|
200104291
<br />which is equal to the amount of the Note as set forth in the Security Instrument. Such advances shall
<br />be evidenced by the Note, made under the terms of the Loan Agreement and secured by this
<br />Security Instrument and may occur for a period up to the end of the Construction Phase, but in no
<br />event after 6 months from the date of this Rider.
<br />3. Assignment of Rights or Claims. From time to time as Lender deems necessary to protect
<br />Lender's interest, Borrower shall, upon request of Lender, execute, acknowledge before a notary,
<br />and deliver to Lender, assignments of any and all rights or claims which relate to the construction
<br />on the Property. ,
<br />4. Breach by Borrower. In case of breach by Borrower of the covenants and conditions of the Loan
<br />Agreement, subject to any right of Borrower to cure Borrower's default, Lender, at Lender's option,
<br />with or without entry upon the Property (a) may invoke any of the rights or remedies provided in
<br />the Loan Agreement, (b) may accelerate the sums secured by this Security Instrument and invoke
<br />any of the remedies provided in this Security Instrument, or (c) may do both. Lender's failure to
<br />exercise any of its rights and remedies at any one time shall not constitute a waiver by Lender of its
<br />right to exercise that right or remedy, or any other right or remedy, in the future.
<br />S. Permanent Mortgage Date. On the day the Construction Phase ends, the loan evidenced by the
<br />Note will be a permanent mortgage loan ( "Permanent Mortgage Date "). Beginning on the
<br />Permanent Mortgage Date, interest shall accrue as stated in the Note and monthly payments of
<br />principal and interest shall be due and payable as set forth in the Note.
<br />6. Security Agreement and Financing Statement. The property covered by this Security
<br />Instrument includes the Property previously described or referred to in this Security Instrument,
<br />together with the following, all of which are referred to as the "Property." The portion of the
<br />Property that constitutes real property is sometimes referred to as the "Real Property." The
<br />portion of the Property which constitutes personal property is sometimes refereed to as the
<br />"Personal Property," and is described as follows: (i) Borrower's right to possession of the
<br />Property; (ii) any and all fixtures, machinery, equipment, building materials, appliances, and
<br />goods of every nature whatsoever now or hereafter located in, or on, or used, or intended to be
<br />used in connection with the Property or the Improvements, and all replacements of and
<br />accessions to those goods; and (iii) proceeds and products of the Personal Property. Despite any
<br />other provision of this Rider or any other Loan Document, however, Lender is not granted, and
<br />will not have, a non - purchase money security interest in household goods, to the extent that such
<br />a security interest would be prohibited by applicable law.
<br />This Security Instrument is and shall be a security agreement granting Lender a first and prior
<br />security , interest in all of Borrower's right, title and interest in and to the Personal Property, under
<br />and within the meaning of applicable state laws, as well as a document granting a lien upon and
<br />against the Real Property. In the event of any foreclosure sale, whether made by Trustee, or under
<br />judgment of a court, all of the Real Property and Personal Property may, at the option of Lender, be
<br />sold as a whole or in parcels. It shall not be necessary to have present at the place of such sale the
<br />Personal Property or any part thereof. Lender, as well as Trustee on Lender's behalf, shall have all
<br />the rights, remedies and recourse with respect to the Personal Property afforded to a "Secured
<br />Party" by applicable state laws in addition to and not in limitation of the other rights and remedies
<br />afforded Lender and/or Trustee under this Security Instrument. Borrower shall, upon demand, pay
<br />to Lender the amount of any and all expenses, including the fees and disbursements of Lender's
<br />legal counsel and of any experts and agents, which Lender may incur in connection with: (i) the
<br />making and/or administration of this Security Instrument; (ii) the custody, preservation, use or
<br />Page 2 of 5
<br />Fannie Mae
<br />Form 3737
<br />Rev. May 2000
<br />
|