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482 2 01707180
<br />together with all rights (including the rights to mining products, gravel, oil, gas, coal or other minerals), interests, easements, fixtures, hereditaments,
<br />appurtenances, and improvements now or later attached thereto, the rents, issues and profits thereof, revenues and income therefrom, all water, water
<br />rights, and water stock pertaining thereto, and all payments at any time owing to Borrower by virtue of any sale, lease, transfer, or condemnation of
<br />any part thereof or interest therein (collectively called "the property"). This instrument constitutes a security agreement and financing statement
<br />under the Uniform Commercial Code and creates a security interest in all items which may be deemed to be personal property, including but not
<br />limited to proceeds and accessions, that are now or hereafter included in, affixed, or attached to "the property. "
<br />Borrower COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the property
<br />and that the property is unencumbered, except for encumbrances of record. Borrower warrants and will defend the title to the property against all
<br />claims and demands, subject to any encumbrances of record.
<br />This instrument combines uniform covenants for national use and non - uniform covenants with limited variations by jurisdiction to constitute a
<br />uniform mortgage covering real property.
<br />UNIFORM COVENANTS. Borrower COVENANTS AND AGREES as follows:
<br />1. Payment. Borrower shall pay promptly when due any indebtedness to the Government secured by this instrument.
<br />2. Fees. Borrower shall pay to the Government such fees and other charges that may now or later be required by Government regulations.
<br />3. Application of payments. Unless applicable law or Government's regulations provide otherwise, all payments received by the
<br />Government shall be applied in the following order of priority: (a) to advances made under this instrument; (b) to accrued interest due under the
<br />note; (c) to principal due under the note; (d) to late charges and other fees and charges.
<br />4. Taxes, liens, etc. Borrower shall pay when due all taxes, liens, judgments, encumbrances, and assessments lawfully attaching to or
<br />assessed against the property and promptly deliver to the Government without demand receipts evidencing such payments.
<br />5. Assignment. Borrower grants and assigns as additional security all the right, title and interest in: (a) the proceeds of any award or
<br />claim for damages, direct or consequential, in connection with any condemnation or taking by eminent domain or otherwise of any part of the
<br />property, or for conveyance in lieu of condemnation; (b) all bonuses, rentals, royalties, damages, delay rentals and income that may be due or
<br />become due and payable to the Borrower or Borrower's assigns under any existing or future oil, gas, mining or mineral lease covering any portion of
<br />the property; and (c) all rents, issues, profits, income and receipts from the property and from all existing or future leases, subleases, licenses,
<br />guaranties and any other agreements for the use and occupancy of any portion of the property, including any extensions, renewals, modifications or
<br />substitutions of such agreements. Borrower warrants the validity and enforceability of this assignment.
<br />Borrower authorizes and directs payment of such money to the Government until the debt secured by this instrument is paid in full. Such money
<br />may, at the option of the Government, be applied on the debt whether due or not. The Government shall not be obligated to collect such money, but
<br />shall be responsible only for amounts received by the Government. In the event any item so assigned is determined to be personal property, this
<br />instrument will also be regarded as a security agreement.
<br />Borrower will promptly provide the Government with copies of all existing and future leases. Borrower warrants that as of the date of executing this
<br />instrument no default exists under existing leases. Borrower agrees to maintain, and to require the tenants to comply with, the leases and any
<br />applicable law. Borrower will obtain the Government's written authorization before Borrower consents to sublet, modify, cancel, or otherwise alter
<br />the leases, or to assign, compromise, or encumber the leases or any future rents. Borrower will hold the Government harmless and indemnify the
<br />Government for any and all liability, loss or damage that the Government may incur as a consequence of this assignment.
<br />6. Insurance. Borrower shall keep the property insured as required by and under insurance policies approved by the Government and, at
<br />its request, deliver such policies to the Government. If property is located in a designated flood hazard area, Borrower also shall keep property
<br />insured as required by 42 U.S.C. § 4001 et. RR. and Government regulations. All insurance policies and renewals shall include a standard mortgagee
<br />clause.
<br />7. Advances by Government. The Government may at any time pay any other amounts required by this instrument to be paid by
<br />Borrower and not paid by Borrower when due, as well as any cost for the preservation, protection, or enforcement of this lien, as advances for the
<br />account of Borrower. Advances shall include, but not be limited to, advances for payments of real property taxes, special assessments, prior liens,
<br />hazard insurance premiums, and costs of repair, maintenance, and improvements. All such advances shall bear interest at the same rate as the note
<br />which has the highest interest rate. All such advances, with interest, shall be immediately due and payable by Borrower to the Government without
<br />demand. No such advance by the Government shall relieve Borrower from breach of Borrower's covenant to pay. Any payment made by Borrower
<br />may be applied on the note or any secured debt to the Government, in any order the Government determines.
<br />8. Protection of lien. Borrower shall pay or reimburse the Government for expenses reasonably necessary or incidental to the protection
<br />of the lien and its priority and the enforcement or compliance with this instrument and the note. Such expenses include, but are not limited to: costs
<br />of evidence of title to, and survey of, the property, costs of recording this and other instruments, attorneys' fees, trustees' fees, court costs, and
<br />expenses of advertising, selling, and conveying the property.
<br />9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government.
<br />Initial
<br />date tb 5/( 7
<br />FSA -2029 KS (11- 04 -08) Page 2 of 6
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