|
.•� '� �" ` , `� : MORTGAGE
<br />Loan No: 49943LP (Continued) 2 O 10 U 7 8 S 5 Page 3
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Inde6tsdness, 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 Lendar. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost af 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 Lender has not committed to the repair or restoration of the Property shall be used firs# 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 />Indebtedness. 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: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Grentor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value raplacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would 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 ic reqiiired tq dischar�� �r pay un�ler this• Mortsage or an;� P.elated !�o�umen:s, Lender Wn
<br />Grantor's behalf may (but shall not be obligated to1 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 />6ear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will IA) be payable on demand; (B) be added to the balance of
<br />the Note and be apportioned amvng and be payable with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable
<br />at the Note's maturity. Tha Martgage also will secure payment of these amounts. 5uch right shall be in addition to all other rights and
<br />remedies to which Lender may be entitled upon Pefault.
<br />WARRANTY; DEFENSE �F T'17LE. The following provisions relating to ownership of the Property are a part of this Mortgage:
<br />Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power,
<br />and authority to execute and deliver this Mortgage to Lender.
<br />Defense of Title. Subject to tha exception in the paragraph above, Grantor warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the
<br />interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in
<br />such proceeding, but Lender shall I�e entitled to participate in the proceeding and to ba represented in the proceeding by counsel of
<br />Lender's own choice, and Grantar will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time
<br />to time to permit such participation.
<br />Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival af Representations and Warranties. All representations, warranties, and agreements made 6y Grantor in this Mortgage shall
<br />survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such
<br />time as Grantor's Indebtedness shall 6e paid in full.
<br />CONDEMNATION. Tti� following provisior�s relating to �ondemnatio�� proceedir�s are a part e( thia Mortyaga:
<br />Proceedings. If any proceeding in candemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly
<br />take such steps as may be necessary to defend the action and o6tain the award. Grantor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to 6e represented in the proceeding by counsel of its own
<br />chpica, end Grantor will deliver or cause to be daliverad to Lender such instruments and documentativn as may be requested by
<br />Lender from time to time to permit such participa#ion.
<br />Application af Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings ar by any proceeding or
<br />purchase in lieu of condemnation, Lender may at its alection require that all or any portion of the net proceads of the award be applied
<br />to the Indebtedness or the repair or rastoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental
<br />taxes, fees and charges are a part of this Martgage:
<br />Curr�nt Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and
<br />take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse
<br />Lender for all taxes, as described below, together with all expanses incurred in recording, perfecting or continuing this Mortgage,
<br />including without limitation all taxes, fees, documentary stamps, and other chargas for recording or registering this Mortgage.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or
<br />any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to
<br />deduct from payments vn the Indebtedness secured 6y this type of Mortgage; (3) a tax on this type of Mortgage chargeable against
<br />the Lender or the hvlder af the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and
<br />interest made 6y Grantor.
<br />Su6sequent Texes. If any tax to which this section appliss is enactad subsequent to the date of this Mortgage, this event shall have
<br />the same effect as an Event of pefault, and Lender may exercise any or all of its available remedies for an Event of Default as
<br />provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
<br />Taxes and Lisns section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING S7ATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part
<br />of this Mortgage:
<br />Security Agreement. This instrument shall constitute a 5ecurity Agreement ta the extent any of the Property constitutes fixtures, and
<br />Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
<br />5ecurity Interest. Upon raquest by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's
<br />security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may,
<br />at any time and without further authorization from Gran#or, file executed counterparts, copies or reproductions of this Mprtgage as a
<br />financing statement. Grantor shall reim6urse Lender for all expenses incurred in perfecting or continuing this security interest. Upon
<br />default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon dafault, Grantor shall assemble any
<br />Personal Property not affixed to the Property in a manner and at a place reasona6ly convenient to Grantor and Lender and make it
<br />available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law.
<br />Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security
<br />interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page
<br />of this Mortgage.
<br />FURTHER ASSURANCES; ATTORNEY-IN-FAC7. The following provisions relating to further assurances and attorney-in-fac# are a part of
<br />this Mortgage:
<br />Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause
<br />to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause ta be filed, recorded,
<br />
|