APPENDIX A: SERVICE CONNECTION MORTGAGE

   THIS MORTGAGE is made this _____ day of _______, 20____, between __________, herein called “Mortgagor” and the City of Canby, Oregon, herein called “city”.

   City has imposed a connection charge of $______ on Mortgagor for the privilege of connecting to the city’s sewerage system, the following described real property:

   SEE ATTACHED PROPERTY DESCRIPTION, EXHIBIT “A.”

   Mortgagor desires to defer the payment of the connection charge and the city has agreed to such deferral. Mortgagor agrees to pay to the city the service charge of $_______ in not less than ____( ) equal installments of $_______ each on the first days of January and July of each year together with and in addition to each said installment, interest on unpaid principal balances existing at any principal payment date at the rate of ten percent (10%) per annum on each principal payment date. Interest shall be paid in addition to each principal payment.

   To secure the aforesaid sum, the Mortgagor conveys to the city the above-described real property and Mortgagor covenants to and with city that Mortgagor is the owner thereof and that Mortgagor will warrant and defend the same from the claims of all persons.

   Mortgagor covenants and agrees to commit no waste on the premises and to pay all taxes and assessments thereon promptly when due and before the same become delinquent.

   NOW, THEREFORE, if the covenants herein shall be performed as agreed, this conveyance shall be void. But, in case default shall be made in payment of the principal or interest when either principal or interest shall become due or in any covenant herein, then the whole sum shall immediately become due and payable and the city may foreclose this mortgage at any time thereafter.

   In any suit to foreclose this mortgage, or in any suit which the city defends to protect the lien thereof, the Mortgagor agrees, in addition to any sum due on the foregoing obligation at the time such suit is commenced, to pay a sum of money as reasonable attorney’s fees to be set by the court hearing said suit or any appeal therefrom and the costs and disbursements allowed by the Code of Civil Procedure, and further agrees to pay the reasonable costs of searching records and abstracting the same as may be incurred by the city in foreclosing or defending this mortgage.

   In this instrument, the masculine shall be deemed to include the feminine and the singular the plural where the connotations are applicable herein.

   IN WITNESS WHEREOF, the Mortgagor has set his or her hand the day and year first hereinabove written.

__________________________                        ___________________

__________________________                        ___________________
                                    MORTGAGOR

STATE OF OREGON                           )

                                    )ss. Date:________

COUNTY OF CLACKAMAS                        )

   Personally appeared the above named _______________the foregoing instrument to be ________________ and acknowledged voluntary act and deed.

BEFORE ME:

   _____________________________
   Notary Public for _______________
   My Commission Expires: ________