Laserfiche WebLink
"First Lien Mortgage") and a mortgage in favor of Economic Development Authority of the City <br /> of Elk River in the amount of up to $185,200.00 (the "Second Lien Mortgage") and those other <br /> certain permitted encumbrances identified in Exhibit B hereto (the "Permitted Encumbrances"); <br /> that Mortgagee shall quietly enjoy and possess the Mortgaged Property; that Mortgagor will <br /> warrant and defend the title to the Mortgaged Property against all claims, whether now existing <br /> or hereafter arising. The covenants and warranties of this paragraph shall survive foreclosure of <br /> this Mortgage and shall run with the Land. <br /> AND IT IS FURTHER COVENANTED AND AGREED AS FOLLOWS: <br /> ARTICLE ONE <br /> GENERAL COVENANTS,AGREEMENTS, WARRANTIES <br /> 1.1. Payment of Obligations; Observance of Covenants. Mortgagor will duly pay and <br /> perform its Obligations and will perform all other agreements and covenants by Mortgagor to be <br /> performed hereunder. <br /> 1.2. Payment of Impositions. Mortgagor agrees to pay, before a penalty might attach <br /> for nonpayment thereof, all taxes, assessments, water and sewer charges, and other fees, taxes <br /> and charges of whatsoever nature levied upon or assessed or placed against the Mortgaged <br /> Property (collectively "Impositions"). Mortgagor will likewise pay all taxes, assessments and <br /> other charges, levied upon or assessed, placed or made against, or measured by, this Mortgage, <br /> or the recordation hereof, or the Obligations, provided that Mortgagor shall not be obliged to pay <br /> such tax, assessment or charge if such payment would be contrary to law or would result in the <br /> payment of an usurious rate of interest on the Obligations. Mortgagor shall promptly furnish to <br /> Mortgagee all notices received by Mortgagor of amounts due under this Section and upon <br /> Mortgagee's request, shall deliver proper receipts evidencing the payment of such amounts. In <br /> the event of a judicial decree or legislative enactment after the date of this Mortgage, providing <br /> that any such imposition may not be lawfully paid by Mortgagor, or in the event that the payment <br /> of any such imposition by Mortgagor would result in the payment of a usurious rate of interest <br /> on the Obligations, the Obligations, together with interest, shall become immediately due and <br /> payable, or, at Mortgagee's option, Mortgagee may pay any amount or portion of such <br /> Imposition as renders the Obligations unlawful or usurious, in which event Mortgagor shall <br /> concurrently therewith pay the remaining lawful and non-usurious portion or balance of said <br /> Imposition. <br /> 1.3. Payment of Operating Costs; Prior Mortgages and Liens. Mortgagor agrees that it <br /> will pay, or cause to be paid, all operating costs and expenses of the Mortgaged Property; keep <br /> the Mortgaged Property free from mechanics' and material suppliers' and other liens, subject to <br /> Mortgagor's right to contest in good faith as set forth in Section 1.4 hereof; will keep the <br /> Mortgaged Property free from levy, execution or attachment and will immediately pay when due <br /> all indebtedness which may be secured by mortgage, lien or charge on the Mortgaged Property <br /> and upon request will exhibit to Mortgagee satisfactory evidence of such payment and discharge. <br /> 3 <br /> 477384v3 EL185-40 <br />