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Common use of Borrower Promises Clause in Contracts

Borrower Promises. The Borrower promises: a. to comply with all terms and conditions of any charge or encumbrance of the Property that ranks ahead of this Mortgage; b. to pay all Indebtedness, to perform all Obligations, and to comply with all terms of this Mortgage and the Agreements; c. to keep all buildings and improvements forming part of the Property in good condition and to repair them as needed or as the Lender reasonably requires and not to alter or tear down any building or part of a building forming part of the Property; d. to enforce and maintain in good standing all warranties and insurance relating to buildings and improvements forming part of the Property; e. to comply with Applicable Laws affecting the condition (such as the environmental condition), repair, use and occupation of the Property; f. to do all things and sign any other document that the Lender reasonably requires to ensure that the Indebtedness and Obligations remain secured by this Mortgage and that the Mortgage has priority over any other security over the Property, except as may otherwise be agreed to by the Lender; g. not to do or fail to do anything that has the effect of reducing the value of the Property or lowering the priority of this Mortgage and any other security in favour of the Lender (the Borrower is to promptly inform the Lender of any fact or event that could adversely affect the value of the Property or the financial condition of the Borrower or that could lower the priority of this Mortgage or other security held by the Lender for the Indebtedness and Obligations); h. to occupy the Property as a single family owner occupied residence and not to rent the Property or any portion of the Property without the express prior written consent of the Lender. If the Borrower has rented the Property to a tenant with the express prior written consent of the Lender, and if the Lender so requests, to keep records of all rents received and of all expenses paid by the Borrower in connection with the Property, and, at least annually, have a statement of revenue and expenses for the Property prepared by a chartered accountant, and to give a copy of the statement to the Lender; i. to insure and keep insured all buildings and improvements on the Property for not less than their full replacement value until this Mortgage is discharged, including, without limitation, (i) risks of loss or damage by fire with extended perils coverage and such additional perils, risks or events against which a prudent owner would insure the Property; (ii) if applicable, risks of loss and damage by explosion of, or caused by, any boiler or similar apparatus, against loss or damage caused by a sprinkler system; and (iii) if applicable, risks of loss from damage to or destruction of the Property resulting in interruption to or loss of revenue, rental income, or business income from the Property; j. to send to the Lender a copy of all insurance policies and renewals of same upon receipt and to ensure that all insurance policies required under this Mortgage are carried with a company approved by the Lender and contain mortgage clauses approved by the Insurance Bureau of Canada confirming that loss proceeds are payable to the Lender, that the Lender has the right to receive and to have a lien on the loss proceeds in accordance with its priority established under this Mortgage (the Borrower hereby assigns to the Lender all amounts payable under any of these policies), and that the insurer will promptly advise the Lender of any cancellation, or proposed cancellation of a policy by the insurer for any reason, (ii) any failure by the insurer to renew a policy for any reason and (iii) any material change in the risk insured by the insurer, if required by the Lender; k. on the happening of any damage, to furnish all necessary proofs to the Lender and do all necessary acts to enable the Lender to obtain payment of the insurance proceeds, with the intention that the Lender, in its discretion, may allow the Borrower to use the insurance proceeds to repair or rebuild the Property or may use such insurance proceeds to reduce the Indebtedness, whether due or not; l. to arrange for payments on account of Indebtedness to be made by pre-authorized withdrawals from an account of the Borrower, it being the Borrower's responsibility to ensure payments are made on the due date and to arrange for any replacement pre-authorized payment plan from a different account before the next due date if the Borrower changes financial institutions; m. to pay any money, which, if not paid, would result in a default under any permitted charge or encumbrance having priority over this Mortgage or which might result in the sale of the Property; n. to pay all utility and fuel charges related to the Property promptly as and when they are due and if such utilities are interrupted or discontinued to take all steps to have them restored immediately; o. to pay all the service fees set forth in the Agreement, including, without limitation, those required due to failure to make payments on their due date or dishonoured pre-authorized payment withdrawals; and p. to pay and cause to be discharged any liens or encumbrances over the Property that is not a prior encumbrance permitted by the Lender under this Mortgage.

Appears in 9 contracts

Samples: Mortgage, Mortgage, Mortgage