SCHEDULE TO CHARGE/MORTGAGE OF LAND PERSONAL LOAN PLAN/COMMERCIAL LOAN PLAN COLLATERAL CHARGE CONDOMINIUM UNIT LAND REGISTRATION REFORM ACT, 1984 FOR USE WITH STANDARD CHARGE TERMS NO. 882 This Schedule forms part of a charge made pursuant to the Land Registration Reform Act, 1984 and regulations thereunder (the "Act") (hereinafter the charge and Schedule(s) thereto are collectively called "the charge") made between the Chargor(s), the party or parties, if any, identified in the charge as the Spouse(s) of the Chargor(s), the party or parties, if any, identified in the charge as Guarantor(s), and Bank of Montreal, being the Chargee. The provisions of the charge referred to on page 1 of the charge as being contained in a Schedule to the charge are as follows: A. DEFINITIONS In this Schedule where the following terms appear: (i) "Common Expenses" means the expense of the performance of the objects and duties of the Condominium Corporation and any expenses identified to be common expenses in either the Condominium Act or in the Declaration. (ii) "Condominium Act" means the Condominium Act, R.S.O., 1980, Chapter 84, as amended and supplemented from time to time. (iii) "Condominium Corporation" means the Condominium Corporation created by the registration of the Declaration and the description relating thereto. (iv) "Declaration" means the Declaration which, together with the description, was registered under the Condominium Act to subject to the Condominium Act the lands comprised in the Condominium Corporation of which the charged land constitutes a part. (v) "Indebtedness Interest Rate" means the rate or rates of interest applicable to the Indebtedness, as those terms are defined in Standard Charge Terms Number 882. (vi) "unit" means the condominium unit or units and its or their appurtenant common interest which comprise part of the charged land. B. INSURANCE The covenants of the Chargor set forth in paragraph 5(e) of Standard Charge Terms Number 882 are hereby varied to read as follows: The Chargor covenants on behalf of the Chargor and the Chargor's successors and assigns that: (i) The Condominium Corporation has obtained and is maintaining insurance on the buildings and improvements forming part of the condominium property, excluding improvements and betterments made or acquired by unit owners, against major perils as defined in the Condominium Act, to the replacement cost of such property, and liability, boiler, machinery and pressure vessel, motor vehicle and other insurance as it may be required to obtain and maintain by the Condominium Act, the Declaration or the Condominium Corporation by-laws; all such insurance being hereinafter called the "condominium insurance". (ii) The Chargor has obtained and will maintain insurance on improvements and betterments to the unit made or acquired by him if any, and in the event of termination of the condominium will to the extent the former condominium property is insurable, obtain insurance on the Chargor's interest therein for the full insurable value thereof or if the Chargee so requires, the replacement cost thereof, in lawful money of Canada, against loss or damage by fire, lightning and tempest and such other risks as the Chargee may require, including risks and perils covered by an all risks policy. In the case of a unit used for commercial purposes, this covenant shall in addition include boiler, plate glass, rental and public liability insurance in amounts and on terms satisfactory to the Chargee. All such insurance is hereinafter called the "owner's insurance". (iii) As reasonably required by the Chargee, the Chargor shall transmit to the Chargee evidence satisfactory to the Chargee that the condominium insurance is in existence and in good standing. If such evidence is not supplied or if the Condominium Corporation has not insured as so required, the Chargee may, but shall not be obliged to, itself obtain insurance against some or all perils which the Condominium Corporation is required to insure against in such amount as the Chargee deems necessary to protect its interest in the charged land and the cost of such insurance so obtained by the Chargee shall be payable forthwith by the Chargor to the Chargee on demand and shall be a charge on the charged land and shall bear interest at the Indebtedness Interest Rate. And the Chargor shall forthwith on the happening of any loss or damage furnish at his own expense all necessary proofs and do all necessary acts to enable the Condominium Corporation or the insurance trustee (if any)to obtain payment of the proceeds of the condominium insurance; and any moneys received or receivable by the Chargor are hereby assigned to the Chargee on the following terms: namely that they shall be applied in rebuilding or repairing the charged land or, in the event that the charged land is not to be rebuilt or repaired or such moneys are not required for such purpose, or if the Condominium Act ceases to apply thereto, the same shall be retained by the Chargee as additional or substituted security for the Indebtedness. (iv) If any owner's insurance is required to be maintained the Chargor shall forthwith assign, transfer, and deliver over unto the Chargee a certified copy of each policy of insurance and receipts for premiums evidencing such insurance; and at least fifteen (15) days prior to the expiry of a policy of owner's insurance or at least five (5) days prior to the date fixed for cancellation of a policy of owner's insurance, should notice of cancellation be given, the Chargor shall deliver to the Chargee evidence of renewal or replacement therefor. Every policy of owner's insurance shall contain a standard mortgage clause approved by the Insurance Bureau of Canada and shall be effected in such terms and with such insurer(s) as may be approved by the Chargee. The loss under each policy shall be made payable to the Chargee with preference in its favour over any claim of any other person or persons, firm, company, commission or government. Each policy may be retained by the Chargee at its option during the currency of the Indebtedness secured by the charge. Should an insurer at any time cease to have the approval of the Chargee, the Chargor shall effect such new insurance as the Chargee may desire. In the event of failure on the part of the Chargor to fulfill any obligation undertaken under this provision, the Chargee shall be entitled but shall not be obliged, to effect such insurance as it deems proper and the Chargor shall promptly repay to the Chargee on demand all premiums paid by the Chargee, which until repayment shall be a charge on the charged land and shall bear interest at the Indebtedness Interest Rate. In case of loss or damage, the Chargor shall immediately notify the Chargee and furnish all necessary proofs and do all necessary acts to enable the Chargee to obtain payment on any insurance moneys. Production of this charge including this Schedule shall be sufficient authority for any insurer concerned (and such insurer is hereby so directed) to pay any such loss to the Chargee. The Chargee shall have the right to the extent permitted by law to apply the funds delivered from owner's insurance wholly or in part in and to any one or more of the following: - in reduction of the Indebtedness, notwithstanding that no amount at such time may be due and payable; - in meeting costs of repairs or reconstruction; and - in payment to subsequent encumbrancers entitled thereto, the Chargor or assigns thereof as their interests may appear. No damage to property insured by owner's insurance may be repaired nor any reconstruction effected without the prior written approval of the Chargee. C. ADDITIONAL PROVISIONS (i) The Chargor shall at all times and from time to time observe and perform all duties and obligations imposed on him by the Condominium Act, the Declaration, the by-laws and the rules of the condominium in effect from time to time. The Chargor agrees to transmit to the Chargee forthwith upon the demand of the Chargee, satisfactory proof that all Common Expenses assessed against the unit have been paid as assessed. (ii) Without limiting the generality of the preceding provision, the Chargor shall pay promptly when due any contributions to Common Expenses required of him as an owner of the charged land, including any amounts added to Common Expenses or otherwise payable by him to the Condominium Corporation and, in the event of his default in doing so, the Chargee shall be entitled but shall not be obliged to pay the same whether or not any payment in default has priority over the charge or any part of the moneys secured thereby, and the amount thereof shall be without demand, payable forthwith with interest at the Indebtedness Interest Rate and shall be secured by the charge on the charged land. (iii) The Chargee is hereby irrevocably authorized and empowered to exercise the right of the Chargor as an owner of the charged land to vote or to consent in all matters relating to the affairs of the Condominium Corporation or arising under the Condominium Act, the Declaration or the by-laws of the condominium provided that, (x) in any case where the Chargee is entitled under the Condominium Act to receive and does receive notice of a meeting of owners, the Chargee shall notify the Condominium Corporation and the Chargor of its intention to exercise the right of the owner to vote or to consent at such meeting at least two (2) days before the date specified in the notice for the meeting, failing which the Chargor may exercise such right to vote or consent at that meeting; (xx) the Chargee shall not by virtue of the assignment to the Chargee of the right to vote or consent be under any obligation to vote or consent or to protect the interests of the Chargor, and the Chargee shall not be responsible for any exercise or failure to exercise the right to vote or consent; and (xxx) nothing herein contained, including the exercise of the right to vote or consent, shall constitute the Chargee a mortgagee in possession. 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