Agenda - Council - 02/14/2017 - Laserfiche WebLink

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PART 4. LOAN SECURITY AND GUARANTY 4.1 Secured Collateral. Collateral securing all advances made on described in this Agreement shall be as follows: a. Third Mortgage. The Borrower grants Lender a Third Property. The legal description of the Property is: all loan accommodations priority mortgage on the THAT PRT OF LOTS 4 & 5 AUD SUP NO 96 DESC AS FOL: COM AT MEAN COR ON W LINE Ur SEC 35 SD COR BEING 620.5 FT S OF W1/4 COR OF SD SAC (SD W LINE TO BE CONSIDERED TO BE A TRUE MERIDAN), TH S 55 DEG 12MIN E 375,4 FT, TH 5 68 DEG 17 MIN E 106 FT, TH N PRLL/W W LINE OF SD SEC 560.6 FT TO POE, TH COLT N ON SD PRLL LINE 169.4 FT, TH N 24 DEG 21 MIN E 105,6 FT TO S LINE OF ST HWY NO 14, TH NWLY ALG 5(1 5 LINE TO A FT 394 FT SELY OF INTER OF SD 5 LINE WITH W LINE OF SD SEC AS MEAS ALG SD S LINE (SD PT BEING HEREAFTER REFERRED TO AS FT A), TH SWLY AT AN ANG OF 64 I}EG 24 MIN FROM A LINE DRAWN PRLL/W NLINE OF GOVT LOT I & PASSING THROUGH PT A 123 FT +•/- TC A PT 3D$.5 FT E OF W LINE OF SD SEC (AS MEAS PRLLJ'W N LINE OF SD GOVT LOT), TH S PRLL/W SD W LINE To INTER/W A LINE DRAWN W AT RT ANG TO SD PRLL LINE FROM POB, TH E TO FOB EX RDS, SUN TO EASE OF REC b. The Collateral. The Property and the Third Mortgage proceeds are hereinafter referred to collectively as (the "Collateral".) 4.2 Ownership and care of Collateral, Borrower and Guarantor covenant that this Agreement and any security agreement/mortgage taken in connection with this Agreement will vest in Lender a second priority security interest/mortgage upon the Collateral named, and that the Collateral is free from all liens, security interests and encumbrances except those listed on Exhibit B attached hereto and made a part hereof (the "Permitted Encumbrances"). Borrower warrants it has good marketable title to the Collateral subject to no security interest or lien except as described herein. 4,3 Documentation required to maintain valid Gen. Borrower and Guarantors covenant that upon request of Lender they will execute such financing statements, security agreements, lien documents, and other perfection and security instrumentation as will ensure that Lender creates and maintains a valid and perfected second security interest/mortgage lien on the Collateral, 4.4 Flood and Hazard Insurance Coverage. During the term of the Loan, Borrower shall maintain the following insurance coverages: a. Flood Insurance. Based on the Standard Flood Hazard Determination (FEMA Form 81-93): If any portion of a building that is collateral for the Loan is located in a special flood hazard area, Borrower must obtain flood insurance for the building under the NFIP, Insurance coverage must contain a MORTGAGEE CLAUSE (or substantial equivalent) in favor of Lender and CMDC. This clause must provide that any action or failure to act by Borrower, the mortgagor or owner of the insured Property will not invalidate the interest of Lender and CMDC. The policy or endorsements must provide for at least 10 days prior written notice to Lender and CMDC of policy cancellation. b. Real Estate Hazard Insurance coverage on all real estate that is collateral for the Loan in the amount of the full replacement cost. If full replacement cost insurance in 4