|
4. The Owner covenants with the HRA the following statutory covenants;
<br /> a. To warrant the title to the Property; subject to permitted encumbrances as set forth in
<br /> Exhibit C.
<br /> b. To pay the indebtedness as herein provided.
<br /> c. To pay all taxes.
<br /> d. That the Property shall be kept in repair and no waste shall be committed.
<br /> e. That the whole of the principal sum shall become due after default,in the payment of any
<br /> installment of principal or interest, or of any tax, or in the performance of any other
<br /> covenant,at the option of the HRA.
<br /> f. To pay principal and interest on prior mortgages.
<br /> 5. If default be made in any payment or covenant herein,the HRA shall have the statutory power of
<br /> sale,and on foreclosure may retain statutory costs and attorney's fees.
<br /> 6. For the protection of the HRA,the Owner will,during all the time until the indebtedness secured by
<br /> this mortgage is fully paid,maintain all risk property insurance,naming the HRA as an additional
<br /> insured, in an amount not less than the full insurable replacement value of the Property. Said
<br /> insurance shall be written by a company or companies licensed to do business in Minnesota and
<br /> rated Class A-:V11 or better by A.M. Best Company. The term"full insurable replacement value"
<br /> shall mean the actual replacement cost of the Property(excluding foundation and excavation costs
<br /> and costs of underground flues,pipes,drains,and other items customarily omitted from replacement
<br /> cost valuation for insurance purposes),without deduction for depreciation. The Owner will assign
<br /> and deliver the policies of such insurance to the HRA so and in such manner and form that the HRA
<br /> shall at all times,until the full payment of said indebtedness, have and hold the said policies as a
<br /> collateral and further security for the payment of said indebtedness,or at the option of the HRA will
<br /> make such policies payable in case of loss to the HRA as its interest may appear and will deposit
<br /> them with the HRA,and in default of so doing,that the I-IRA may,but has no obligation to,obtain
<br /> such insurance from year to year,or for one or more years at a time,and pay the premiums therefor,
<br /> and that the Owner will forthwith repay to the HRA the same,with interest at the mortgage rate,and
<br /> that the same shall become a part of the debt secured by this mortgage in like manner as the principal
<br /> sum. The Owner may retain any moneys received by him/her on the policies, but the same shall
<br /> apply in part payment of this mortgage.
<br /> 7. This Mortgage shall terminate and shall be of no further force or effect upon payment in full of the
<br /> Installment Loan and accrued interest thereon.
<br /> 8. The Owner will indemnify, save, and hold harmless the HRA, the City of Elk River, Minnesota,
<br /> Central Minnesota Housing Partnership,Inc.,their officers,agents,and employees,from and against
<br /> any claim,cause of action,damage,liability,loss or expense, including attorney's fees incurred by
<br /> the HRA,made by any party in connection with or arising from(i)the presence,if any,of hazardous
<br /> • wastes or pollutants on the Property;(ii)any loss or damage to property or any injury to or death of
<br /> any person occurring at or about or resulting from any defect in the Property,(iii)the performance
<br /> of,or failure to perform,this Mortgage. Nothing herein shall be deemed a waiver of any statutory
<br /> limitations of liability or immunity.
<br /> 9. This Mortgage shall run with the aforesaid real estate and shall inure to the benefit of and be binding
<br /> upon the parties hereto and their respective heirs,executors,representatives,successors,and assigns.
<br /> 10. Any forbearance by the HRA in exercising any right or remedy shall not be a waiver of or preclude
<br /> the exercise of any right or remedy.
<br />
|