|
~ er ~! ~ ~ ~~ ~_ ~ ~, ;.° MORTGAGE 2 p 10 0 0 8 51
<br />Loan No: 57296005729609 (Continued) Page 3
<br />Right to Contest. Grantor may withhold payment pf any tax, assessment, or claim in connection with a good faith dispute over the
<br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed,' within fifteen (15- days after Grantor has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, ar other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Grantor shall Hama Lender as an additional obligee under any
<br />surety bend furnished in the contest proceedings.
<br />Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<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 tp
<br />Lender that Grantor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating tp insuring the Property are a part of this Mortgage:
<br />Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements an a replacement 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. Addltipnally, Grantor shall maintain such other insurance, including
<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 frpm
<br />each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum pf ten (10) days' prior
<br />written notice to Lender and not containing any disclaimer of the insurer's liability far 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 ether person. Should the Real Property be located in an area designated by the Director pf the
<br />Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flopd
<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 Flpod Insurance Prpgram, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Grantor shall promptly notify Lender of any Ipss or damage to the Property. Lender may make proof of loss
<br />if Grantor fails to do so within fifteen (15) days pf the casualty. Whether pr 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 pf 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, pay or reimburse Grantor frpm 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 Lander has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender
<br />under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indabtadness. 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.
<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: 11) the name of the insurer; (2) the risks insured; (31 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.
<br />TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lender may require Grantor to maintain with Lender
<br />reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall be created by advance payment ar
<br />monthly payments of a sum estimated by Lender to be sufficient to produce, amounts at least equal to the taxes, assessments, and
<br />insurance premiums to be paid. The reserve funds shall be held by Lender as a general deposit from Grantor, which Lender may satisfy by
<br />payment of the taxes, assessments, and insurance premiums required to be paid by Grantor as they become due. Lender shall have the
<br />right to draw upon the reserve funds to pay such items, and Lender shall not be required to determine the validity or accuracy of any item
<br />before paying it. Nothing in the Mortgage shall be construed as requiring Lender to advance other mpnies for such purposes, and Lender
<br />shall not incur any liability for anything it may do or omit to do with respect to the reserve account. Subject to any limitations set by
<br />applicable law, if the reserve funds disclose a shortage or deficiency, Grantor shall pay such shortage or deficiency as required by Lender.
<br />All amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to withdraw
<br />and apply such amounts on the Indebtedness upon the occurrence of an Event of pefault. Lender shall not be required to pay any interest
<br />or earnings on the reserve funds unless raquirad by law or agreed tp by Lender in writing. Lender does not hold the reserve funds in trust
<br />for Grantor, and Lender is Hat Grantor's agent for payment of the taxes and assessments required to be paid by Grantor.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that wpuld 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 obligated 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 data incurred or paid by Lender to the date of repayment by Grantor. All such
<br />
|