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In This Volume

  • 5 (1) The borrower promises
  • (a) to pay all taxes when they are due and to send to the lender at the place of payment, or at any other place the lender requires, all notices of taxes which the borrower receives,
  • (b) if the lender requires the borrower to do so, to pay to the lender
    • (i) on each payment date the amount of money estimated by the lender to be sufficient to permit the lender to pay the taxes when they are due, and
    • (ii) any money in addition to the money already paid towards taxes so that the lender will be able to pay the taxes in full,
  • (c) to apply for all government grants, assistance and rebates in respect of taxes,
  • (d) to comply with all terms and conditions of any charge or encumbrance that ranks ahead of this mortgage,
  • (e) to keep all buildings and improvements which form part of the land in good condition and to repair them as the lender reasonably requires,
  • (f) to sign any other document that the lender reasonably requires to ensure that payment of the mortgage money is secured by this mortgage or by any other document the borrower has agreed to give as security,
  • (g) not to do anything that has the effect of reducing the value of the land,
  • (h) not to tear down any building or part of a building which forms part of the land,
  • (i) not to make any alteration or improvement to any building which forms part of the land without the written consent of the lender,
  • (j) if the borrower has rented the land to a tenant, to keep, if required by the lender, records of all rents received and of all expenses paid by the borrower in connection with the land and, at least annually, have a statement of revenue and expenses for the land prepared by a professional accountant if the lender requires and to give a copy of the statement to the lender if the lender requires the borrower to do so,
  • (k) to insure and keep insured against the risk of fire and other risks and losses that the lender asks the borrower to insure against, with an insurance company licensed to do business in British Columbia, all buildings and improvements on the land to their full insurable value on a replacement cost basis and to pay all insurance premiums when due,
  • (l) to send a copy of each insurance policy and renewal certificate to the lender at the place of payment,
  • (m) to pay all of the lender’s costs, including legal fees on a solicitor and client basis, to
    • (i) prepare and register this mortgage, including all necessary steps to advance and secure the mortgage money and to report to the lender,
    • (ii) collect the mortgage money,
    • (iii) enforce the terms of this mortgage, including efforts to compel the borrower to perform the borrower’s promises and agreements,
    • (iv) do anything which the borrower has promised to do but has not done, and
    • (v) prepare and give the borrower a discharge of this mortgage when the borrower has paid all money due under this mortgage and the borrower wants it to be discharged,
  • (n) if the lender requires the borrower to do so, to
    • (i) give the lender in each year post-dated cheques for all loan payments due for that year and for taxes, and
    • (ii) arrange for all loan payments to be made by pre-authorized chequing,
  • (o) to pay any money which, if not paid, would result in a default under any charge or encumbrance having priority over this mortgage or which might result in the sale of the land if not paid, and
  • (p) to pay and cause to be discharged any charges or encumbrances described in subsection (2)(b) which are not prior encumbrances permitted by the lender under this mortgage.
  • (2) The borrower declares to the lender that
  • (a) the borrower owns the land and has the right to mortgage the land to the lender,
  • (b) the borrower’s title to the land is subject only to
    • (i) those charges and encumbrances that are registered in the land title office at the time the borrower signed the mortgage form, and
    • (ii) any unregistered charges and encumbrances that the lender has agreed to in writing, and
  • (c) subject to paragraph (b), the borrower
    • (i) has not given any other charge or encumbrance against the land, and
    • (ii) has no knowledge of any other claim against the land.
  • (3) The insurance policy or policies required by subsection (1)(k) shall contain a mortgage clause approved by the lender that states that payment of any loss shall be made to the lender at the place of payment or any other place the lender requires and, if this mortgage is not a first mortgage, the amount of any payment made by the insurance company shall be paid to the borrower’s lenders in the order of their priorities.
  • (4) The borrower gives up any statutory right to require the insurance proceeds to be applied in any particular manner.