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Loan No: 87215896
<br />MORTGAGE 202204 598
<br />(Continued) Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this
<br />Mortgage:
<br />Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real
<br />Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such
<br />coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance
<br />policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business
<br />interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and
<br />in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage
<br />from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of
<br />ten (10) days' prior written notice to Lender and not containing any disclaimer of the insurers liability for failure to
<br />give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of
<br />Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the
<br />Real Property be located in an area designated by the Administrator of the Federal Emergency Management Agency
<br />as a special flood hazard area, Grantor agrees to obtain and maintain flood insurance, if available, within 45 days
<br />after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid
<br />principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits
<br />set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan. Flood insurance may be purchased under the National Flood Insurance Program,
<br />from private insurers providing "private flood insurance" as defined by applicable federal flood insurance statutes
<br />and regulations, or from another flood insurance provider that is both acceptable to Lender in its sole discretion and
<br />permitted by applicable federal flood insurance statutes and regulations.
<br />Application of Proceeds. Grantor shall promptly notify Lender of any Toss or damage to the Property. Lender may
<br />make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of
<br />repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed
<br />within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property
<br />shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the
<br />remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after
<br />payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Mortgage, to the extent
<br />compliance with the terms of this Mortgage would constitute a duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions in this Mortgage for division of proceeds shall
<br />apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding Is commenced that would materially affect Lender's interest in
<br />the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but
<br />not limited to Grantor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br />required below, or to discharge or pay when due any amounts Grantor is required to discharge or pay under this
<br />Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that
<br />Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br />encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br />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 payable at the Note's maturity. The Mortgage
<br />also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which
<br />Lender may be entitled upon the occurrence of any Event of Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this
<br />Mortgage:
<br />Title. 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 than those set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or final title opinion Issued in favor
<br />of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and
<br />authority to execute and deliver this Mortgage to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the
<br />title to the Property against the lawful claims 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 party 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 With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in
<br />this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall
<br />remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions conceming Existing Indebtedness are a part of this Mortgage:
<br />Existing Lien. The lien of this Mortgage securing the Indebtedness may be secondary and inferior to an existing
<br />lien. Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to
<br />prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness, or any
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