Common use of Additional Covenants and Agreements of Borrower Clause in Contracts

Additional Covenants and Agreements of Borrower. Borrower makes the following additional covenants and agreements with Lender: a. Any award of damages under condemnation or payment in lieu thereof for injury to or the taking of all or any part of the Mortgaged Premises are hereby assigned to Lender and shall be paid first, for amounts due and payable to Lender with authority to apply the award or payment to the indebtedness outstanding on the Note. b. Any proceeds of any insurance payable by reason of loss or damage to the Mortgaged Premises are hereby assigned to Lender and shall be paid first, for amounts due and payable to Lender with authority to apply the proceeds to the indebtedness outstanding on the Note. c. Borrower shall hold Lender harmless from all costs and expenses in connection with establishing the priority of this Mortgage, and, if ▇▇▇▇▇▇ becomes a party to any mechanic’s lien suit or other proceeding relating to the Mortgaged Premises or to this Mortgage, Borrower shall reimburse Lender for ▇▇▇▇▇▇’s reasonable attorneys’ fees, costs, and expenses in connection with said suit or proceeding. d. Borrower shall not sell, convey, mortgage, pledge, grant a security interest in, or otherwise transfer or encumber all or any part of the Mortgaged Premises or any interest therein without the prior written consent of Lender. e. Borrower shall promptly pay when due all charges for utilities or other services to the Mortgaged Premises including, but not limited to, water, sanitary sewer, electricity, gas, telephone, and trash and garbage removal and, upon request of Lender, shall provide evidence of such payment. f. Borrower shall use and occupy the Mortgaged Premises as ▇▇▇▇▇▇▇▇’s principal residence as long as this Mortgage is in effect, unless ▇▇▇▇▇▇ otherwise agrees in writing. g. Borrower shall not lease or rent provided however that this covenant shall prohibit not the Borrower from receiving payments from members of ▇▇▇▇▇▇▇▇’s family in compensation for room and board. h. If the Mortgaged Premises is subject to declaration or restrictive covenants (the “Declaration”) for the benefit of a property owner’s association, Borrower shall: (i) timely pay, or cause the payment of, all assessments (if any), levied by the property owner’s association against the Mortgaged Premises pursuant to the terms and conditions of the Declaration or any amendments thereto; and (ii) comply with all of the terms and conditions of the Declaration. i. If the Mortgaged Premises is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower’s obligations under the Declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. j. Borrower shall comply or cause compliance with all laws and regulations of any governmental authority which affects the Mortgaged Premises or the manner of using or operating the same. k. If any of the Mortgaged Premises is located in a federally designated flood prone area, and if flood insurance is available for that area, Borrower shall procure and maintain flood insurance in amounts reasonably satisfactory to Lender. Borrower shall also procure and maintain liability insurance against claims for bodily injury, death, and property damage occurring on or about the Mortgaged Premises in amounts reasonably satisfactory to Lender and naming Lender as an additional insured, all for the protection of Lender.

Additional Covenants and Agreements of Borrower. Borrower makes the following additional covenants and agreements with Lender: a. Any award of damages under condemnation (a) Borrower shall keep all buildings, improvements, and fixtures now or payment in lieu thereof for injury to or the taking of later located on all or any part of the Mortgaged Premises Property (collectively, the “Improvements”) insured against loss by fire, lightning, and such other perils as are hereby assigned to Lender included in a standard all-risk endorsement, and shall be paid first, for amounts due and payable to Lender with authority to apply the award or payment to the indebtedness outstanding on the Note. b. Any proceeds of any insurance payable by reason of against loss or damage to the Mortgaged Premises are hereby assigned to Lender by all other risks and hazards covered by a standard extended coverage insurance policy, including, without limitation, vandalism, malicious mischief, burglary, theft, and if applicable, steam boiler explosion. Such insurance shall be paid first, for amounts due and payable to Lender with authority to apply in an amount no less than the proceeds to the indebtedness outstanding on the Note. c. Borrower shall hold Lender harmless from all costs and expenses in connection with establishing the priority of this Mortgage, and, if ▇▇▇▇▇▇ becomes a party to any mechanic’s lien suit or other proceeding relating to the Mortgaged Premises or to this Mortgage, Borrower shall reimburse Lender for ▇▇▇▇▇▇’s reasonable attorneys’ fees, costs, and expenses in connection with said suit or proceeding. d. Borrower shall not sell, convey, mortgage, pledge, grant a security interest in, or otherwise transfer or encumber all or any part full replacement cost of the Mortgaged Premises or any interest therein Improvements, without the prior written consent of Lender. e. Borrower shall promptly pay when due all charges deduction for utilities or other services to the Mortgaged Premises including, but not limited to, water, sanitary sewer, electricity, gas, telephone, and trash and garbage removal and, upon request of Lender, shall provide evidence of such payment. f. Borrower shall use and occupy the Mortgaged Premises as ▇▇▇▇▇▇▇▇’s principal residence as long as this Mortgage is in effect, unless ▇▇▇▇▇▇ otherwise agrees in writing. g. Borrower shall not lease or rent provided however that this covenant shall prohibit not the Borrower from receiving payments from members of ▇▇▇▇▇▇▇▇’s family in compensation for room and board. h. If the Mortgaged Premises is subject to declaration or restrictive covenants (the “Declaration”) for the benefit of a property owner’s association, Borrower shall: (i) timely pay, or cause the payment of, all assessments (if any), levied by the property owner’s association against the Mortgaged Premises pursuant to the terms and conditions of the Declaration or any amendments thereto; and (ii) comply with all of the terms and conditions of the Declaration. i. If the Mortgaged Premises is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower’s obligations under the Declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. j. Borrower shall comply or cause compliance with all laws and regulations of any governmental authority which affects the Mortgaged Premises or the manner of using or operating the same. k. physical depreciation. If any of the Mortgaged Premises is Improvements are located in a federally designated flood prone area, and if flood insurance is available for that area, Borrower shall procure and maintain flood insurance in amounts reasonably satisfactory to Lender. Borrower shall also procure and maintain liability insurance against claims for bodily injury, death, and property damage occurring on or about the Mortgaged Premises Property in amounts reasonably satisfactory to Lender and naming Lender as an additional insured, all for the protection of the Lender. (b) Each insurance policy required pursuant to Paragraph 3(a) must contain provisions in favor of Lender affording all right and privileges customarily provided under the so-called standard mortgagee clause. Each policy must be issued by an insurance company or companies licensed to do business in Minnesota and acceptable to Lender. Each policy must provide for not less than ten (10) days written notice to Lender before cancellation, non-renewal, termination, or change in coverage. Borrower will deliver to Lender a duplicate original or certificate of such insurance policies and of all renewals and modifications of such policies. (c) If the Property is damaged by fire or other casualty, Borrower must promptly give notice of such damage to Lender and the insurance company. In such event, the insurance proceeds paid on account of such damage will be applied to payment of the amounts owed by Borrower pursuant to the Note, even if such amounts are not otherwise then due, unless Borrower is permitted to make an election as described in the next paragraph. Such amounts first will be applied to unpaid accrued interest and next to the principal to be paid as provided in the Note in the inverse order of their maturity. Such payment(s) will not postpone the due date of the installments to be paid pursuant to the Note or change the amount of such installments. The balance of insurance proceeds, if any, will be the property of Borrower. (d) Notwithstanding the provisions of Paragraph 3(c), and unless otherwise agreed by Borrower and Lender in writing, if (i) Borrower is not in default under this Mortgage (or after Borrower has cured any such default); (ii) the mortgagees under any prior mortgages do not require otherwise; and (iii) such damage does not exceed ten percent (10%) of the then assessed market value of the Improvements, then Borrower may elect to have that portion of such insurance proceeds necessary to repair, replace, or restore the damaged Property (the “Repairs”) deposited in escrow with a bank or title insurance company qualified to do business in Minnesota, or such other party as may be mutually agreeable to Lender and Borrower. The election may only be made by written notice to Lender within sixty (60) days after the damage occurs; and the election will only be permitted if the plans, specifications, and contracts for the Repairs are approved by Lender, which approval shall not be unreasonably withheld, conditioned, or delayed. If such a permitted election is made by Borrower, Lender and Borrower shall jointly deposit the insurance proceeds into escrow when paid. If such insurance proceeds are insufficient for the Repairs, Borrower shall, before the commencement of the Repairs, deposit into such escrow sufficient additional money to insure the full payment for the Repairs. Even if the insurance proceeds are unavailable or are insufficient to pay the cost of the Repairs, Borrower shall at all times be responsible to pay the full cost of the Repairs. All escrowed funds shall be disbursed in accordance with sound, generally accepted, construction disbursement procedures. The costs incurred or to be incurred on account of such escrow shall be deposited by Borrower into such escrow before the commencement of the Repairs. Borrower shall complete the Repairs as soon as reasonably possible and in a good and workmanlike manner, and in any event the Repairs shall be completed by Borrower within one (1) year after the damage occurs. If, following the completion of and payment for the Repairs, there remains any undisbursed escrow funds, such funds shall be applied to payment of the amounts owed by Borrower under the Note in accordance with Paragraph 3(c). (e) If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain or is conveyed in lieu thereof under threat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu thereof must be applied to payment of the amounts due by Borrower to Lender under the Note as set forth in Paragraph 3(c), even if such amounts are not then due to be paid. (f) Borrower will diligently complete all Improvements, if any, that may now or hereafter be under construction on the Property. (g) Borrower will pay all dues, fees, or assessments, if any, which are due and payable by Borrower to any homeowners or similar association as a result of the Property’s inclusion therein. (h) Borrower will pay any other expenses and attorneys’ fees incurred by Lender pursuant to the Note or as reasonably required for the protection of the lien of this Mortgage.