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<br />of the zeal property, and shall cover all articles of personal
<br />property owned by Mortgagor which are delivered to the Property for
<br />incorporation or use in any construction being conducted on the
<br />Property. To the extent any property covered by this Mortgage con-
<br />sists of rights in action or personal property covered by the Uniform
<br />Commercial Code, this Mortgage shall constitute a security agreement
<br />and financing statement, and this Mortgage is intended when recorded
<br />to create a perfected security interest in such property in favor of
<br />American. This Mortgage shall be self-operative with respect to such
<br />property, but Mortgagor agrees to execute and deliver on demand such
<br />Security Agreements., Financing Statements, and/or other instruments
<br />as American may request in order to impose the lien of this Mortgage
<br />more spec if ically upon any of such property, and Mortgagor agrees to
<br />pay all recording and/or f ilirg fees associated with imposing such
<br />lien. If the lien of this Mortgage on any property shall be subject
<br />to a prior security agreement covering such property, then in the
<br />evert of any default under *_his Mor*_gage, al 1 of the right, title,
<br />and interest of Mortgagor in and to any and all deposits on such
<br />Property is assigned to American, together with the benefit of any
<br />payments now or hereafter made on such property. For the purposes of
<br />treating this Mortgage as a security agreement and/or financing
<br />statement, American shall be deemed to be the Secured Party and
<br />Mortgagor shall be deemed to be the Debtor.
<br />11. Mortgagor authorizes American, at American's option,
<br />as attorney in fact for Ptoztgagor, to appear in and prosecute with
<br />Mortgagor, or failing Mortgagor's separate appearance and active
<br />prosecution, to undertake, in Mortgagor's name, any action or pro-
<br />ceeding relating to any conde.~nnation or other taking of the Property
<br />and to settle or compromise any claim in connection with such condem-
<br />nation or other taking. The proceeds cf any award or claim for
<br />damage, direct or consequential, is connection with any condemnaticn
<br />or other taking of the Property, oz part of the Property, or for con-
<br />veyances in lieu of condemnation, are assigned and shall be paid to
<br />American, but in no event in excess of the amount of the outstanding
<br />Qbligation secured by this Mortgage and any expenses incurred b_r
<br />American in the collection of such proceeds. Also, ail pa~rnents or
<br />proceeds received by Mortgagor for any other voluntary or invalunta y,~
<br />granting of an easement., right-of-way; license, or other right to use
<br />the Property in favor of a utility or other entity or person having
<br />the power or right of condemnation, eminent domain, or similar taking
<br />are assigned and shall be paid to American. Mortgagor authorizes
<br />American to apply such awards, proceeds, damages, or payments, after
<br />the deduction of American's expenses incurred in the collection of
<br />such amounts, at American's option, to restoration or repair of the
<br />Property, or to payment of the sums secured by this Mortgage, whether
<br />or not then due, with the balance, if any, to be paid to Mortgagor.
<br />Mortgagor agrees to execute such further assignment of any awards,
<br />proceeds, damages, claims, or payments arising in connection with
<br />such condemnation or taking as American may require. If condemnation
<br />proceeds are applied to the payment of the indebtedness of Mortgagor
<br />to American, any such application of proceeds to principal shall be
<br />in inverse order of maturity, if applicable.
<br />12. The occurrence of any of the following events shall
<br />constitute an event of default hereunder:
<br />(a) A default in the payment when due of any of the
<br />obligation (or any interest thereon);
<br />(b) A failure to perform or observe according to its
<br />terms any other covenant contained in this Mortgage or the
<br />sJbli:gation;
<br />(c) As permitted by law, the filing of a voluntary
<br />~or involuntary petition in bankruptcy by or against Mortgagor or any
<br />other maker of the Note or the appointment of a receiver for any of
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