|
<br />
<br /> 200910020
<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 /> 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 /> 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 /> Borrower will promptly provide'the Governttient"with"co1069 of alydfi-tir g'afid 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 /> b. Insurance. Borrower shall keep the property 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 U.S.C. § 4001 et seq. and Government regulations. All insurance
<br /> policies and renewals shall include a standard mortgagee clause.
<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 of repair, 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 /> 8. Protection of lien. Borrower shall pay or 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 /> 9. Authorized purposes. Borrower shall use the loan evidenced by the note solely for purposes authorized by the Government.
<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 /> 11. Legal compliance. Borrower shall comply with all laws, ordinances, and regulations affecting the property.
<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 /> 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 /> Initi(alCaC e IZ-/209 FSA 1927-1 NE (01-28-05) Page 3 of 7
<br />
|