with any interest thereon.
GRANTING CLAUSE EIGHT
TOGETHER WITH, all proceeds of and any unearned premiums on any insurance policies covering the Premises, including, without limitation, the right to receive and apply the proceeds of any insurance or judgments, or settlements made in lieu thereof, for damage to the Premises.
GRANTING CLAUSE NINE
TOGETHER WITH, all the estate, interest, right, title and other claim or demand which Mortgagor now has or may hereafter acquire against anyone with respect to any damage to all or any part of the Premises, including, without limitation, damage arising or resulting from any defect in or with respect to the design or construction of all or any part of the Improvements.
GRANTING CLAUSE TEN
TOGETHER WITH, all deposits or other security or advance payments, including rental payments, made by or on behalf of Mortgagor to others in connection with the ownership or operation of all or any part of the Premises including, without limitation, any such deposits or
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payments made with respect to (i) insurance policies, (ii) utility service, (iii) cleaning, maintenance, repair or similar services, (iv) refuse removal or sewer service, (v) rental of equipment, if any, used by or on behalf of Mortgagor, and (vi) parking or similar services or rights.
GRANTING CLAUSE ELEVEN
TOGETHER WITH, all remainders, reversions, leasehold estate, other estate, right, title, interest and other claim or demand of Mortgagor in and to all leases or subleases covering the Premises or any portion thereof now or hereafter existing or entered into, and all right, title and interest of Mortgagor thereunder, including, without limitation, all cash or security deposits, advance rentals and deposits or payments of similar nature.
GRANTING CLAUSE TWELVE
TOGETHER WITH, absolutely and presently, all rents, issues, profits, cash collateral, royalties, income and other benefits, including, without limitation, benefits accruing from all present and future oil, gas and mineral leases and agreements derived from the Premises (collectively, the "Rents"), subject to the
----- right, power and authority hereinafter given to Mortgagor as a licensee to collect and apply such Rents prior to the occurrence of a default hereunder. The foregoing Premises, Personal Property and rights therein, hereinabove described or mentioned are hereinafter collectively referred to as the "Secured
------- Property". - --------
TO HAVE AND TO HOLD the Premises unto the said Mortgagee, its successors and assigns, forever, for the purposes and uses herein set forth.
Upon full satisfaction of the Obligations (defined herein), Mortgagor shall request Mortgagee to release this Mortgage and the lien hereof and upon payment by Mortgagor to Mortgagee of any filing fee due any third party in order to record and cause such release of public record, Mortgagee shall so release this Mortgage and the lien hereof as a matter of public record.
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DEFINITIONS
As used in this Mortgage, the following terms shall have the meanings specified below (such meanings to be equally applicable to both the singular and plural forms of the terms defined:
"Assignment" shall mean the Assignment of Leases, Rents, Income and Cash
---------- Collateral dated the date hereof from Mortgagor, as assignor, to Mortgagee, as assignee.
"Code" shall mean the Uniform Commercial Code of the State of Illinois.
----
"Condemnation Proceedings" shall have the meaning set forth in Subsection
------------------------ ---------- 1.07A hereof. - -----
"Debt Coverage Ratio" shall mean for any period, a fraction, the numerator of
------------------- which shall equal the projected net operating income of the Premises for such period, and the denominator of which shall equal the aggregate of the principal, interest and any other amounts payable for such period with respect to the Obligations.
"Employee Benefit Plans" shall mean any employee benefit plans (as defined in
---------------------- ERISA) maintained at any time by Mortgagor.
"ERISA" shall mean Internal Revenue Code Section 4975 and the Employee
----- Retirement Income Security Act of 1974 and the regulations thereunder.
"Event of Default" shall have the meaning set forth in Section 3.01 hereof.
---------------- ------------
"Governmental Agency" shall mean any governmental department, commission,
------------------- board, regulatory authority, bureau, agency or instrumentality, domestic, foreign, federal, state or municipal.
"Hazardous Material" shall mean and include any oil, flammable explosives,
------------------ radioactive materials, asbestos in any form, underground fuel tanks, hazardous, toxic or dangerous waste, chemical, substance or related material, urea formaldehyde foam insulation, polychlorinated biphenyls, or radon gas including, but not limited to, substances defined as such in (or for purposes of) or which may give rise to liability under any Hazardous Materials Laws.
"Hazardous Materials Laws" shall mean and include (i) the Comprehensive
------------------------ Environmental Response, Compensation, and Liability Act, as amended, 42 U.S.C. Section 9601, et seq.; (ii) the Hazardous Materials Transportation Act, as
-- --- amended 49 U.S.C. Section 1801, et seq.; (iii) the Resource Conservation and
-- --- Recovery Act, as amended, 42 U.S.C. Section 6901, et seq.; (iv) the Clean Water
-- --- Act of 1977, 33 U.S.C. Section 1251, et seq.; (v) the Federal Safe Drinking
-- --- Water Act, 42 U.S.C. Section 300(f) et seq.; (vi) the Federal Toxic Substances
-- --- Control Act, 15 U.S.C. Sections 2601, et seq.; (vii) the Federal Clean Air Act,
-- --- 42 U.S.C. Section 7401 et seq.; (viii) the Illinois Clean Indoor Air Act, 410
-- --- ILCS 80/1 et seq.; (ix) the Illinois Environmental Protection Act, 415 ILCS 5/1
-- --- et seq. and all regulations issued pursuant thereto and any so-called - -- --- "Superfund" or "Superlien" law, or any other federal, state or local statute, law,
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ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect.
"Hazardous Materials Claims" shall have the meaning set forth in Subsection
-------------------------- ---------- 1.05F(4) hereof. - --------
"Impositions" shall have the meaning set forth in Subsection 1.02A hereof.
----------- ----------------
"Improvements" shall have the meaning set forth in Granting Clause Two hereof.
------------
"Increased Rate" shall mean the rate of twelve and ninety hundredths percent -------------- (12.90%) per annum.
"Land" shall have the meaning set forth in Granting Clause One hereof.
----
"Lease" shall have the meaning set forth in Subsection 1.08A hereof.
----- ----------------
"Lessee" shall have the meaning set forth in Subsection 1.08A hereof.
------ ----------------
"Loan Documents" shall mean the Note, this Mortgage, the Assignment and any
-------------- other instrument now or hereafter given to evidence, secure or guaranty the Obligations.
"Mortgagee's Architect" shall mean an architect or registered engineer
--------------------- approved by Mortgagee.
"Net Rental Rate" shall equal: (i) for a net Lease, the then-current base
--------------- annual rental rate per square foot as identified in such Lease; or (ii) for a gross Lease, the then-current base annual rental rate per square foot less: (a) the applicable expense stop, if any, or (b) if an expense stop is not stated, the then current good faith estimate of expenses that are typically recoverable
---------- from the Lessee; however, under no circumstances shall such estimate be less than 95% of the preceding calendar year's actual expenses generally recoverable from Lessees in the Building on a pro rata basis.
"Obligations" shall mean the full and prompt payment and performance of all of
----------- the indebtedness, obligations, covenants, agreements and liabilities of Mortgagor to Mortgagee, together with all interest and other charges thereon, whether direct or indirect, existing, future, contingent or otherwise, due or to become due, under or arising out of or in connection with the Note, this Mortgage, the Assignment or any other Loan Document, any and all modifications, extensions and renewals of any of the foregoing; and any and all expenses and costs of collection or enforcement, including, without limitation, attorneys' fees incurred by Mortgagee in the collection or enforcement of any of the foregoing, or in the exercise of any of the rights or remedies under the Loan Documents or applicable law.
"Partial Foreclosure" shall have the meaning set forth in Subsection 4.01B
------------------- ---------------- hereof.
"Personal Property" shall have the meaning set forth in Granting Clause Two
----------------- hereof.
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"Premises" shall have the meaning set forth in Granting Clause Two hereof.
--------
"Rents" shall have the meaning set forth in Granting Clause Twelve hereof.
-----
"Secured Property" shall have the meaning set forth in Granting Clause
---------------- Twelve hereof.
"Transfer" shall have the meaning set forth in Subsection 1.11B hereof.
-------- ----------------
ARTICLE I
COVENANTS AND AGREEMENTS
------------------------
Mortgagor hereby covenants and agrees as follows:
1.01 Payment of Obligations. Mortgagor shall pay when due the principal
---------------------- of, and the interest on, the indebtedness evidenced by the Note, any future advances necessary to protect the Secured Property and all other charges, fees and all other Obligations as provided in the Loan Documents.
1.02 Payment of Taxes, Assessments, Etc.
----------------------------------
A. Impositions. Mortgagor shall pay when due and payable, without
----------- notice or demand before any fine, penalty, interest or cost for the non-payment thereof may be added thereto, all taxes, assessments, water and sewer rents, rates and charges, transit taxes, county taxes, charges for public utilities, excises, levies, vault and all other license and permit fees and other governmental charges, general and special, ordinary and extraordinary, unforeseen and foreseen, of any kind and nature whatsoever (including penalties, interest, costs and charges accrued or accumulated thereon) which at any time may be assessed, levied, confirmed, imposed upon or become due and payable out of or in respect to, or become a lien on, the Secured Property or any part thereof or any appurtenance thereto, as the case may be (all such taxes, assessments, water and sewer rents, rates and charges, transit taxes, county taxes, charges for public utilities, excises, levies, vault and all other license and permit fees and other governmental charges including all interest, penalties, costs and charges accrued or accumulated thereon, are herein collectively called "Impositions", and individually, an "Imposition").
B. Installments. Notwithstanding anything to the contrary contained in
------------ Subsection 1.02A above, if by law any Impositions may at the option of the - ---------------- taxpayer be paid in installments (whether or not interest shall accrue on the unpaid balance of such Impositions), Mortgagor may exercise the option to pay the same (and any accrued interest on the unpaid balance of such Impositions) in installments and, in such event, shall pay such installments as the same respectively become due and before any fine, penalty, further interest or cost may be added thereto.
C. Receipts. Mortgagor, upon request of Mortgagee, will furnish to
-------- Mortgagee within five (5) days before the date when any Imposition would become delinquent, official receipts of the appropriate taxing authority, or other evidence reasonably satisfactory to
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Mortgagee evidencing the payment thereof.
D. Evidence of Payment. The certificate, advice or bill issued by
------------------- the appropriate official (designated by law either to make or issue the same or to receive payment of any Imposition) of non-payment of an Imposition shall be prima facie evidence that such Imposition is due and unpaid at the time of the making or issuance of such certificate, advice or bill. Mortgagor agrees to pay Mortgagee, on demand, all charges, costs and expenses of every kind incurred by Mortgagee in connection with obtaining evidence satisfactory to Mortgagee that the payment of all Impositions is current and that there is no Imposition due and owing or which has become or given rise to a lien on the Secured Property or any part thereof or any appurtenance thereto.
E. Payment by Mortgagee. Subject to Subsection G of this Section
-------------------- ------------ ------- 1.02, if Mortgagor shall fail to pay any Imposition in accordance with the - ---- provisions of this Section 1.02, Mortgagee may, at its option (but shall be
------------ under no obligation to do so), pay such Imposition and Mortgagor will repay to Mortgagee on demand any amount so paid by Mortgagee, with interest thereon at the Increased Rate to the date of repayment and all such amounts shall be secured by this Mortgage. In no event shall the Increased Rate be greater than the highest interest rate permissible by law.
F. Change in Law. In the event of the passage after the date of
------------- this Mortgage of any law of the State of Illinois deducting the Obligations from the value of the Secured Property or any part thereof for the purpose or with the result of taxes being assessed against the Obligations payable by the holder thereof or resulting ...
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