HomeMy WebLinkAbout2545 (e) Any default by Mortgagor or any event of default
under any prior mortgage to which this Mortgage may be subject
shall constitute an Event of Default under this Mortgage.
(f) Upon the maturity of the Note and imnediately
prior to the payment of the principal balance of the Note, the
Mortqagor sh all prepay the outstanding principal balance re-
maining unpaid on the Prior Mortgage on such date, together
with accrued and unpaid interest thereon. The Mortqagee, by
its acceptance of this Mortgage, agrees that all payments of
interest or principal and interest on the Prior Mortgage, in-
cluding prepayments upon the maturity of the Note pursuant to
the immediately preceding sentence and prepayments upon the
Mortgagee's exercise of the Mortgagor's option to prepay, shall
be paid by the Mortgagee out of the balance of the proceeds of
the loan evidenced by the Note remaining undisbursed from time
to time, provided that no Event of Default shall have occurred
and be continuing and no svent shall have occurred and be con-
tinuing which with notice or the passage of time would constitute
an Event of Default. To the extent that the balance of the loan
proceeds held by the Mortgagee at any time is insufficient to
make any such payment of interest or principal and interest on
the Prior Mortgage, the Mortgagor shall deliver to the Mortgagee
not later than three days prior to the due date of such payment, ;
a check in the amount of such payment, payable to the order of ~
the holder of the~appropriate Prior Mortgage, and the Mortgagee ;
shall promptly forward such check to said holder. (
(g) The Mortgagor shall not, except with the prior
written consent of the Mortgagee or except as expressly pro- . ;
vided in this Section 4.09 or Section 4.07, prepay or attempt . i
to prepay all or any part of the principal balance of the
Prior Mortgage. ~
(h) The Mortgagor hereby irr~vocably designates the i
Mortgagee its agent and attorney-in-fact to (i) perform or ob- t
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serve on behalf of the Mortgagor any covenant or condition which ~
the Mortgagor fail.s to perform or observe under the Prior Mortgage ;
within any applicable grace period specified in such Prior Mort- ~
gage, (ii) exercise the right of the Mortgagor to prepay, upon }
the maturity of the Note, the outstanding principal balance re- ~
maining unpaid on the Prior Mortgage, and (iii) exercise the #
; right of the Mortgagor to prepay the Prior Mortgage at any time ;
after an Event of Default shall have occurred and while it shall ;
~ be continuing. Any advances made by the Mortgagee in connection ~
with any action authorized by any provision contained herein ,
~ shall be repaid by the Mortgagor on demand, with interest, and ~
~ the amount so advanced, with interest, shall be a lien upon the ;
x Mortgaged Property and shall be secured by this Mortgage. The '
~ performance or observance of such covenant or condition by the
Mortgagee shall not prevent the Mortgagor's failure so to per- ;
~ form or observe from constituting an Event of Default. In
~ performing or observing any such covenant or condition, the
~ Mortgagee shall have the right to enter upon the Mortgaged
~ Property. Upon receipt by the Mortgagee from the holder of `
~ any Prior Mortgage of any notice of default under such Prior ;
~ Mortgage, the Mortgagee may rely thereon and take any action
~ permitted by any provision contained herein to remedy such ~
~ default, notwithstanding that the existence of such default }
~ or the nature thereof may be questioned or denied by the Mort- ~
- gagor. ~ ,
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- 4.05 No Increase in Amount Secured b Prior Mort a es. '
Mortgagor will not o anything, or permit or suffer anything to
} be done or left undone, which would increase or result in an in-
~ crease in the indebtedness or other sums secured by a prior mort-
~ gage to which this Mortgage may be subject. Any breach of or de-
~ fault under the foregoing provisions of this Paragraph 4.05 shall
constitute an Event of Default under this Mortgage.
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