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<br />loan No: 9003
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<br />MORTGAGE
<br />(Continued)
<br />
<br />200706586
<br />
<br />Page 3
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<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on
<br />account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Grantor can and will pay the cost of such improvements.
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<br />PROPERTY OAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage:
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<br />Maintenance of Insurance, Grantor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a r!3placement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also
<br />procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being
<br />named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, inclucJing
<br />but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance
<br />companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from
<br />each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten 110) days' prior
<br />written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance
<br />policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the
<br />Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
<br />maximum policy limits 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.
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<br />Application of Proceeds, Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Grantor shall repair or 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 repair or restoration if
<br />Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and
<br />which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to LencJer
<br />under this Mortgage, thfm to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as
<br />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 to Lender a report
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; 14)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and 15) the
<br />expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost 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 the Property or if
<br />Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor's failure to
<br />discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on
<br />Grantor's behalf may (but shall not be obli~lated to) take any action that Lender deems appropriate, including but not limited to discharging
<br />or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all
<br />costs for insuring, 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 Grantor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will IA) be payable on demand; (8) be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or Ie) be treated as a balloon payment which will be due and payable
<br />at the Note's maturity. The Mortgage also will secure payment of these amounts. Such right shall be in addition to all other rights and
<br />remedies to which 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 Mortgage:
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<br />Title, Grantor warrants that: (al Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumhrances other thiln those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power,
<br />llnd authority to execute and deliver this Mortgage to Lender.
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<br />Defense of Title, Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property
<br />against the IllWful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the
<br />interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in
<br />such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of
<br />Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time
<br />to time to permit such participation.
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<br />Compliance With Laws. Grantor warrants thllt the Property and Grantor's use of the Property complies with all existing applicable
<br />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 this Mortgage shall
<br />survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such
<br />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 Grantor shall promptly
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