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Construction Mortgage Agreement
(Long form - Comprehensive)

1. Description of Parties. THIS MORTGAGE is made [date] between [name], a corporation of [state], with principal office in [city, shire, state] (Mortgagor), and [name], a corporation of [state] (Mortgagee).

2. Description of Mortgage Note. Mortgagor, by Mortgagor's Note bearing even date, is indebted to Mortgagee in the sum of ---------- dollars ($----------), lawful money of Australia, with interest from the date thereof at the rate set forth in the Note, principal and interest payable in accordance with the terms and conditions provided by the Note, the final payment of which, if not sooner paid, is due and payable not later than [date], both principal and interest being payable at the principal office of Mortgagee in [city, state] or at such other place as the holder of the Note may designate in writing.

3. Mortgage and Description of Property. To secure the payment of the described debt as well as all other sums recoverable by Mortgagee under the terms of this Mortgage, according to the conditions of the Note, Mortgagor mortgages to Mortgagee:

[description of mortgaged real estate].

TOGETHER with all buildings and improvements now or hereafter erected or created on the premises;

TOGETHER with all the fixtures appurtenant to the premises and all personal property now or hereafter used or useful in the operation of the premises;

AND TOGETHER with the buildings and improvements, streets, lanes, alleys, passages, ways, waters, watercourses, rights and easements belonging to the premises, and the rents, issues and profits, reversions and remainders of the premises;

4. Assignment of Rents. As further security for payment of the indebtedness and performance of the obligations, covenants, and agreements secured by this Instrument, Mortgagor assigns to Mortgagee and Mortgagee's successors and assigns, all leases of the mortgaged premises already in existence and to be created in the future, together with all rents to become due under existing or future leases. Upon an event of default, Mortgagor confers on Mortgagee the exclusive power, to be used or not in Mortgagee's sole discretion, to act as agent, or to appoint a third person to act as agent for Mortgagor, with power to take possession of and collect all rents, and issues and profits arising from the mortgaged premises and the personal property used in the operation of the premises and apply the rents, and issues and profits at the option of Mortgagee to the payment of the mortgage debt, interest, insurance, taxes, costs of maintenance and operation, repairs and other similar expenses, in such order of priority as Mortgagee may in Mortgagee's sole discretion determine, and to turn any balance remaining over to Mortgagor. The collection of rents, and issues and profits shall not operate as an affirmance of any tenant or lease in the event the title to the property is acquired by Mortgagee or any other purchaser at a foreclosure sale. In exercising any of the powers set out in this Paragraph, Mortgagee may also, upon an event of default, take possession of any personal property contained in the mortgaged premises and useful in their operation and operate and maintain it. The right to enter and take possession of the premises, to manage and operate them, and to collect the rents, and issues and profits, may be exercised concurrently with or independently of any other right or remedy under this Mortgage or afforded by law. Mortgagee shall be liable to account only for such rents, and issues and profits actually received by Mortgagee.

5. Mortgagor's Obligations. Mortgagor covenants with Mortgagee as follows:

a. Furnish Financial Statements. Mortgagor will furnish Mortgagee with a sworn statement of annual income and expense and a balance sheet during the month following the expiration of each of Mortgagor's fiscal years, covering the operation of the mortgaged premises during the preceding financial year and the financial condition of Mortgagor as at the end of such financial year.

b. Maintain Premises. Mortgagor will abstain from and not permit the commission of waste in or about the mortgaged premises. Mortgagor will maintain the premises in good condition and repair and will replace all items of real and personal property in which Mortgagee has a security interest and that may wear out, or be lost, damaged or destroyed.

c. Adequate Insurance. Mortgagor will keep the building and improvements on the mortgaged premises, and the personnal property used in their operation, continually insured in companies approved by Mortgagee, against the hazards, for the amounts, in the forms of insurance, and in the manner that Mortgagee may require for Mortgagee's benefit, as additional security. Mortgagor will deliver to Mortgagee all policies and receipts relating to the insurance, with standard mortgagee clauses attached to policies insuring real property and naming Mortgagee as an insured in policies insuring personal property. The policies and receipts will be held by Mortgagee.

d. Payment of Taxes, Assessments, Etc. Mortgagor will pay when due all taxes, assessments, water and sewer rents, and other charges assessed against the mortgaged premises or upon the interest of Mortgagee in the premises or upon any personal property, without any deduction, defalcation, or abatement. Mortgagor will pay, when due, any other taxes (including corporate taxes), assessments or charges, claims or encumbrances that might become a caveat, prior to the caveat of this Mortgage or that might have priority in distribution of the proceeds of a judicial sale. However, if Mortgagor deposits cash with Mortgagee or a corporate surety bond naming Mortgagee as Obligee in an amount sufficient to pay the tax, assessment, charge, claim, or encumbrance with interest and penalties, Mortgagor may withhold payment or discharge as long as the validity of the tax, assessment, charge, claim, or encumbrance is contested in good faith.

e. Receipts for Payment of Taxes, Assessments, Etc. Mortgagor will produce to Mortgagee, not later than [number] days before the date on which any taxes, assessments, water and sewer rents, and other charges bear interest or penalties, receipts for the taxes, assessments, water and sewer rents, and other charges or, if Mortgagor has made the deposit as provided by the preceding Paragraph, evidence that the validity of any tax, assessment, charge, claim, or encumbrance is being contested in good faith.

f. Taxes on Note or Mortgage. Mortgagor will pay all taxes that may be assessed upon this Mortgage or the Note, or the indebtedness secured by this Mortgage, other than income taxes and taxes measured by income, without regard to any law imposing payment upon Mortgagee. If a court of competent jurisdiction decides that the undertaking by Mortgagor to pay these taxes is legally inoperative, and if Mortgagor nevertheless fails to pay such taxes, the failure shall be a default under this Mortgage.

g. Removal or Alteration of Building. Mortgagor will not remove or demolish any building now or hereafter erected upon the premises, nor alter the design or structural character of any building now or hereafter erected upon the premises so as to diminish the premises value, unless Mortgagee first consents in writing. Mortgagor will comply with all laws, ordinances, regulations, covenants, conditions, and restrictions affecting the premises, and will not permit any violation of them.

h. Insurance Proceeds; Awards. Mortgagee may apply the proceeds of any insurance or any sums received as the result of the taking by eminent domain of any part of the mortgaged premises as follows: If no event of default has occurred, proceeds of less than ---------- dollars ($----------) for a loss shall be paid directly to Mortgagor, and proceeds of ---------- dollars ($----------) or more for a loss shall be paid over to Mortgagor to the extent necessary to reimburse Mortgagor for the cost of restoring the mortgaged premises, or of replacing any personal property in which Mortgagee has a security interest, upon receipt from Mortgagor of vouchers showing the cost of the restoration or replacement, If an event of default has occurred, Mortgagee may apply the proceeds either on account of the principal debt or interest, or for the cost of restoring the mortgaged premises or...

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