PRIN MICROECONOMICS ECON 101
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lQ2 50028 515 3161 name address and phone number of preparer State of Iowa Space Above This Line For Recording Data OPENEND REAL ESTATE MORTGAGE With Future Advance Clause 1 DATE AND PARTIES The date of this Mortgage is ZOJ 1999 and the parties and their addresses are as follows MORTGAGOR ERIC PROPERTIES LIMITED LIABILITY COMPANY I I I I c I I I I I I I I I I I I I I I I u I I I I I I o I I a I I I I I I I a I I I o D I I I I I I o I I I I I I I I I I I I I I n I I I I I I o I o I I I c I I I v I I I I I I I I I I I I I I I I I o I a I I I I o I I o I I I I I I I I I I I a I I I I n I I I I I o I I I n I I I I I I I I I I I I I I o I I u o I o I I I I I o I I I I o I I I I II I I o I I I I I I I I n a I I I I I I I I I u I o I I I I c I o I I I I I I I I I I I I a I I a I I I I I I I I I I I I I I e I I I I I I I o I n I I o o I I I I I I I I I I I o a I I I o n I I I I o I I I I I I I I I I I I I I I I o I I I n I I I I I I I I I I I I I I o I a I I I a I o I I I a I I I I I I I I I I c I I n I I I a I I I I I I I I I I I I I n I I I I C I l I I I I I a I I I I I I I I o I I I I I I I I u I o I I a I I I I a I I a I a I o I I I I I I I I I u I I I o I I I I a a I I I I I I I I o I I I a I I I I I o I I I I I I o I I I I I a o I I I a I I I I o a I I I I I I D Refer to the Addendum which is attached and incorporated herein for additional Mortgagors LENDER ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF IOWA I I I I I I a I I I I I I I I I I I I I a o I I I I I I I O I I I I I I I n I I I I I I I I o I I I I I I I I I I I I I I I I I I I I I I I I I I a I o I I I I I I I I I I a I I I I I I I I I I I I I A I I I n I I a I I I I o I I I I I I n I I a II I I I I I I I I a I I a I o Q u I C I I I 0 I I I I I I I I I o I o I I I I o o a I I I I I I I I I a I I I I o I I Q I I I I I I I I a I I I I I I I I I o I I o I I I a c I o I I I I I I I I I I I I I I I a I I I o I I I I I I a I o I n I I I I I I I c I I I I I I I o o a I I I I I a I I I I a I I o I I O I I I I o I o I I I I I i I I I I I u o I I l I I I I I I I I I I I o I o o I I I I I I I o I I I I I a I I o I I I I 0 I I I I I o I n I I I I I I I I I I I I I I I I I I I I I I I I I I I 2 MORTGAGE For good and valuable consideration the receipt and sufficiency of which is acknowledged and to secure the Secured Debt hereafter defined Mortgagor grants bargains warrants conveys and mortgages to Lender the following describcd property THE WEST so FEET OF IOI A IN BLOCK 21 ON ELAIE39S ADDITION TO AMEs IOWA The property is located in at County Iowa 5QQl l Address City ZIP Code Together with all rights easements appurtenances royalties mineral rights oil and gas rights crops timber all diversion payments or third party payments made to crop producers and all existing and future improvements structures xtures and replacements that may now or at any time in the future be part of the real estate described above all referred to as quotPropertyquot The term Property also includes but is not limited to any and all water wells water ditches reservoirs reservoir sites and dams located on the real estate and all riparian and water rights associated with the Property however established NOTICE THIS MORTGAGE SECURES CREDIT IN THE AMOUNT OF s 76Q75OQ LOANS AND ADVANCES UP TO THIS AMOUNT TOGETHER WITH INTEREST ARE SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED OR FILED MORTGAGES AND LIENS 3 MAXIMUM OBLIGATION LIMIT The total principal amount of the Secured Debt hereafter defined secured by this Mortgage at any one time shall not exceed the amount stated above This limitation of amount does not include interest loan charges commitment fees brokerage commissions attorneys fees and other charges validly made pursuant to this Mortgage and does not apply to advances or interest accrued on such advances made under the terms of this Mortgage to protect Lender s security and to perform any of the covenants contained in this Mortgage Future advances are contemplated and along with other future obligations are secured by this Mortgage even though all or part may not yet be advanced Nothing in this Mortgage however shall constitute a commitment to make additionai or future loans or advances in any amount Any such commitment would need to be agreed to in a separate writing 4 SECUIUED DEBT DEFINED The term quotSecured Debtquot includes but is not limited to the following A The promissory notes contracts guarantys or other evidence of debt described below and all extensions renewals modifications or substitutions Evidence of Debt 76975299 O o u o I I I o I I I I I I I I I I I a l I I I I o I I c I o O I I I I I I I O I I I I a I I I I I I o I I I I I 0 I I n I I I I I I I c I I I I o I I c I I I I I I I I I I I n I I I I n o a I I I I I I I I I I I I n I I a I o I I I I u n I I I I I I I I I I I I I I I I I I II I I I I a o n o I I I I I I I I I O I Q I o I O I O o I I I I I I n I I I I I I I I o I I I I I I l I I I I a I o I I I I I I I I I I I I I I o I o I o I I I I I I 1 I o I I I I I I I I I n I I o I I I I I I I I I I I I I I I I I I I I I I o I I I I I a I I I I u I I I I I I I II I I I I I o I I I I u o a I I I o I I I I I I I I I O I n I I I o n o I I o I I I I I I o I I I I I I I I I I I I I I I I I I I I I I I I I o u I I I I a I I o I A I I I I I I I I I I I I I I I I I n o o I I I I I I I I 10 11 12 B All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note contract guaranty or other evidence of debt existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in the evidence of debt and whether or not such future zgdxgances or obligations are incurred for any purpose that was related or unrelated to the purpose of the Evidence of C t C All obligations Mortgagor owes to Lender which now exist or may later arise to the extent not prohibited by law including but not limited to liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender All additional sums advanced and expenses incurred by Lender for insuring preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Mortgage plus interest at the highest rate in effect from time to time as provided in the Evidence of Debt E Mortgagor s performance under the terms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing guarantying or otherwise relating to the debt If more than one person signs this Mortgage as Mortgagor each Mortgagor agrees that this Mortgage will secure all future advances and future obligations described above that are given to or incurred by any one or more Mortgagor or any one or more Mortgagor and others This Mortgage will not secure any other debt if Lender fails with respect to such other debt to make any required disclosure about this Mortgage or if Lender fails to give any required notice of the right of rescrssron PAYMENTS Mortgagor agrees to make all payments on the Secured Debt when due and in accordance with the terms of the Evidence of Debt or this Mortgage WARRANTY OF TITLE Mortgagor covenants that Mortgagor is lawfully seized of the estate conveyed by this Mortgage and has the right to grant bargain warrant convey sell and mortgage the Property and warrants that the Property is unencumbered except for encumbrances of record CLAIMS AGAINST TITLE Mortgagor will pay all taxes assessments liens encumbrances lease payments ground rents utilities and other charges relating to the Property when due Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor s payment Mortgagor will defend title to the Property against any claims that would impair the lien of this Mortgage Mortgagor agrees to assign to Lender as requested by Lender any rights claims or defenses which Mortgagor may have against parties who supply labor or materials to improve or maintain the Property PRIOR SECURITY INTERESTS With regard to any other mortgage deed of trust security agreement or other lien document that created a prior security interest or encumbrance on the Property and that may have priority over this Mortgage Mortgagor agrees A To make all payments when due and to perform or comply with all covenants B To promptly deliver to Lender any notices that Mortgagor receives from the holder C Not to make or permit any modification or extension of and not to request or accept any future advances under any note or agreement secured by the other mortgage deed of trust or security agreement unless Lender consents in wrttlng DUE ON SALE OR ENCUMBRANCE Lender may at its option declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien encumbrance transfer or sale or contract for any of these on the Property However if the Property includes Mortgagor s residence this section shall be subject to the restrictions imposed by federal law 12 C FR 591 as applicable For the purposes of this section the term quotPropertyquot also includes any interest to all or any part of the Property This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is released TRANSFER OF AN INTEREST IN THE MORTGAGOR If Mortgagor is an entity other than a natural person such as a corporation or other organization Lender may demand immediate payment if 1 a beneficial interest in Mortgagor is sold or transferred 2 there is a change in either the identity or number of members of a partnership or similar entity or 3 there is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity However Lender may not demand payment in the above situations if it is prohibited by law as of the date of this Mortgage ENTITY WARRANTIES AND REPRESENTATIONS If Mortgagor is an entity other than a natural person such as a corporation or other organization Mortgagor makes to Lender the following warranties and representations which shall be continuing as long as the Secured Debt remains outstanding A Mortgagor is an entity which is duly organized and validly existing in the Mortgagor s state of incorporation or organization Mortgagor is in good standing in all states in which Mortgagor transacts business Mortgagor has the power and authority to own the Property and to carry on its business as now being conducted and as applicable is qualified to do so in each state in which Mortgagor operates B The execution delivery and performance of this Mortgage by Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor have been duly authorized have received all necessary governmental approval and will not violate any provision of law or order of court or governmental agency C Other than disclosed in writing Mortgagor has not changed its name within the last ten years and has not used any other trade or fictitious name Without Lender s prior written consent Mortgagor does not and will not use any other name and will preserve its existing name trade names and franchises until the Secured Debt is satisfied PROPERTY CONDITION ALTERATIONS AND INSPECTION Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary Mortgagor will give Lender prompt notice of any loss or damage to the Property Mortgagor will keep the Property free of noxious weeds and grasses Mortgagor will not initiate 101nm or consent to any change in any private restrictive covenant zoning ordinance or other public or private restriction limiting or defining the uses which may be made of the Property or any part of the Property without Lender s prior written consent Mortgagor will notify Lender of all demands proceedings claims and actions against Mortgagor or any other owner made under law or regulation regarding use ownership and occupancy of the Property Mortgagor will comply with all legal requirements and restrictions whether public or private with respect to the use of the Property Mortgagor also agrees that the nature of the occupancy and use will not change without Lender s prior written consent No portion of the Property will be removed demolished or materially altered without Lender s prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property free from any title retention device security agreement or other encumbrance Such page 2 of 6 1993 Bankers Systems Inc St Cloud MN LEGO3972341 Form AGCO MTGIA 62195 13 14 16 17 replacement of personal property will be deemed subject to the security interest created by this Mortgage Mortgagor shall not partition or subdivide the Property without Lender s prior written consent Lender or Lender s agents may at Lender s option enter the Property at any reasonable time for the purpose of inspecting the Property Any inspection of the Property shall be entirely for Lender s benefit and Mortgagor will in no way rely on Lender s inspection AUTHORITY TO PERFORM If Mortgagor fails to perform any of Mortgagor s duties under this Mortgage or any other mortgage deed of trust security agreement or other lien document that has priority over this Mortgage Lender may without notice perform the duties or cause them to be performed Mortgagor appoints Lender as attorney in fact to sign Mortgagor s name or pay any amount necessary for performance If any construction on the Property is discontinued or not carried on in a reasonable manner Lender may do whatever is necessary to protect Lender s security interest in the Property This may include completing the construction Lender s right to perform for Mortgagor shall not create an obligation to perform and Lender s failure to perform will not preclude Lender from exercising any of Lender s other rights under the law or this Mortgage Any amounts paid by Lender for insuring preserving or otherwise protecting the Property and Lender s security interest will be due on demand and will bear interest from the date of the payment until paid in full at the interest rate in effect from time to time according to the terms of the Evidence of Debt ASSIGNMENT OF LEASES AND RENTS Mortgagor grants bargains warrants and conveys as additional security all the right title and interest in and to any and all A Existing or future leases subleases licenses guaranties and any other written or verbal agreements for the use and occupancy of any portion of the Property including any extensions renewals modifications or substitutions of such agreements all referred to as quot Leases quot B Rents issues and profits all referred to as quotRentsquot including but not limited to security deposits minimum rent percentage rent additional rent common area maintenance charges parking charges real estate taxes other applicable taxes insurance premium contributions liquidated damages following default cancellation premiums quotloss of rentsquot insurance guest receipts revenues royalties proceeds bonuses accounts contract rights general intangibles and all rights and claims which Mortgagor may have that in any way pertain to or are on account of the use or occupancy of the whole or any part of the Property Mortgagor will promptly provide Lender with true and correct copies of all existing and future Leases Mortgagor may collect receive enjoy and use the Rents so long as Mortgagor is not in default Mortgagor will not collect in advance any Rents due in future lease periods unless Mortgagor first obtains Lender s written consent Upon default Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds Any amounts collected shall be applied at Lender s discretion to payments on the Secured Debt as therein provided to costs of managing the Property including but not limited to all taxes assessments insurance premiums repairs and commissions to rental agents and to any other necessary related expenses including Lender s attorneys fees and court costs Mortgagor acknowledges that this assignment is immediately effective between the parties to this assignment and effective as to third parties on the recording of this Mortgage Mortgagor agrees that Lender is entitled to notify Mortgagor or Mortgagor s tenants to make payments of Rents due or to become due directly to Lender after such recording however Lender agrees not to notify Mortgagor s tenants until Mortgagor defaults and Lender notifies Mortgagor of the default and demands that Mortgagor and Mortgagor s tenants pay all Rents due or to become due directly to Lender lnnnediately after Lender gives Mortgagor the notice of default Mortgagor agrees that either Lender or Mortgagor may immediately notify the tenants and demand that all future Rents be paid directly to Lender On receiving the notice of default Mortgagor will endorse and deliver to Lender any payments of Rents If Mortgagor becomes subject to a voluntary or involuntary bankruptcy then Mortgagor agrees that Lender is entitled to receive relief from the automatic stay in bankruptcy for the purpose of making this assignment effective and enforceable under state and federal law and within Mortgagor s bankruptcy proceedings Mortgagor covenants that no default exists under the Leases or any applicable landlord law Mortgagor also covenants and agrees to maintain and to require the tenants to comply with the Leases and any applicable law Mortgagor will promptly notify Lender of any noncompliance If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases then Lender may at Lender s option enforce compliance Mortgagor will obtain Lender s written authorization before Mortgagor consents to sublet modify cancel or otherwise alter the Leases to accept the surrender of the Property covered by such Leases unless the Leases so require or to assign compromise or encumber the Leases or any future Rents Mortgagor will hold Lender harmless and indemnify Lender for any and all liability loss or damage that Lender may incur as a consequence of the assignment under this section CONDOMINIUMS PLANNED UNIT DEVELOPMENTS If the Property includes a unit in a condominium or a planned unit development Mortgagor will perform all of Mortgagor s duties under the covenants bylaws or regulations of the condominium or planned unit development DEFAULT Mortgagor will be in default if any of the following occur A Any party obligated on the Secured Debt fails to make payment when due B A breach of any term or covenant in this Mortgage any prior mortgage or any construction loan agreement security agreement or any other document evidencing guarantying securing or otherwise relating to the Secured Debt The making or furnishing of any verbal or written representation statement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any person or entity obligated on the Secured Debt The death dissolution or insolvency of appointment of a receiver for or application of any debtor relief law to Mortgagor or any person or entity obligated on the Secured Debt I A good faith belief by Lender at any time that Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the Property is impaired A material adverse change in Mortgagor s business including ownership management and financial conditions which Lender in its opinion believes impairs the value of the Property or repayment of the Secured Debt or Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity as further explained in 7 C FR Part l940 Subpart G Exhibit M 9771 REMEDIES ON DEFAULT In some instances federal and state law will require Lender to provide Mortgagor with notice of the right to cure mediation notices or other notices and may establish time schedules for foreclosure actions Subject to these limitations if any Lender may accelerate the Secured Debt and foreclose this Mortgage in a manner provided by law if this Mortgagor is in default page 3 of 6 1993 Bankers Systems Inc St Cloud MN 18003972341 Form AGCOMTGIA 62195 18 19 20 21 At the option of Lender all or any part of the agreed fees and charges accrued interest and principal shall become immediately due and payable after giving notice if required by law upon the occurrence of a default or anytime thereafter In addition Lender shall be entitled to all the remedies provided by law the Evidence of Debt other evidences of debt this Mortgage and any related documents All remedies are distinct cumulative and not exclusive and the Lender is entitled to all remedies provided at law or equity whether expressly set forth or not The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender s right to require full and complete cure of any existing default By not exercising any remedy on Mortgagor s default Lender does not waive Lender s right to later consider the event a default if it continues or happens again REDEMPTION Mortgagor agrees that in the event of foreclosure of this Mortgage at the sole discretion of Lender Lender may elect to reduce or extend the period of redemption for the sale of the Property to a period of time as may then be authorized under the circumstances and under any section of Iowa Code Chapter 628 or any other Iowa Code section now in effect or as may be in effect at the time of foreclosure EXPENSES ADVANCES ON COVENANTS ATTORNEYS FEES COLLECTION COSTS Except when prohibited by law Mortgagor agrees to pay all of Lender s expenses if Mortgagor breaches any covenant in this Mortgage Mortgagor will also pay on demand all of Lender s expenses incurred in collecting insuring preserving or protecting the Property or in any inventories audits inspections or other examination by Lender in respect to the Property Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protecting Lender s rights and remedies under this Mortgage including but not limited to attorneys fees court costs and other legal expenses Once the Secured Debt is fully and finally paid Lender agrees to release this Mortgage and Mortgagor agrees to pay for any recordation costs All such amounts are due on demand and will bear interest from the time of the advance at the highest rate in effect from time to time as provided in the Evidence of Debt and as permitted by law ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES As used in this section 1 quotEnvironmental Lawquot means without limitation the Comprehensive Environmental Response Compensation and Liability Act CERCLA 42 USC 9601 et seq all other federal state and local laws regulations ordinances court orders attorney general opinions or interpretive letters concerning the public health safety welfare environment or a hazardous substance and 2 quotHazardous Substancequot means any toxic radioactive or hazardous material waste pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health safety welfare or environment The term includes without limitation any substances defined as quothazardous materialquot quottoxic substancesquot quothazardous wastequot or quothazardous substancequot under any Environmental Law Mortgagor represents warrants and agrees that except as previously disclosed and acknowledged in writing A No Hazardous Substance has been is or will be located transported manufactured treated refined or handled by any person on under or about the Property except in the ordinary course of business and in strict compliance with all applicable Environmental Law B Mortgagor has not and will not cause contribute to or permit the release of any Hazardous Substance on the Property C Mortgagor will immediately notify Lender if 1 a release or threatened release of Hazardous Substance occurs on under or about the Property or migrates or threatens to migrate from nearby property or 2 there is a violation of any Environmental Law concerning the Property In such an event Mortgagor will take all necessary remedial action in accordance with Environmental Law D Mortgagor has no knowledge of or reason to believe there is any pending or threatened investigation claim or proceeding of any kind relating to 1 any Hazardous Substance located on under or about the Property or 2 any violation by Mortgagor or any tenant of any Environmental Law Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation claim or proceeding In such an event Lender has the right but not the obligation to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings E Mortgagor and every tenant have been are and shall remain in full compliance with any applicable Environmental Law There are no underground storage tanks private dumps or open wells located on or under the Property and no such tank dump or well will be added unless Lender first consents in writing Mortgagor will regularly inspect the Property monitor the activities and operations on the Property and confirm that all permits licenses or approvals required by any applicable Environmental Law are obtained and complied with Mortgagor will permit or cause any tenant to permit Lender or Lender s agent to enter and inspect the Property and review all records at any reasonable time to determine 1 the existence location and nature of any Hazardous Substance on under or about the Property 2 the existence location nature and magnitude of any Hazardous Substance that has been released on under or about the Property or 3 whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law I Upon Lender s request and at any time Mortgagor agrees at Mortgagor s expense to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender The choice of the environmental engineer who will perform such audit is subject to Lender s approval J Lender has the right but not the obligation to perform any of Mortgagor s obligations under this section at Mortgagor s expense As a consequence of any breach of any representation warranty or promise made in this section 1 Mortgagor will indemnify and hold Lender and Lender s successors or assigns harmless from and against all losses claims demands liabilities damages cleanup response and remediation costs penalties and expenses including without limitation all costs of litigation and attorneys fees which Lender and Lender s successors or assigns may sustain and 2 at Lender s discretion Lender may release this Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Mortgage without prejudice to any of Lender s rights under this Mortgage B L Notwithstanding any of the language contained in this Mortgage to the contrary the terms of this section shall survive any foreclosure or satisfaction of this Mortgage regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property Any claims and defenses to the contrary are hereby waived CONDEMNATION Mortgagor will give Lender prompt notice of any action real or threatened by private or public entities to purchase or take any or all of the Property including any easements through condemnation eminent domain or any other means Mortgagor further agrees to notify Lender of any proceedings instituted for the establishment of any sewer water conservation ditch drainage or other district relating to or binding upon the Property or any39part of it Mortgagor authorizes Lender to intervene in Mortgagor s name in any of the above described actions or claims and to page 4 of 6 1993 Bankers Systems Inc St Cloud MN 18003972341 Form AGCOMTGA 62195 collect and receive all sums resulting from the action or claim Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property Such proceeds shall be considered payments and will be applied as provided in this Mortgage This assignment of proceeds is subject to the terms of any prior mortgage deed of trust security agreement or other lien document 22 INSURANCE Mortgagor agrees to maintain insurance as follows 23 24 25 26 27 28 A Mortgagor shall keep the improvements now existing or hereafter built on the Property insured against loss by fire hazards included within the term quotextended coveragequot and any other hazards including floods or flooding for which Lender requires insurance This insurance shall be maintained in the amounts and for the periods that Lender requires The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender s approval which shall not be unreasonably withheld If Mortgagor fails to maintain the coverage described above Lender may at Lender s option obtain coverage to protect Lender s rights in the Property according to the terms of this Mortgage All insurance policies and renewals shall be acceptable to Lender and shall include a standard quotmortgage clausequot and where applicable quotlender loss payee clausequot Mortgagor shall immediately notify Lender of cancellation or termination of the insurance Lender shall have the right to hold the policies and renewals If Lender requires Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices Upon loss Mortgagor shall give immediate notice to the insurance carrier and Lender Lender may make proof of loss if not made immediately by Mortgagor Unless Lender and Mortgagor otherwise agree in writing insurance proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repair is economically feasible and Lender s security is not lessened If the restoration or repair is not economically feasible or Lender s security would be lessened the insurance proceeds shall be applied to the Secured Debt whether or not then due with any excess paid to Mortgagor If Mortgagor abandons the Property or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim then Lender may collect the insurance proceeds Lender may use the proceeds to repair or restore the Property or to pay the Secured Debt whether or not then due The 30day period will begin when the notice is given Unless Lender and Mortgagor otherwise agree in writing any application of proceeds to principal shall not extend or postpone the due date of scheduled payments or change the amount of the payments If the Property is acquired by Lender Mortgagor s right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition B Mortgagor agrees to maintain comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to Lender insuring against claims arising from any accident or occurrence in or on the Property Mortgagor agrees to maintain rental loss or business interruption insurance as required by Lender in an amount equal to at least coverage of one year s debt service and required escrow account deposits if agreed to separately in writing under a form of policy acceptable to Lender NO ESCROW FOR TAXES AND INSURANCE Unless otherwise provided in a separate agreement Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS Mortgagor will provide to Lender upon request any financial statement or information Lender may deem necessary Mortgagor warrants that all financial statements and information Mortgagor provides to Lender are or will be accurate correct and complete Mortgagor agrees to sign deliver and file as Lender may reasonably request any additional documents or certifications that Lender may consider necessary to perfect continue and preserve Mortgagor s obligations under this Mortgage and Lender s lien status on the Property If Mortgagor fails to do so Lender may sign deliver and file such documents or certificates in Mortgagor s name and Mortgagor hereby irrevocably appoints Lender or Lender s agent as attorney in fact to do the things necessary to c0mply with this section JOINT AND INDIVIDUAL LIABILITY CO SIGNERS SUCCESSORS AND ASSIGNS BOUND All duties under this Mortgage are joint and individual If Mortgagor signs this Mortgage but does not sign the Evidence of Debt Mortgagor does so only to mortgage Mortgagor s interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt Mortgagor agrees that Lender and any party to this Mortgage may extend modify or make any change in the terms of this Mortgage or the Evidence of Debt without Mortgagor s consent Such a change will not release Mortgagor from the terms of this Mortgage The duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender If this Mortgage secures a guaranty between Lender and Mortgagor and does not directly secure the obligation which is guarantied Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including but not limited to antr deficrency or one action laws APPLICABLE LAW SEVERABILITY INTERPRETATION This Mortgage is governed by the laws of the jurisdiction in which Lender is located except to the extent otherwise required by the laws of the jurisdiction where the Property is located This Mortgage is complete and fully integrated This Mortgage may not be amended or modi ed by oral agreement Any section or clause in this Mortgage attachments or any agreement related to the Secured Debtuthat con icts with applicable law will not be effective unless that law expressly or impliedly permits the variations by written agreement If any section or clause of this Mortgage cannot be enforced according to its terms that section or clause Will be severed and will not affect the enforceability of the remainder of this Mortgage Whenever used the singular shall include the plural and the plural the singular The captions and headings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define the terms of this Mortgage Time is of the essence in this Mortgage NOTICE Unless otherwise required by law any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party s address on page 1 of this Mortgage or to any other address designated in writing Notice to one mortgagor will be deemed to be notice to all mortgagors WAIVERS Except to the extent prohibited by law Mortgagor waives any rights relating to reinstatement the marshalling of liens and assets all rights of dcwer and distributive share and all homestead exemption rights relating to the Property page 5 0f 6 1993 Bankers Systems Inc St Cloud MN 18003972341 Form AGCOMTGIA 62195 29 UCC PROVISIONS If checked the following are applicable to but do not limit this Mortgage 3 Construction Loan This Mortgage secures an obligation incurred for the construction of an improvement on the Property 3 Fixture Filing Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property 3 Crops Timber Minerals Rents Issues and Profits Mortgagor grants to Lender a security interest in all crops timber and minerals located on the Property as well as all rents issues and profits of them including but not limited to all Conservation Reserve Program CRP and Payment in Kind PIK payments and similar governmental programs all of which shall also be included in the term quot Property quot Ci Personal Property Mortgagor grants to Lender a security interest in all personal property located on or connected with the Property This security interest includes all farm products inventory equipment accounts documents instruments chattel paper general intangibles and all other items of personal property Mortgagor owns now or in the future and that are used or useful in the construction ownership operation management or maintenance of the Property The term quotpersonal propertyquot specifically excludes that property described as quothousehold goodsquot secured in connection with a quotconsumerquot loan as those terms are defined in applicable federal regulations governing unfair and deceptive credit practices 1 Filing As Financing Statement Mortgagor agrees and acknowledges that this Mortgage also suffices as a financing statement and as such may be led of record as a nancing statement for purposes of Article 9 of the Uniform Commercial Code A carbon photographic image or other reproduction of this Mortgage is sufficient as a financing statement 30 OTHER TERMS If checked the following are applicable to this Mortgage 3 Purchase Money Mortgage This is a purchase money mortgage as defined by Iowa law 3 Line of Credit The Secured Debt includes a revolving line of credit provision Although the Secured Debt may be reduced to a zero balance this Mortgage will remain in effect until released Ci Agricultural Property Mortgagor covenants and warrants that the Property will be used principally for agricultural or farming purposes and that Mortgagor is an individual or entity allowed to own agricultural land as specified by law E Additional Terms I I n n I I I I q O I u A o I I u u u I n I s u n I u I o a o I o u I c a I u a o I c u I u n I I I v a u a u I o u n a a a o o I I o g u n I n u c I I n n u a a o I I u n u t t o u o o o o u o o n u n a a I o c I u a u I n a o o I I I y I n u I I a I u I u I u u I I I o o o o I I o a n o I I a I g I I n n a I n a I I u o c o I n o v Q o o I a u a a u I n a u I o I t o u c o u a I u I 0 n O I a o I a n Q a I a I u o o o I u o c v o n I w I a I a s t a I c o I u I a o I l c o I I c a a u I a o u n I o I a I a o I g a o o o a I o I n I u I n I I n u o I I a SIGNATURES By signing below Mortgagor agrees to the terms and covenants contained in this Mortgage and in any attachments Mortgagor also acknowledges receipt of a copy of this Mortgage on the date stated above on Page I gActual authority was granted to the parties signing below by resolution signed and dated 2OJ999 Entity Name Entity Name LIMITED LIABILITY COMPANY BY SignatureEVEfREIT W COCHRANE III Date Signatu IKE MYERS I MANAGER Date BY Signature RUSSEL MCCULLOUGH W Date Signature Date E Refer to the Addendum which is attached and incorporated herein for additional Mortgagors signatures and acknowledgments ACKNOWLEDGMENT STATE OF COUNTY OF ss On this day of before me a Notary Public in the state of Iowa personally appeared Individual to me known to be the persons named in and who executed the foregoing instrument and acknowledged that executed the same as voluntary act and deed My commission expires 56339 Notary Public STATE or COUNTY or 53 On this day of l999 before me a Notary MIKE MYERS Public in the state of Iowa personally appeared to me personally known who being by me duly sworn or affirmed did say that that person is Business Of Emmi d said entity that the seal affixed to said instrument is the seal of said entity or no seal has been procured by said Ac nowe gment entity and that said instrument was signed and sealed if applicable on behalf of the said entity by authority of its board of directorspartnersmembers and the said acknowledged the execution of said instrument to be the voluntary act and deed of said entity by it voluntarily executed My commission expires 363 X Notary Public In the following statement quot1 means the Mortgagor I widerstgiigihjatsiild elstead property is in many cases protected from the claims of creditors and exempt from judicial sale and that by Signing thlS contract I voluntarily give up my rights to this protection for this property with respect to claims based upon this contract BY BX SignatureE39EREI39I W COCI IRANE III MANAGER Date SignatureRUSSEIIEJRMCCUIIOUGH MIKE MYERS Date 1993 Bankers Systems Inc St Cloud MN 1800397 2341 Form AGCOMTGIA 621BY page 6 of 6 Mike Myers Manager