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3. As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and
<br /> the cost, including reasonable attorney's fees, of collectingthe Owner hereby same, and subject to the terms and
<br /> conditions of this Mortgage,
<br /> grants,and HRA shall and hereby does have,a statutory
<br /> mortgage on the Property in accordance with Minnesota Statutes, Section 507.15.
<br /> 4. The Owner covenants with the HRA the following statutory covenants;
<br /> a. To warrant the title to the Property; subject to permitted encumbr
<br /> Exhibit C. antes as set forth in
<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
<br /> installment of principal or interest, or of any payment of any
<br /> 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
<br /> retainhave the statutory power of
<br /> sale,and on foreclosure may statutory costs and attorney's fees.
<br /> 6. For the protection of the HRA,the Owner will,duringall the time until
<br /> this mortgage is fullypaid, maintain the indebtedness secured by
<br /> ain all risk property insurance, naming the HRA as an additional
<br /> insured, in an amount not less than the full insurable replacement value
<br /> insurance shall be written bya company P a ue,of the Property. Said
<br /> p y or companies licensed to do business in Minnesota and
<br /> rated Class A-:VII 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
<br /> purposes), ut deduction for depreciation. The Owner will assign
<br /> and deliver the policies of such insurance to the HRA so and in such manner g
<br /> shall at all times, until the full payment of a and form that the HRA
<br /> said indebtedness, have and hold the said policies as a
<br /> collateral and further security for the payment of said indebtedness,or at the '
<br /> make such policies payable in case option of the HRA will
<br /> P Y of loss to the HRA as its interest may appear and will deposit
<br /> osit
<br /> them with the HRA,and in default of so doing,that the HRA may, but P
<br /> such insurance from year toyear,or for Y� has no obligation to,obtain
<br /> 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
<br /> of the debtat the mortgage rate,and
<br /> that the same shall become a
<br /> part secured by this mortgage in like manner as the principal
<br /> sum. The Owner may retain any moneys received by him/her on the olicies p
<br /> apply in part payment of this mortgage. P , but the same shall
<br /> 7. This Mortgage shall terminate and shall be of no further force or effect
<br /> Installment Loan and accrued interest thereon. upon payment in full of the
<br /> 8. The Owner will indemnify, save, and hold harmless the HRA, the
<br /> Central Minnesota HousingPartnership,Inc., City of Elk River, Minnesota,
<br /> p, nc. their officers,agents,and employees,from and against
<br /> any claim,cause of action, damage, liability, loss or expense, includingattorney's
<br /> the HRA,made by any party in connection with or arising � s fees incurred by
<br /> arls�ng from(i)the presence,if any,of hazardous
<br /> wastes or pollutants on the Property;(ii)any loss or damage to property or any
<br /> any person occurring at or about or resulting fromp �any defect in the injury to or death of
<br /> Property, (iii)the performance
<br /> of, or failure to perform,this Mortgage. Nothing herein shall be deemed
<br /> limitations of liability or immunity.
<br /> a waiver of any statutory
<br /> S-2
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