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<br /> 07-23-1999 (�� ; 1�g O(�O MORTGAGE Page 4
<br /> Loan No 764553 � (Continued)
<br /> Indebtedness in good standing as required below,or if any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Grantor's behalf may,but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender
<br /> expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned
<br /> among and be payable with any installment payments to become due during either (i) the term of any applicable insurance policy or (ii) the
<br /> remaining term of the Note,or (c)be treated as a balloon payment which will be due and payable at the Note's maturity. This Mortgage also will
<br /> secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender
<br /> may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any
<br /> 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 Mortgage.
<br /> Title. Grantor warrants that: (a)Grantor holds good and marketable tiHe of record to the Property in fee simple,free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in the E�dsting Indebtedness section below or in any title insurance
<br /> policy,fide report,or final title opinion issued in favor of,and accepted by,Lender in connection with this Mortgage,and (b)Grantor has the full
<br /> right,power,and 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 title to the Property against the
<br /> Iawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under
<br /> this Mortgage,Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding,but Lender shall be
<br /> entitled to pa�icipate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice,and Grantor will deliver,or
<br /> �cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation.
<br /> Compliance With L,aa�vs. Grantor_warrants that the Property and Grantor's use of the Property complies with all exisfing applicable laws,
<br /> ordinances,and regulations of governmental autho�iNes. �
<br /> IXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness(the"Existing Indebtedness")are a part of this Mortgage:
<br /> ' F�cisting Lien. The lien of this Mortgage securing the Indebtedness may be secondary and inferior to the lien securing payment of an existing
<br /> obligation with an account number of 761553 to Five Points Bank described as: Deed of Trust dated September 18, 1998, and recorded
<br /> 9/23/98 as Doc.�98-109277. The existing obligation has a current principal balance of approximately$24,212.43 and is in the original principal
<br /> amount of$24,389.56. Grantor expressly covenants and agrees to pay,or see to the payment of,the Existing Indebtedness and to prevent any
<br /> default on such indebtedness,any default under the instruments evidencing such indebtedness, or any default under any security documents
<br /> tor such indebtedness.
<br /> Detault. If the payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness,or should a default occur under the instrument securing such indebtedness and not be cured during any
<br /> applicable grace period therein,then,at the option of Lender,the Indebtedness secured by this Mortgage shall become immediately due and
<br /> payable,and this Mortgage shall be in default.
<br /> No ModiNcation. Grantor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security agreement which
<br /> has prioriiy over this Mortgage by which that agreement is modified, amended, extended, or renewed without the prior written consent of
<br /> Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation of the Property are a part of this Mortgage.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attorneys'fees incurred by Lender in connection with the condemnation.
<br /> Proceedings. If any proceeding in condemnation is filed,Grantor shall promptly notify Lender in writing,and Grantor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice,and Grantor will deliver or
<br /> cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br /> fees and charges are a part of this Mortgage: _ T
<br /> _CurreM Taxes,Fees and Charpes. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all
<br /> taxes,as described below,together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation
<br /> �all taxes,fees,documentary stamps,and other charges for recording or registering this Mortgage.
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<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Mortgage or upon all or any part of
<br /> the Indebtedness secured by this Mortgage; (b)a specific tax on Grantor which Grantor is authorized or required to deduct from payments on
<br /> the Indebtedness secured by this type of Morigage; (c)a tax on this type of Mortgage chargeable against the Lender or the holder of the Note;
<br /> and (d)a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage,this event shall have the same
<br /> effect as an Event of Default(as defined below),and Lender may exercise any or all of its available remedies for an Event of Default as provided
<br /> � below unless Grantor either (a)pays the tax before it becomes delinquent, or (b)contests the tax as provided above in the Taxes and Liens
<br /> -- section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br /> SECURITY AGREEMENT;FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this
<br /> Mortgage.
<br /> Security Agreement. This instrument shall constitute a security agreement to the extent any of the Property constitutes fixtures cr other
<br /> personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to
<br /> ±ime.
<br /> Security Interest. Upon request by Lender,Grantor shall execute flnancing statements and take whatever other action is requested by Lender
<br /> to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property
<br /> records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this
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