City of Mankato
Mortgage Loan Agreement
THIS INDENTURE, made this 6th day of October, 1999, between W. Xxxx
Xxxxxxx, d/b/a Xxxxxxx Electronics Inc., (hereinafter referred to as Mortgagor),
and the City of Mankato, Mortgagee.
WITNESSETH, that the Mortgagor, in consideration of the sum of ONE
HUNDRED FIFTY THOUSAND and 0/100 DOLLARS ($150,000.00), the Mortgagor in hand
paid by the Mortgagee, the receipt whereof is hereby acknowledged, does hereby
convey unto the Mortgagee, Forever, all of the land located in the County of
Blue Earth, and State of Minnesota, described as follows:
Property Location:
0000 Xxxxx Xxxxx
Xxxxxxx, XX
Legal Description:
Eastwood Industrial Centre
Lot 4 & N201.9'
together with all hereditaments and appurtenances belonging thereto (the
property).
TO HAVE AND TO HOLD THE SAME, to the Mortgagee forever. The Mortgagor
covenants with Mortgagee as follows: That Mortgagor is lawfully seized of the
Property and has good right to convey the same; that the Property is free from
all encumbrances except as follows:
1. First mortgages secured by commercial lenders in financing this
project.
PROVIDED, NEVERTHELESS, That if the Mortgagor shall pay to the
Mortgagee the sum of ONE HUNDRED AND FIFTY THOUSAND and 0/100 ($150,000.00)
DOLLARS, according to the terms of the promissory note of even date herewith
(the Note), the final payment being due and payable November 1, 2009, with
interest at the rate of 6.0% percent per annum, and shall repay to the Mortgagee
at the times and with interest as specified, all sums advanced in protecting the
lien of this Mortgage, in payment of taxes of the Property, insurance premiums
covering buildings thereon, principal or interest on any prior liens, expenses
and attorney's fees herein provided for and sums advanced for any other purpose
authorized herein, and shall keep and perform all the covenants and agreements
herein contained, then this Mortgage shall be null and void, and shall be
released at the Mortgagor's expense.
AND THE MORTGAGOR covenants with the Mortgagee as follows:
1. To pay the principal sum of money and interest as specified in
the Note;
2. To pay all taxes and assessments now due or that may
hereinafter become liens against the Property before penalty
attaches thereto;
3. To keep all buildings, improvements and fixtures now or later
located on or a part of the Property insured against loss by
fire, extended coverage perils, vandalism, malicious mischief
and, if applicable, steam boiler explosion, for at least the
amount of full and insurable value at all times while any
amount remains unpaid under this Mortgage. If any of the
buildings, improvements or fixtures are located in a federally
designated flood zone, and if flood insurance is available for
that area, Mortgagor shall procure and maintain flood
insurance in amounts reasonably satisfactory to the Mortgagee.
Each insurance policy shall contain a loss payable clause in
favor of the Mortgagee affording all rights and privileges
customarily provided under the so-called standard mortgage
clause. In the event of damage to the Property by fire or
other casualty, the Mortgagor shall promptly give notice of
such damage to the Mortgagee and the insurance company. The
insurance shall be issued by an insurance company or companies
licensed to do business in the State of Minnesota and
acceptable to the Mortgagee. The insurance policies shall
provide for not less than ten days written notice to the
Mortgagee before cancellation, non-renewal, termination, or
change in coverage, and the Mortgagor shall deliver to the
Mortgagee a duplicate original or certificate of such
insurance policies;
4. To pay, when due, both principal and interest of all prior
liens or encumbrances;
5. To commit or permit no waste on the Property and to keep it in
good repair;
6. To complete forthwith any improvements which may hereafter be
under course of construction on the Property; and
7. To pay any other expenses and attorney's fees incurred by the
Mortgagee by reason of litigation with any third party for the
protection of the lien of this Mortgage.
In case of failure to pay said taxes and assessments, prior liens or
encumbrances, expenses and attorney's fees as above specified, or to insure said
buildings, improvements, and fixtures and deliver the policies as aforesaid, the
Mortgagee may pay such taxes, assessments, prior liens, expenses and attorney's
fees and interest thereon, or obtain such insurance, and the sums so paid shall
bear interest from the date of such payment at the same rate set forth in the
Note, and shall be impressed as an additional lien upon the Property and be
immediately due and payable from the Mortgagor to the Mortgagee and this
Mortgage shall from date thereof secure the repayment of such advances with
interest.
In case of default in any of the foregoing covenants, the Mortgagor
confers upon the Mortgagee the option of declaring the unpaid balance of the
Note and the interest accrued thereon, together with all sums advanced
hereunder, immediately due and payable without notice, and hereby authorizes and
empowers the Mortgagee to foreclose this Mortgage by judicial proceedings or to
sell the Property at public auction and convey the same to the purchaser in fee
simple in accordance with the statute, and out of the moneys arising from such
sale to retain all sums secured hereby, with interest and all legal costs and
charges of such foreclosure and the maximum attorney's fee permitted by law,
which costs, charges and fees the Mortgagor herein agrees to Pay.
The Mortgagor and the Mortgagee further covenant and agree as follows:
1. Mortgagor shall be furnished a conformed copy of the Note and
of this Mortgage at the time of execution or after recordation
hereof.
2. Upon default of any covenant or agreement by Mortgagor under
the terms of the Note or this Mortgage, Mortgagee prior to
foreclosure shall mail notice to Mortgagor as provided herein
specifying: (a) the nature of the default by the Mortgagor;
(b) the action required to cure such default; (c) a date, not
less than thirty (30) days from the date the notice is mailed
to Mortgagor by which such default must be cured; and (d) that
failure to cure such default on or before the date specified
in the notice may result in acceleration of the sums secured
by this Mortgage and sale of the Property. The notice shall
further inform Mortgagor of the right to reinstate after
acceleration and the right to bring a court action to assert
the non-existence of a default or any other defense of the
Mortgagor to acceleration and sale.
3. In addition to any notice required under applicable law to be
given in another manner, (a) any notice to the Mortgagor
provided for in this Mortgage shall be given by mailing such
notice by certified mail addressed to the Mortgagor at the
Property address or at such other address as the Mortgagor may
designate by notice in writing to the Mortgagee as provided
herein, and (b) any notice to the Mortgagee shall be given by
certified mail, return receipt requested, to Mortgagee at the
following address: City of Mankato, 00 Xxxxx Xxxxxx Xxxxx,
Xxxxxxx, XX 00000 or to such other address as Mortgagee may
designate by notice in writing to the Mortgagor as provided
herein. Any notice provided for in this Mortgage shall be
deemed to have been given to Mortgagor or Mortgagee when given
in the manner designated herein.
The terms of this Mortgage shall run with the Property and bind the parties
hereto and their successors in interest.
IN TESTIMONY WHEREOF, the Mortgagor has hereunto set their hand the day and year
first above written.
Mortgagor(s)
/s/ X. X. Xxxxxxx 10-5-99
Date
------------------------------ ----------------------
Date
STATE OF Minnesota )
)ss.
COUNTY OF Blue Earth )
The foregoing instrument was acknowledged before me this 5th day of
October, 1999, by W. Xxxx Xxxxxxx.
/s/ Xxxx Xxxxxx
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
STATE OF Minnesota )
)ss.
COUNTY OF Blue Earth )
The foregoing instrument was acknowledged before me this ___ day of
_________, 1998, by
-------------------------------.
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
This document was drafted by:
City of Mankato Legal Department
00 Xxxxx Xxxxxx Xxxxx
Xxxxxxx, XX 00000
