HomeMy WebLinkAbout0241mortgages and preservation of security as provided at law. No act
of Mortgagee shall be construed either as an election to proceed
under any one provision herein or under the Note to the exclusion
of any other provi~ion, or as an election of remedies to the bar
of any other remedy allowed at law or in equity, any provision
herein or otherwise to the contrary notwithstanding.
14. It is understood and agreed that funds to be advanced under
the Note are to be used in the construction and development of the
Premises, and said funds shall be advanced in accordance with a cer-
tain Construction Loan Agreement (herein referred to as the "Loan
Agreement") made by and'between Mortgagor and Mortgagee of even
date herewith and to which Loan Agreement reference~is made for
atl purposes to the same extent and effect as if fully set forth
herein and made a part hereof. Upon the failure of Mortgagor to
keep and perfo rm all of the covenants, conditions and agreements
of the Loan Agreement, then Mort9agee may, at its option, declare
the entire principal sum of the Note, or so much thereof as shall
have been advanced, with interest thereon as accrued, immediately
due and payable. Any default under the Loan Agree~nent shall be
deemed an Event of Default hereunder.
15. Mortgagee shall be subrogated to the lien of any arid all prior
encumbrances, liens or charges paid and discharged from the proceeds
of the Note, and even if a:-y such prior lien shall have been released
of record, the repayment of the Note shall be secured by such liens
on the portions of the Premises affected thereby to the extent of
such payments, respectively.
16. Mortgagor shall keep the Premises free from all prior liens
and, upon demand of Mortgagee, pay for and procure the release of
any lien which in any way may impair the security of this mortgage
and security agreement. If Mortgagee shall incur or expend any
sums, including reasonable attorney's fees, whether in connection
with any action or proceeding or not, to sustain the lien of this
mortgage and security agreement or its priority, or to protect or
enfoxce any of its rights hereunder, or to recover any of the Se-
curec3 Indebted ness, or for any title examination or title insurance
policy relating to the title to the Premises, all such sums shall
on notice and demand be paid by Mortgagor, together with the inter-
est thereon at the rate applicahle under the Note from and after
maturity, and shall be a lien on the Premises, prior to ar~y right
or title to, interest in, or claim upon, the Premises subordinate
to the lien of this mortgage and security agreement, and shall be
added to the Secured Indebtedness. In any action or proceedint~ to
foreclose this mortgage and security agreement, or to recover or
collect the Secured Indebtedness, the provisions of law respecting
the recovery of costs, disbursements and allowances shall prevail
unaffected by this covenant.
17. Should Mortgagor desire to transfer, sell, convey or lease,
either directly or indirectly, all or any portion of the Premises,
or any interest therein, Mortgagor covenants first to obtain the
prior written consent of Mortgagee anthorizing such transfer. Fai1-
ure ta obtain written consent from Mortgagee shall constitute an
Event of Default hereunder anci shall authorize Mortgagee to exercise
any or all of the rights and powers set forth in Article 10 herein.
Mortgagee hereby consents to the leasing of the Premises pursuant to
the terms and conditions of the K mart Lease and to the proposed
transfer of the Premises pursuant to the terms and conditions.of
that certain Contract for the Purchase and Sale of Real Property
dated December 4, 1980 between Mortgagor and K mart Corporation.
-14-
~ .
~
~.:
~.. ~ri~~-«..r . ... _ .T.. . ..- ,..--_.~
F,~~x348 pA~f 241
~
- : r ..~