|
<br />200710712
<br />
<br />4. Taxes, liens, etc. Borrower shall pay when due all taxes, liens, judgments, encumbrances, and assessments lawfully
<br />attaching to or assessed against the property and promptly deliver to the Government without demand receipts evidencing such
<br />payments.
<br />
<br />5. Assignment. Borrower grants and assigns as additional security all the right, title and interest in: (a) the proceeds of any
<br />award or claim for damages, direct or consequential, in connection with any condemnation or taking by eminent domain or
<br />otherwise of any part of the property, or for conveyance in lieu of condemnation; (b) all bonuses, rentals, royalties, damages, delay
<br />rentals and income that may be due or become due and payable to the Borrower or Borrower's assigns under any existing or future
<br />oil, gas, mining or mineral lease covering any portion of the property; and (c) all rents, issues, profits, income and receipts from the
<br />property and from all existing or future leases, subleases, licenses, guaranties and any other agreements for the use and occupancy
<br />of any portion of the property, including any extensions, renewals, modifications or substitutions of such agreements. Borrower
<br />warrants the validity and enforceability of this assignment.
<br />
<br />Borrower authorizes and directs payment of such money to the Government until the debt secured by this instrument is paid in full.
<br />Such money may, at the option of the Government, be applied on the debt whether due or not. The Government shall not be
<br />obligated to collect such money, but shall be responsible only for amounts received by the Government. In the event any item so
<br />assigned is determined to be personal property, this instrument will also be regarded as a security agreement.
<br />
<br />Borrower will promptly provide the Government with copies of all existing and future leases. Borrower warrants that as of the date
<br />of executing this instrument no default exists under existing leases. Borrower agrees to maintain, and to require the tenants to
<br />comply with, the leases and any applicable law. Borrower will obtain the Government's written authorization before Borrower
<br />consents to sublet, modify, cancel, or otherwise alter the leases, or to assign, compromise, or encumber the leases or any future
<br />rents. Borrower will hold the Government harmless and indemnify the Government for any and all liability, loss or damage that the
<br />Government may incur as a consequence of this assignment.
<br />
<br />6. Insurance. Borrower shall keep the prol?erty insured as required by and under insurance policies approved by the
<br />Government and, at its request, deliver such poliCIes to the Government. If property is located in a designated flood hazard area,
<br />Borrower also shall keep property insured as required by 42 V.S.C. ~ 4001 ~ ~. and Government regulations. All insurance
<br />policies and renewals shall include a standard mortgagee clause.
<br />
<br />7. Advances by Government. The Government may at any time pay any other amounts required by this instrument to be
<br />paid by Borrower and not paid by Borrower when due, as well as any cost for the preservation, protection, or enforcement of this
<br />lien, as advances for the account of Borrower. Advances shall include, but not be limited to, advances for payments of real property
<br />taxes, special assessments, prior liens, hazard insurance premiums, and costs ofrepair, maintenance, and improvements. All such
<br />advances shall bear interest at the same rate as the note which has the highest interest rate. All such advances, with interest, shall be
<br />immediately due and payable by Borrower to the Government without demand. No such advance by the Government shall relieve
<br />Borrower from breach of Borrower's covenant to pay. Any payment made by Borrower may be applied on the note or any secured
<br />debt to the Government, in any order the Government determines.
<br />
<br />8. Protection of lien. Borrower shall payor reimburse the Government for expenses reasonably necessary or incidental to the
<br />protection of the lien and its priority and the enforcement or compliance with this instrument and the note. Such expenses include,
<br />but are not limited to: costs of evidence of title to, and survey of, the property, costs of recording this and other instruments;
<br />attorneys' fees, trustees' fees; court costs, and expenses of advertising, selling, and conveying the property.
<br />
<br />9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government.
<br />
<br />10. Repair and operation of property. Borrower shall: (a) maintain improvements in good repair; (b) make repairs required
<br />by the Government; (c) comply with all farm conservation practices and farm management plans required by the Government; and
<br />(d) operate the property in a good and husbandlike manner. Borrower shall not (e) abandon the property; (f) cause or permit waste,
<br />lessening or impairment of the property; or (g) cut, remove, or lease any timber, gravel, oil, gas, coal, or other minerals without the
<br />written consent of the Government, except as necessary for ordinary domestic purposes.
<br />
<br />II. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the property.
<br />
<br />12. Transfer or encumbrance of property. Except as provided by Government regulations, the Borrower shall not lease,
<br />assign, sell, transfer, or encumber, voluntarily or otherwise, any of the property without the written consent of the Government. The
<br />Government may grant consents, partial releases, subordinations, and satisfactions in accordance with Government regulations.
<br />
<br />13. Inspection. At all reasonable times the Government may inspect the property to ascertain whether the covenants and
<br />agreements contained in this instrument are being performed.
<br />
<br />Initial ~ date i 7/ L. 17/e 7
<br />( r
<br />!fJ7i) J 'J-/ iJ- 7/07
<br />
<br />FSA 1927-1 NE (01.28.05) Page3 of7
<br />
|