|
5.4 I-lolder may collect the proceeds of any and all insurance that may become payable with
<br />respect to any part of the Mortgaged Property and, at its option, may use the same to rebuild or restore the
<br />improvemenls on the Mortgaged Properly or may apply the same to the Obligation in the order and
<br />manner set forth in Section 3, whether then matured or to mature in the future, and may deduct therefrom
<br />any expenses incurred in connection with the collection or handling of such proceeds, it being understood
<br />that Holder shall not be, under any circumstances, liable or responsible for failure to collect, or exercise
<br />diligence in the collection of, any of such proceeds. Provided (i) no Event of Default has occurred and is
<br />continuing, and (ii) any repairs or restoration can be completed for an amount equal to or Icss than the
<br />proceeds of available insurance, Holder shall not unreasonably refuse the application of insurance
<br />proceeds to the repair and restoratron of the improvements on the Mortgaged Property,
<br />5.5 At the request of Holder, Grantor shall create a fund or reserve for the payment of all
<br />insurance premiums, taxes, and assessments against the Mortgaged Property by paying to Holder,
<br />contemporaneously with each installment of principal and interest on the Note, a sum equal to the
<br />premiums that will next become due and payable on the hazard insurance policies covering the
<br />Mortgaged Property, or any part thereof, plus taxes and assessments next due on the Mortgaged Property,
<br />or any part thereof, as estimated by Holder, less all sums paid previously to Holder therefor, divided by
<br />the number of months to elapse before one month prior to the date when such premiums, taxes and
<br />assessments will become delinquent, such sums to be held by Holder, with interest, for the purposes of
<br />paying such premiums, taxes, and assessments. Any deficiency shall be paid by Grantor to Holder on or
<br />before the date when such premmms, taxes, and assessments, shall become delinquent. Transfer of legal
<br />title to the Mortgaged Property shall automatically transfer title in all sums deposited under the provisions
<br />of this section.
<br />5.6 This instrument is one of the "Loon Documents" referred to in the Loan Agreement, and
<br />the provisions relating to Loan Documents set forth therein are incorporated herein by reference, the same
<br />as if set forth herein verbatim.
<br />5.7 Holder may now have or may hereafter acquire estates or interests in all or portions of the
<br />Mortgaged Property in addition to the Liens hereof. Grantor expressly agrees that, without the express
<br />written consent and agreement of Holder, none of such estates or interests and the Liens hereof shall ever
<br />merge, but shall always remain separate, notwithstanding that such estates, interests, or Liens should be
<br />owned by or vested in the same party or parties at the same time, by purchase, foreclosure, or otherwise,
<br />5.8 Grantor hereby waives all rights of marshaling in event of any foreclosure of the Liens
<br />hereby created. GRANTOR HEREBY WAIVES THE PROVISIONS OF TEXAS PROPERTY
<br />CODE SECTION 51.003(8)-(D), AS MAYBE AMENDED.
<br />5.9 Certain of the Accessories are or are to become fixtures related to the Land, and with
<br />respect thereto this instrument shall be effective as a financing statement Filed as a tixture tiling from the
<br />date of its tiling in the real estate records in Hays County, Texas. For purposes thereof, Grantor is the
<br />debtor and Mortgagee is the secured party, and the addresses of bath are set forth above.
<br />5.10 IIolder shall have all of the rights of a secured party, including, without limitation, the
<br />authority to file a financing statement to perfect its security interest under the CiCC, or under the Uniform
<br />Conunercial Code in force in any state to the extent the same is applicable law.
<br />5.11 This instrument has simuhaneou5ly been executed in a number of identical counterparts,
<br />each of which, for all purposes, shall be deemed an original for all purposes and all of which constitute,
<br />collectively, one instrument.
<br />F,-10
<br />93~fl97 7 '
<br />
|