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MORTGAGE 2 012 0 3 5 7�
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<br />hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to withdraw and apply such
<br />amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay any
<br />interest or earnings on the reserve funds unless required by law or agreed to by Lender in writing. Lender does not hold
<br />the reserve funds in trust for Grantor, and Lender is not Grantor's agent for payment of the taxes and assessments
<br />required to be paid by Grantor.
<br />LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, secur'tty interests,
<br />encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repeirs to the
<br />Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's
<br />interests in the Property, then Lender on Grantor's behalf may, but is not required to, take any action that Lender
<br />believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will
<br />then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment
<br />by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will be due and peyable at the Note's maturity. The Mortgage
<br />also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to eny other
<br />rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not
<br />be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this
<br />Mortgage:
<br />Tkle. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other then those set forth in the Real Property description or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Mortgage, and ib) Grantor has the full right, power, and authority to execute and deliver this Mortgage to
<br />Lender.
<br />Def�nse of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the
<br />title to the Property egainst the lawful cleims of all persons. In the event any action or proceeding is commenced
<br />that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at
<br />Grantor's expense. Grantor may be the nominal perty in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br />to permit such participation.
<br />Compliance Wlth Lews. Grantor warrants that the Property and Grantor's use of the Properry complies with all
<br />existing applicable laws, ordinances, and reguletions of governmental authorities.
<br />Survival of Promlaes. All promises, agreements, and statements Grantor has made in this Mortgage shell survive
<br />the execution and delivery of this Mortgage, shall be continuing in nature and shall remain in fuil force and effect
<br />until such time as Grantor's Indebtedness is paid in full.
<br />CONDEMNATION. The following provisions releting to condemnation proceedings are a part of this Mortgage:
<br />Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and
<br />Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of its own choice, and Grentor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Appllcation of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtedness or the repair or reatoratian of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, end attorneys' fees
<br />incurred by Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHAR(3ES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and charges are a part of this Mortgage:
<br />Current Tax�s, Fees and Cherges. Upon request by Lender, Grantor shall execute such documents in addition to
<br />this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the
<br />Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Mortgege, including without limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Mortgage.
<br />Taxea. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of
<br />Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grarrtor
<br />which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of
<br />Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a
<br />specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor.
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