PREMISES AND WILL WARRANT
AND DEFEND ITS TITLE TO THE SAME FREE OF ALL LIENS AND ENCUMBRANCES, OTHER THAN
THE PERMITTED ENCUMBRANCES SET FORTH ON ATTACHED EXHIBIT B AND HAS GOOD RIGHT
AND LAWFUL AUTHORITY TO GRANT, BARGAIN, SELL, CONVEY, MORTGAGE AND GRANT A
SECURITY INTEREST IN THE PREMISES AS PROVIDED HEREIN.
1.11
CREDIT AGREEMENT.
THIS MORTGAGE SECURES AN
OBLIGATION INCURRED FOR THE CONSTRUCTION OF AN IMPROVEMENT ON LAND AND IS A
"CONSTRUCTION MORTGAGE" AS THAT TERM IS USED IN THE UNIFORM COMMERCIAL CODE.
THIS MORTGAGE IS THE MORTGAGE REFERRED TO IN AND IS ALSO GIVEN AS SECURITY FOR
THE DUE AND PUNCTUAL PERFORMANCE, OBSERVANCE AND PAYMENT BY THE BORROWER OF THE
TERMS AND CONDITIONS SET FORTH IN THE CREDIT AGREEMENT, THE TERMS AND CONDITIONS
OF WHICH ARE INCORPORATED HEREIN BY REFERENCE.
IN ADDITION TO ITS REMEDIES
HEREUNDER, THE LENDER MAY, BUT SHALL NOT BE REQUIRED TO, AVAIL ITSELF OF ANY OR
ALL OF THE RIGHTS AND REMEDIES AVAILABLE TO IT UNDER THE CREDIT AGREEMENT, AND
ANY SUMS EXPENDED BY THE LENDER IN AVAILING ITSELF OF SUCH RIGHTS AND REMEDIES
SHALL BEAR INTEREST THEREON AT THE RATE SPECIFIED IN THE CREDIT AGREEMENT AND
SHALL BE SO MUCH ADDITIONAL INDEBTEDNESS SECURED HEREBY, AND SHALL BE PAYABLE TO
THE LENDER IMMEDIATELY
7
UPON DEMAND; PROVIDED THAT, NO SUCH PAYMENT BY THE LENDER SHALL BE CONSIDERED AS
WAIVING THE EVENT OF DEFAULT.
2.
UNIFORM COMMERCIAL CODE SECURITY AGREEMENT
2.1
SECURITY AGREEMENT.
THIS MORTGAGE SHALL
CONSTITUTE A SECURITY AGREEMENT AS DEFINED IN THE UNIFORM COMMERCIAL CODE
("CODE") IN THE ITEMS DESCRIBED IN THE GRANTING CLAUSES OF THIS MORTGAGE
("COLLATERAL").
ANY COLLATERAL INSTALLED IN OR USED IN THE PREMISES ARE TO BE
USED BY THE BORROWER SOLELY FOR BORROWER'S BUSINESS PURPOSES OR AS THE EQUIPMENT
AND FIXTURES LEASED OR FURNISHED BY THE BORROWER, AS LANDLORD, TO TENANTS OF THE
PREMISES AND SUCH COLLATERAL WILL BE KEPT AT THE BUILDINGS ON THE PREMISES AND
WILL NOT BE REMOVED THEREFROM WITHOUT THE CONSENT OF THE LENDER AND MAY BE
AFFIXED TO SUCH BUILDINGS BUT WILL NOT BE AFFIXED TO ANY OTHER REAL ESTATE.
THE
REMEDIES OF THE LENDER HEREUNDER ARE CUMULATIVE AND SEPARATE, AND THE EXERCISE
OF ANY ONE OR MORE OF THE REMEDIES PROVIDED FOR HEREIN OR UNDER THE UNIFORM
COMMERCIAL CODE SHALL NOT BE CONSTRUED AS A WAIVER OF ANY OF THE OTHER RIGHTS OF
THE LENDER INCLUDING HAVING ANY COLLATERAL DEEMED PART OF THE REALTY UPON ANY
FORECLOSURE THEREOF.
IF NOTICE TO ANY PARTY OF THE INTENDED DISPOSITION OF THE
COLLATERAL IS REQUIRED BY LAW IN A PARTICULAR INSTANCE, SUCH NOTICE SHALL BE
DEEMED COMMERCIALLY REASONABLE IF GIVEN AT LEAST TEN (10) DAYS PRIOR TO SUCH
INTENDED DISPOSITION AND MAY BE GIVEN BY ADVERTISEMENT IN A NEWSPAPER ACCEPTED
FOR LEGAL PUBLICATIONS EITHER SEPARATELY OR AS PART OF A NOTICE GIVEN TO
FORECLOSE THE REAL PROPERTY OR MAY BE GIVEN BY PRIVATE NOTICE IF SUCH PARTIES
ARE KNOWN TO LENDER.
NEITHER THE GRANT OF A SECURITY INTEREST PURSUANT TO THIS
MORTGAGE NOR THE FILING