CAUSE THIS SECURITY INSTRUMENT, AND ANY SECURITY INSTRUMENT
CREATING A LIEN OR SECURITY INTEREST OR EVIDENCING THE LIEN HEREOF UPON THE
PROPERTY AND EACH INSTRUMENT OF FURTHER ASSURANCE TO BE FILED, REGISTERED OR
RECORDED IN SUCH MANNER AND IN SUCH PLACES AS MAY BE REQUIRED BY ANY PRESENT OR
FUTURE LAW IN ORDER TO PUBLISH NOTICE OF AND FULLY PROTECT THE LIEN OR SECURITY
INTEREST HEREOF UPON,
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AND THE INTEREST OF LENDER IN, THE PROPERTY.
BORROWER WILL PAY ALL FILING,
REGISTRATION OR RECORDING FEES, AND ALL EXPENSES INCIDENT TO THE PREPARATION,
EXECUTION AND ACKNOWLEDGMENT OF THIS SECURITY INSTRUMENT, ANY MORTGAGE OR DEED
OF TRUST, AS APPLICABLE, SUPPLEMENTAL HERETO, ANY SECURITY INSTRUMENT WITH
RESPECT TO THE PROPERTY AND ANY INSTRUMENT OF FURTHER ASSURANCE, AND ALL
FEDERAL, STATE, COUNTY AND MUNICIPAL, TAXES, DUTIES, IMPOSTS, ASSESSMENTS AND
CHARGES ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS
SECURITY INSTRUMENT, ANY MORTGAGE OR DEED OF TRUST, AS APPLICABLE, SUPPLEMENTAL
HERETO, ANY SECURITY INSTRUMENT WITH RESPECT TO THE PROPERTY OR ANY INSTRUMENT
OF FURTHER ASSURANCE, EXCEPT WHERE PROHIBITED BY LAW TO DO SO, IN WHICH EVENT
LENDER MAY DECLARE THE DEBT TO BE IMMEDIATELY DUE AND PAYABLE.
BORROWER SHALL
HOLD HARMLESS AND INDEMNIFY LENDER AND ITS SUCCESSORS AND ASSIGNS, AGAINST ANY
LIABILITY INCURRED AS A RESULT OF THE IMPOSITION OF ANY TAX ON THE MAKING AND
RECORDING OF THIS SECURITY INSTRUMENT.
SECTION 2.05.
REPRESENTATIONS, WARRANTIES AND COVENANTS RELATING TO THE
PROPERTY.
BORROWER REPRESENTS AND WARRANTS TO AND COVENANTS WITH LENDER WITH
RESPECT TO THE PROPERTY AS FOLLOWS:
(A)
LIEN PRIORITY.
THIS SECURITY INSTRUMENT IS A VALID AND
ENFORCEABLE FIRST LIEN ON THE PROPERTY, FREE AND CLEAR OF ALL ENCUMBRANCES AND
LIENS HAVING PRIORITY OVER THE LIEN OF THIS SECURITY INSTRUMENT, EXCEPT FOR THE
ITEMS SET FORTH AS EXCEPTIONS TO, SUBORDINATE MATTERS IN, OR OTHERWISE DISCLOSED
IN THE TITLE INSURANCE POLICY INSURING THE LIEN OF THIS SECURITY INSTRUMENT,
NONE OF WHICH, INDIVIDUALLY OR IN THE AGGREGATE, MATERIALLY INTERFERE WITH THE
BENEFITS OF THE SECURITY INTENDED TO BE PROVIDED BY THIS SECURITY INSTRUMENT,
MATERIALLY AFFECT THE VALUE OR MARKETABILITY OF THE PROPERTY, MATERIALLY IMPAIR
THE USE OR OPERATION OF THE PROPERTY FOR THE USE CURRENTLY BEING MADE THEREOF OR
IMPAIR BORROWER'S ABILITY TO PAY ITS OBLIGATIONS IN A TIMELY MANNER (SUCH ITEMS
BEING THE "PERMITTED ENCUMBRANCES").
(B)
TITLE.
BORROWER HAS, SUBJECT ONLY TO THE PERMITTED ENCUMBRANCES,
GOOD, INSURABLE AND MARKETABLE FEE SIMPLE TITLE TO THE FEE PREMISES,
IMPROVEMENTS AND FIXTURES (THE IMPROVEMENTS AND FIXTURES, TOGETHER WITH THE
PREMISES ARE REFERRED TO COLLECTIVELY AS THE "REALTY") AND GOOD, INSURABLE AND
MARKETABLE LEASEHOLD TITLE TO THE LEASEHOLD PREMISES AND GOOD, INSURABLE AND
MARKETABLE TITLE TO ALL EASEMENTS AND RIGHTS BENEFITING THE REALTY AND HAS THE
RIGHT, POWER AND AUTHORITY TO MORTGAGE, ENCUMBER, GIVE, GRANT, BARGAIN, SELL,
ALIEN, ENFEOFF, CONVEY, CONFIRM, PLEDGE, ASSIGN, AND HYPOTHECATE THE PROPERTY.
BORROWER WILL PRESERVE ITS INTEREST IN AND TITLE TO THE PROPERTY AND WILL
FOREVER WARRANT AND DEFEND THE SAME TO LENDER AGAINST ANY AND ALL CLAIMS MADE