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HomeMy WebLinkAbout2543 ARTICLE FOUR LENDING PROVISIONS 4.01 Breach of Loan A reement and Other pocuments. Notwithstanding any ing to t e contrary containe in t is Mort- gage or in the Note, or in any other instrument securing the loan evidenced by such Note, Mortgagee may at its option declare the entire indebtedness secured hereby, and all interest thereon and alI advances made by Mortgagee hereunder, immediately due and . payable and/or exercise all additional rights accruing to it under this Mortgage upon an Event of Default in the event of a breach by Mortgagor of any covenant contained in this Mortgage, the Note, or in the Loan Agreement between Mortgagor and Mortgagee, which Loan Agreement is, by this reference, herein incorporated to the same extent and effect as though it were set forth herein in full. The proceeds of the loan secured hereby ,are to be disbursed by Mortgagee to Mortgagor in accordance with the provisions contained in the Loan Agreement. All advances and indebtedness arising and accruing under the Loan Agreement from time to time . shall be secured hereby. A breach of a covenant in any of the documents referred to above shall be deemed an Event of Default her~under and upon the occurrence of an Event of Default Mortgagee may, at its option, cease making advances to Mortgagor and take such other action as it may deem necessary to protect its security. In the event of a conflict between the terms hereof and the terms of the Loan Agreement, the terms of the document which shall either enlarge the interest of Mortgagee in the Mortgaged Property, grant~to Mortgagee greater financial security in the Mortgaged Property and/or assure payment of the Note and all sums secured hereby in full, shall control. 3 4.02 Future Advances. This mortgage is given to secure r not only existing indebtedness, but also such future advances, ~ whether such advances are obligatory or are to be made at the i option of the Mortgagee, or otherwise, as are made within f ifteen y years from the date hereof, to the same extent as if such future ' advances were made on the date of the execution of this mortgage. The total amount of indebtedness that may be so secured may = 9 decrease or increase from time ta time, but the total unpaid ~ balance so secured at one time shall not exceed twice the face ~ amount of the Note, plus interest thereon, and any disbursements ~ made for the payment of taxes, levies or insurance on the mort- ~ gaged property, with interest on such disbursements at the ~ Def ault Rate. ~ 4.03 Covenants of Guarantors. As a part of the induce- ~ ment to Mortgagee to make t e loan evidenced by the Note, Mort- ~ gagor has caused certain other persons, firms or corporations to enter into certain guaranty agreements with Mortgagee pertaining ~ to the financing and payment for construction of improvements on the Land. Mortgagor covenants and agrees that such persons, firms ~ or corporations shall fully perform, comply with and abide by such ~ agreements. It is further understood and agreed by Mortgagor ~ that such representation and agreements by the other persons, shall constitute, for the purpose of its obligations hereunder, - covenants on behalf of Mortgagor. . 4.04 Covenants of Mortgagor under Prior Mortgages and ~n ~ Rights of Mortgagee. ~ 5' (a) Mortgagor hereby covenants and agrees (i) to promptly observe and perform all of the covenants and conditions contained in any prior mortgage, to which this Mortgage may k; ~ be subject, to be observed or performed by Mortgagor and to ~ ~ ~s ~ ~ ~17~ V ~ r'. r ~ b~•~ ~ Pn~!~~rVz ' ~ F ~ _ ~ s~~ ~ ~ n_,_.~_~.. _ ~ ~-~.~_,w