R93-13 AUTHORIZING ARCHITECHURAL / ENGINEERING AGREEMENT AND AGREEMENT AND MORTGAGE

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� -z- Mortgagor further covenants and agrees as follows: 1. Lease of Pronertv: If the Grant Application and Grant Agreement authorizes Mortgagor to lease the Property, each lease arrangement shall be subject to the prior written approval of EDA. Prior to EDA granting said approval, it must be satisfied inter alia, that said lease arranqement is consistent with the authorized general and special purpose of the grant; that said lease arrangement will provide adequate employment and economic benefits for the area in which the Property is located; that said lease arrangement is consistent with EDA policies concerning, but not limited to, nondiscrimination, nonrelocation and excessive profits and that the proposed Lessee is providing adequate compensation to Mortgagor for said lease. Any Lease Agreement entered into by Mortgagor of the Property shall be subordinate, junior and inferior to this AGREEMENT AND MORTGAGE. 2. Charaes; Liens: Mortgagor shall protect the title and possession of the Property, pay when due all taxes, assessments, and other charges, fines and impositions now existing or hereafter levied or assessed upon the Property and preserve and maintain the priority of the lien hereby created on the Property including any improvements hereafter made a part of the realty. 3. Hazard Insurance: Mortgagor shall insure and keep insured all improvements now or hereafter created upon the Property against loss or damage by fire and windstorm and any other hazard or hazards included within the term "extended coverage". The amount of insurance shall be the full insurable value of said improvements. Any insurance proceeds received by Mortgagor due to loss shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired; Mortgagor shall use said insurance proceeds to compensate Government for its fair share. Government's fair share shall be a percentage of said insurance proceeds equal to its qrant percentage in the total cost of the grant program for which the damaged or destroyed real property was acquired or improved. 4. Preservation and Maintenance of the PropertV: Mortgagor shall keep the Property in qood condition and repair and shall not permit or commit any waste, impairment, or deterioration of the Property. 5. Insaection• EDA may make or cause to be made reasonable entries upon and ir.spect.ion ef Y.he Property. - 6. Condemnation: 1 The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other • taking of the Propert=y, or part thereof, or for any conveyance in lieu of condemnatio�� shall be used by Mortgaqor to compensate ' Government for its `.,ir share. Government's fair share shall be a percentage in th� total cost of the grant program for which the condemned propert� was acquired or improved.