07-23-2003 Council Agenda - Laserfiche WebLink

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together with all hereditaments and appurtenances belonging thereto (the Property). TO HAVE AND TO HOLD THE SAME, to Mortgagee forever. Mortgagor covenants with Mortgagee as follows: That Mortgagor is lawfully seized of the Property and has good right to convey the same; that the Property is free from all encumbrances, except as follows: covenants, conditions, restrictions and easements of record that Mortgagee shall quietly enjoy and possess the same, and that Mortgagor will warrant and defend the title to the same against all lawful claims not hereinbefore specifically excepted. PROVIDED, NEVERTHELESS, That if Mortgagor shall pay to Mortgagee the sum of $200,000.00, according to the terms of a promissory note of even date herewith (the Note), the final payment being due and payable on January 22, 2006 with interest at the rate provided in the Promissory Note made by The Lodge at Little Canada LLC and Mortgagor dated January 22, 2003, and shall repay to Mortgagee, at the times and with interest as specified, all sums advanced in protecting the lien of this Mortgage, in payment of taxes on the Property and assessments payable therewith, insurance premiums covering buildings thereon, principal or interest on any prior liens, expenses and attorney's fees, herein provided for and sums advanced for any other purpose authorized herein, and shall keep and perform all the covenants and agreements herein contained, then this Mortgage shall be null and void, and shall be released at Mortgagor's expense. As set forth in Section 6.6 of that certain Development Agreement between Mortgagor and Mortgagee of even date herewith, Mortgagor is obligated to construct certain "Minimum Improvements" on the Property which will constitute a common interest community consisting of 44 units. If the common interest community is a condominium, Mortgagee must consent to Mortgagor's execution and recording of the common interest community documents and must release individual units in the common interest community, and the respective undivided interests in the common elements in the common interest community, from the lien of this Mortgage upon Mortgagor's payment to Mortgagee, for application to the amounts due under the Note, of the sum of $10,000 per unit. If the common interest community Mortgagor establishes on the Property is a planned community, Mortgagee must release common elements of the common interest community from the lien of this Mortgage upon Mortgagee's receipt of evidence from the Mortgagor that the common elements have been conveyed to the common interest community association, and Mortgagor must release units in the common interest community from this Mortgage upon developer's payment of the sum of $10,000 to Mortgagor for application to the amounts due under the terms of the Promissory Note. AND MORTGAGOR covenants with Mortgagee as follows: 1. to pay the principal sum of money and interest as specified in the Note; 2. to pay all taxes and assessments now due or that may hereafter become liens against the Property before penalty attaches thereto; 3. to keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended coverage perils, vandalism, malicious mischief and, if applicable, steam boiler explosion, for at least the amount of full 1455685v6 n 1 2 -