Common use of Taxes on Mortgagee Clause in Contracts

Taxes on Mortgagee. a. If any Governmental Authority shall levy, assess, or charge any tax, assessment or imposition upon this Junior Mortgage, the Secured Obligations, the interest of Mortgagee in the Mortgaged Property, or Mortgagee by reason of or as holder of any of the foregoing, Mortgagors shall pay (or provide funds to Mortgagee for such payment), to the extent required in the Secured Agreement, all such taxes, assessment and impositions to, for, or on account of Mortgagee (other than federal, state or local income taxes of Mortgagee or franchise taxes imposed on the Mortgagee or the holder of the Instrument assessed other than on the basis of Mortgagee's or such holder's holding this Junior Mortgage) as they become due and payable and on demand shall furnish proof of such payment to Mortgagee. In the event of passage of any law or regulation permitting, authorizing or requiring the tax, assessment or imposition to be levied, assessed or charged, which law or regulation prohibits Mortgagor from paying the tax, assessment or imposition to or for Mortgagee (and from providing funds to the Mortgagee to pay any such tax, assessment or imposition), or which shall make such payment by Mortgagor result in the imposition of interest exceeding the maximum permitted by law, then, unless the affected portion of the Mortgaged Property is released from the lien of this Junior Mortgage pursuant to the terms hereof and of the Secured Agreement, Mortgagee may declare the Secured Obligations secured hereby immediately due and payable. b. In the event of the passage after the date of this Junior Mortgage of any law of the jurisdiction in which the Real Estate is located deducting from the value of the Real Estate 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 for state or local purposes or the manner of the collection of any such taxes and imposing a tax, either directly or indirectly, on this Junior Mortgage or any Secured Instrument Document, as defined in the Secured Agreement, Mortgagee shall have the right to declare all sums outstanding secured by this Junior Mortgage immediately due and payable, provided, however, that such election shall be ineffective if (i) the affected 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 Mortgagee to pay such taxes) in addition to all other payments required hereunder and if Mortgagor pays such tax (or provides funds to Mortgagee to pay such tax) when the same is due and payable and agrees in writing to pay such tax when the same is due and payable and agrees in writing to pay such tax when thereafter levied or assessed against the Real Estate; or (ii) the affected portion of the Mortgaged Property is released from the lien of this Junior Mortgage in accordance with the terms hereof and of the Secured Agreement.

Taxes on Mortgagee. a. If any Governmental Authority shall levy, assess, or charge any tax, assessment or imposition upon this Junior Mortgage, the Secured Obligations, the interest of Mortgagee in the Mortgaged Property, or Mortgagee by reason of or as holder of any of the foregoing, Mortgagors Mortgagor shall pay (or provide funds to Mortgagee for such payment), to the extent required in the Secured Agreement, all such taxes, assessment and impositions to, for, or on account of Mortgagee (other than federal, state or local income taxes of Mortgagee or franchise taxes imposed on the Mortgagee or the holder of the Instrument Obligations assessed other than on the basis of Mortgagee's or such holder's holding this Junior Mortgage) as they become due and payable and on demand shall furnish proof of such payment to Mortgagee. In the event of passage of any law or regulation permitting, authorizing or requiring the tax, assessment or imposition to be levied, assessed or charged, which law or regulation prohibits Mortgagor from paying the tax, assessment or imposition to or for Mortgagee (and from providing funds to the Mortgagee to pay any such tax, assessment or imposition), or which shall make such payment by Mortgagor result in the imposition of interest exceeding the maximum permitted by law, then, unless the affected portion of the Mortgaged Property is released from the lien of this Junior Mortgage pursuant to the terms hereof and of the Secured Agreement, Mortgagee may declare the Secured Obligations secured hereby immediately due and payable. b. In the event of the passage after the date of this Junior Mortgage of any law of the jurisdiction in which the Real Estate is located deducting from the value of the Real Estate 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 for state or local purposes or the manner of the collection of any such taxes and imposing a tax, either directly or indirectly, on this Junior Mortgage or any Secured Instrument Document, as defined in the Secured Agreement, Mortgagee shall have the right to declare all sums outstanding secured by this Junior Mortgage immediately due and payable, provided, however, that such election shall be ineffective if (i) the affected 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 Mortgagee to pay such taxes) in addition to all other payments required hereunder and if Mortgagor pays such tax (or provides funds to Mortgagee to pay such tax) when the same is due and payable and agrees in writing to pay such tax when the same is due and payable and agrees in writing to pay such tax when thereafter levied or assessed against the Real Estate; or (ii) the affected portion of the Mortgaged Property is released from the lien of this Junior Mortgage in accordance with the terms hereof and of the Secured Agreement.