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85-000612
<br />to Lender's interest in the Property.
<br />9, Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are
<br />hereby assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security
<br />agreement with a lien which has priority over this Mortgage.
<br />10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Mortgage granted by Lender to any successor in interest of
<br />Borrower and all other parties who are or thereafter become secondarily liable shall not operate to release, in any
<br />manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to
<br />commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of
<br />the sums secured by this Mortgage by reason of any demand made by the original Borrower and Borrower's successors in
<br />interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable
<br />law, shall not be a waiver of or preclude the exercise of any such right or remedy.
<br />11. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements herein
<br />contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
<br />Borrower, subject to the provisions of paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and
<br />several. Any Borrower who co -signs this Mortgage, but does not execute the Note, (a) is co- signing this Mortgage only to
<br />mortgage, grant and convey that Borrower's interest in the Property to Lender under the terms of this Mortgage, (b) is
<br />not personally liable on the Note or under this Mortgage, and (c) agrees that Lender and any other Borrower hereunder
<br />may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this Mortgage or
<br />the Note without that Borrower's consent and without releasing that Borrower or modifying this Mortgage as to that
<br />Borrower's interest in the Property.
<br />12. Notice. Except for any notice required under applicable !aw to be given in another manner, (a) any notice to
<br />Borrower provided for in this Mortgage shall be given by delivering it or by mailing such notice by certified mail
<br />addressed to Borrower at the Property Address or at such oltier address as Borrower may designate by notice to Lender
<br />as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to
<br />such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this
<br />Mortgage shall be deemed to have been given to Borrower or Lender when given in the manner designated herein.
<br />13. Governing Law; Severability. The state and local laws of the jurisdiction in which the Property is located shall
<br />apply except where such laws conflict with Federal law; in which case. Federal law applies. In the event that any
<br />provision or clause of this Mortgage or the Note conflicis with applicable law, such conflict shall not affect other
<br />provisions of this Mortgage or the Note which can be given effect without the conflicting provision, and to this end the
<br />provisions of this Mortgage and the Note are declared to be severable. As used herein, "costs ", "expenses" and
<br />"attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein.
<br />14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this :Mortgage, if requested
<br />at the time of execution or after recordation hereof.
<br />IS. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any horse
<br />rehabilitation, improvement, repair or other loan agreement which Borrower enters into with Lender. Lender, at
<br />Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment
<br />of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in
<br />connection with improvements made to the Property.
<br />14. Transfer of the Property. If Borrower sells or transfers all or any part of the Property or an interest therein,
<br />excluding (a) the creation of a lien or encumbrance subordinate to this Mortgage, (b) a transfer by devise, descent, or by
<br />operation of law upon the death of a joint tenant, (c) the grant of any leasehold interest of three years or less not
<br />containing all option to purchase, (d) the creation of a purchase money security interest for household appliances, (e) a
<br />transfer to a relative resulting from the death of a Borrower, (f) a transfer where the spouse or children of the Borrower
<br />become an owner of the property, (g) it transfer resulting from a decree of dissolution of marriage, legal separation
<br />agreement, or from an incidental properry settlement agreement, by which the spouse of the Borrower becomes an owner
<br />of the property, (h) a transfer into an inter vivos trust in which the Borrower is and remains a beneficiary and which does
<br />not relate to a transfer of rights of occupancy in the proper(y, or it) any other transfer or disposition described in
<br />regulations prescribed by the Federal Home Loan Bank Board, Borrower shall cause to be submitted information
<br />required by Lender to evaluate the transferee as if a new loan were being made to the Iransferee. Borrower will continue
<br />to he obligated under the Note and this Mortgage unless Lender releases Borrower In ,%riling.
<br />If Lender does not agree to such sale or transfer. Lender may declare all of the sums secured by this Mortgage it) be
<br />immediately due and payable. If Lender exercises such opru ?n to accelerate, I.cnder shall mail Borrower notice of
<br />acceleration in accordance with paragraph IZ hereof. Such nonce shall provide a period of not less than ip days from the
<br />date the notice is mailed or delivered within which Borrower may pay file sums declared due. If Borrower fails to pay
<br />such sums prior to the expiration of such period, Lender may, without hirther notice or demand on Borrower, invoke
<br />any remedies permitted by paragraph 17 hereof.
<br />NON - UNIFORM COVi NAINTS, Borrower and 1. ender further covenant and agree as follows;
<br />17, Acceleration; Remedies. Except as provided in paragraph 16 hereof, or as otherwise required by law, upon
<br />Borrower's breach of any covenant or agreement of Borrower in this Mortgage. Including the covenants to pay by the
<br />end of 10 calendar days after they are due, say sutras secured by this Mortgage. Lender prior to acceleration shall give
<br />notice to Borrower as prescribed by applicable law specifying: (1) the breach; (2) the action required to cure such breach;
<br />03) a date, not less than 20 days from the date the notice is mailed to Borrower, by which such breach must he cared: and
<br />(4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of lice sums
<br />secured by this Mortgage, foreclosure by judicial proceeding, and sale of the Property. The notice,,hall further inform
<br />Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the nonexistence
<br />rem
<br />(if a default /lr any other defense of Borrower 111 acceleration and foreclosure. If the breach is not cured on or before the
<br />dale specified in the notice, bender, at l,end^r's option, may declare all of the sutras secured by this Morlgnq(e to Ire
<br />f '
<br />Immediately due and payable without further demand and may foreclose this Monaage by ,judicial proceeding. Lender
<br />shalt he entitled Io collect in Nuch proceeding all rxpen%e4 1 t Foreclosure. including, hill mit hmiled 111, reasonable
<br />r
<br />aflornsya' fees, and rosts /,f documentary evidence, abstracts and title reporls.
<br />111. Borrower's Right In Reinstate. Not w It 1141andtnV I endel,ti at'eleral Ism lIf Ilse'11111 0,1111',l 11% 011, \1"11 p'ag,e 0110
<br />rip Horrower'9 bretich, lloilowi,,l `,t1;111 11avC ifle Ilittlf t1111riNe i111s pro,-Ceding', hcl,111` Ill 1 'lldel 1" 1111 �t• i11tti �ti1111,ja lr l'
<br />Eltiy: /1111 tt111 r,t m itlly Imic Iiri111 1., 1,1111% i,1 a Judglllelll ell tilt l'1,1k' 011, "I"rivaut' II 1.11 It1111 .11 c'1 I1;1 \s 11'I!d Cl ,111 X111,10
<br />wimp wlid he liwil dliv Illldri 11110 111C iNwe ht jd 111, Alt01,r;tlll,tl , t, 1111;'tf, 11't ft,fl ItIt11'I l III1'1 ,111 I111'Elt 1!1',
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