Legal Mortgage Agreement

LEGAL MORTGAGE AGREEMENT

This Legal Mortgage Agreement (the "Mortgage") is made as of Date: , by and between Lender Name: , Entity Type: Individual Corporation LLC with principal address: (hereinafter "Lender"), and Borrower Name: , Entity Type: Individual Corporation LLC with principal address: (hereinafter "Borrower").

RECITALS

WHEREAS, Borrower has executed a promissory note in favor of Lender in the principal amount of $ (the "Note"), dated , evidencing Borrower's indebtedness and obligation to repay the principal and interest thereon in accordance with the terms of the Note.

WHEREAS, to secure the payment and performance of the Note and the obligations described therein, Borrower desires to grant to Lender, and Lender desires to accept, a mortgage on real property more particularly described below.

WHEREAS, the parties intend that this Mortgage create a continuing first priority lien on the Mortgaged Property as provided herein and by applicable law.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Mortgage, the following terms shall have the meanings set forth below: "Note" means the promissory note described in the Recitals; "Mortgaged Property" or "Property" means the real property and Improvements described in Section 2; "Obligations" means all principal, interest, fees, costs, expenses, and other sums payable under the Note, this Mortgage, or related loan documents.

2. GRANTING CLAUSE; DESCRIPTION OF PROPERTY

Borrower hereby grants to Lender, its successors and assigns, a mortgage and security interest in and to the real property located at Address: , and more particularly described as:

The Mortgaged Property includes all buildings, fixtures, appurtenances, rights, easements, and rights of access now or hereafter attached to or used in connection with the real property described above.

3. SECURED OBLIGATIONS

This Mortgage secures the prompt payment and performance of the Obligation, including without limitation payment of the Note, fees, costs of collection, late charges, and all other sums payable by Borrower to Lender under the Note, this Mortgage, or any other loan document executed in connection herewith.

4. INTEREST, PAYMENTS, AND APPLICATION

Interest shall accrue and be payable as provided in the Note. Payments received by Lender shall be applied in the order set forth in the Note and applicable law. Borrower expressly agrees that any partial payment received after acceleration shall be applied first to costs and expenses of collection, then to accrued interest, and then to principal, unless otherwise required by law or Lender's written agreement.

5. COVENANTS OF BORROWER

Borrower covenants and agrees to: (a) pay when due all amounts secured by this Mortgage; (b) keep the Property insured against loss or damage in such amounts and with such insurers as Lender may require; (c) pay all real estate taxes, assessments and other governmental charges on the Property; and (d) maintain the Property in reasonable condition and repair, subject to ordinary wear and tear.

6. INSURANCE; CONDEMNATION

Borrower shall maintain insurance covering the Property against loss or damage in amounts and forms satisfactory to Lender. In the event of damage or condemnation, Lender shall have the right to apply insurance or condemnation proceeds to repair or restore the Property or to the outstanding Obligations, at Lender's election.

7. DEFAULT; REMEDIES

A default occurs if Borrower fails to perform any covenant or obligation under the Note or this Mortgage or if any representation or warranty proves untrue. Upon default, Lender may declare the entire indebtedness immediately due and payable, pursue foreclosure of the Mortgaged Property, obtain possession and rents, or exercise any other right or remedy available at law or equity. Borrower agrees to pay Lender's reasonable costs and attorneys' fees incurred in enforcing this Mortgage to the extent permitted by applicable law.

8. ACCELERATION

Upon the occurrence of an Event of Default, Lender may accelerate the maturity of the Note and declare all sums secured by this Mortgage immediately due and payable. Acceleration shall be in addition to, and not in lieu of, any other remedy available to Lender.

9. ASSIGNMENT

Lender may assign or transfer its interest in the Note and this Mortgage. Borrower shall execute such documents reasonably required to effectuate any assignment. Any assignee shall have the same rights as Lender hereunder.

10. NOTICES

All notices, demands, and communications under this Mortgage shall be in writing and shall be delivered personally or mailed by certified mail, return receipt requested, or sent by overnight courier, to the addresses below or to such other address as either party designates by notice to the other.

11. RECORDING AND SUPPLEMENTAL DOCUMENTS

Borrower shall execute and deliver such further assurances, affidavits, and other documents as Lender may reasonably require for the purpose of protecting, perfecting, or enforcing Lender's security interest in the Mortgaged Property or complying with recording requirements in the recording jurisdiction:

12. APPLICATION OF PAYMENTS

Payments made under the Note and this Mortgage shall be applied in the order and manner prescribed in the Note. Lender may, at its option, apply proceeds from foreclosure or other enforcement to costs of sale, expenses, attorneys' fees, taxes, insurance, accrued interest, and principal in such order as Lender determines consistent with applicable law.

13. GOVERNING LAW

This Mortgage shall be governed by and construed in accordance with the laws of the state where the Mortgaged Property is located, without regard to its conflicts of law principles. The governing state is:

14. ENTIRE AGREEMENT; SEVERABILITY

This Mortgage, together with the Note and any other loan documents executed in connection herewith, constitutes the entire agreement of the parties with respect to the subject matter hereof. If any provision of this Mortgage is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15. AMENDMENTS; WAIVER; COUNTERPARTS

No amendment or waiver of any provision of this Mortgage shall be effective unless in writing signed by the party against whom enforcement is sought. Failure or delay by Lender to exercise any right shall not constitute a waiver. This Mortgage may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

16. MISCELLANEOUS

Borrower authorizes Lender to file or record this Mortgage and acknowledges that Lender may require documentary evidence of Borrower's identity, authority, and capacity prior to recording. Borrower represents and warrants that Borrower has good and marketable title to the Mortgaged Property, free and clear of all encumbrances except as disclosed to Lender in writing and accepted by Lender.

17. BORROWER REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants that Borrower has full power and authority to execute and deliver this Mortgage and to perform the obligations herein; that no consent of any third party is required to grant this security interest except as disclosed; and that execution and delivery of this Mortgage will not violate any agreement to which Borrower is a party.

18. TAXES AND EXPENSES

Borrower shall pay all taxes, assessments, and other governmental charges levied against the Mortgaged Property before they become delinquent. If Borrower fails to pay, Lender may pay such sums and add the amounts so paid to the Obligations secured by this Mortgage, with interest at the rate provided in the Note.

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