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replacements of such property, substitutions for such
property, additions to such property, and the proceeds
thereof (all of said property described above, and the
replacements, substitutions and additions thereto and the t
proceeds thereof being hereinafter collectively referred to
as the "Collateral"), and that a security interest in and to ~
the Collateral is hereby granted to the Mortgagee, and the ~
Collateral and all right, title and interest of Mortgagors ~
and Developer therein are hereby assigned to the Mortgagee,
all to secure payment of the indebtedness and to secure
performance by the Mortgagors and Developer of the terms,
covenants and provisions hereof, but subject to the rights
of any Construction Lender. Upon occurrence of an Event of
Default under the Mortgage, the Mortgagee, pursuant to the
appropriate provisions of the Code, shall have the option of
proceeding with respect to the Collateral as to both real
and personal property in accordance with its rights and
remedies with respect to the real property, in which event
the default provisions of the Code shall not apply. The
parties agree that, in the event the Mortgagee shall a Lect
to proceed with respect to the Collateral separately from
the real property, five (5) days notice of the sale of the
Collateral shall be reasonable notice. The reasonable
expenses of retaking, holding, preparing for sale, selling
and the like incurred by the Mortgagee shall include, but
not bg limited to, reasonable attorneys' Eees and legal
expenses incurred by Mortgagee. Mortgagors and Developer
agree that, without the written consent of the Mortgagee,
Developer will not remove or permit to be_removed from the
~ Premises any of the Collateral except that so long as there
'i is no default hereunder, Developer shall be permitted to
sell or otherwise dispose of the Collateral when obsolete,
j worn out, inadequate,~unserviceable or unnecessary for use
j in the .operation of the Premises, upon_ replacing the same
or substituting for the same other collateral at least equal
in value to the initial value of that disposed of and in
such a manner so that said Collateral shall be subject to
the security interest created hereby, it being expressly
understood and agreed that all replacements of the Colla-
teral and any additions to the Collateral shall be and
become immediately subject to the security interest of the
Mortgage and covered thereby. Developer shall,.from time to
time, on request of the Mortgagee, deliver to the Mortgagee ~
an inventory of the Collateral in reasonable detail.
Mortgagors and Developer covenant and represent that all
Collateral now is, and that all replacements thereof,
substitutions therefor or additions thereto, unless the ~
Mortgagee otherwise consents, will be free and clear of
superior liens, encufinbrances or the security interests
of others, excepting only the lien of any Construction
Mortgage.
ARTICLE IV
~ .
OBLIGATIONS WITS RESPECT TO
CONSTRUCTION MORTGAGES
4.01. Payment and Performance. Developer will
promptly pay when due and payable the interest, installments ~
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