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<br />loan No: 611498
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<br />MORTGAGE
<br />(Continued)
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<br />Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing
<br />the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
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<br />Application of Proceeds. Grantor shall promptly notify Lender of any loss 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, payor 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.
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<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.
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<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 discharge or pay when due any amounts Grantor is required to discharge or pay under
<br />this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action
<br />that 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; (6) 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 (e) 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 Default.
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<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this
<br />Mortgage:
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<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 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 (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to
<br />Lender.
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<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.
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<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.
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<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 Grantor's Indebtedness shall be paid in full.
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<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage:
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<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 Grantor 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.
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<br />Application 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 proc<:eds of the 1lward be applied to the Indebtedness or the repair or restoration of the P,operty. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Lender in connection with the condemnation.
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<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and charges are a part of this Mortgage:
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<br />Current Taxes, Fees and Charges. 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 Mortgage, including without limitation all taxes, fees,
<br />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: (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 Grantor
<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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<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage,
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