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to the holder of a lien under a mortgage or similar instrument to
which this Mortgage is expressly eubject; and the insurance proceeds
or any pa~~~ thereof i~ received by the Mortgagee may be applied by
the Mortgagee, at its option, either in reduotion of the indebted-
ness hereby secured, or to the restoration or repair of the mort-
gaged property damaged. In the event of forclosure of this Mort-
gage, or of any tranafer of title to the mortgaged property in ex--
tinguishment of such indebtedness, all right, title and interest
of the Mortgagor in and to every auch inaurance policy then in force,
subject to the rights and interests of the holder of any such prior
lien, shall pass to the grantee acquiring title to the mortgaged
property together with sua~ policy and appropriate assignment of
such right, title and interest which shall be made by the Mortgagor. ,
, 7. (a) In order more ~illy to protect the security of this
Mortgage, the Mortgagor shall deposit with the Mortgagee together
with, and in addition to, the payment of principal. and interest monthly
on account of the Note secured hereby, until the Note is paid in
full, an amount of money equal to the total amount~of (i) ground
rents, if any, next becoming due, (ii) the premiums next becoming
` due on the policies of fire and all other hazard insurance required
by this Mortgage with reapect to the mortgaged property, (iii) taxes,
assessments, water rates and other governmental charges next becoming
due on the mortgaged property (all the foregoing amounts as estimated •
by the Mortgagee and set forth in a written notice of such estimate
by the Martgagee to the Mortgagor from time to time), less all
amounts that may already have been paid therefor, divided by the
number of calendar months to elapse before one calendar month priQr,
~ to the date when such ground rents, premiums, taxes, assessments,
water rates and other governmental charges, respectively, will
~ become due and payable. If any amount referred to in clauses (i)
€
through (iii) hereof is required to be deposited by the Mortgagor. ~
under a mortgage or similar instrument having priority over the lien
of this Mortgage, the Mortgagor ahall ma.ke the deposits required
by this Pa~agraph 7 only in the event of the termination of such
obligation under the prior mortgage or aimilar instrument. The '
Mortgagor shall give prompt notice in writing to the 2:ortgagee of
the occurrence of the last mentioned event. All such amountg so
deposited with the Mortgagee~shall be held by the Mortgagee, or any
agent designated by it, in trust to be used only for the payment
of suc2~ gro und rents, premiums, taxes, asaessments, water rates .
and other gov~rnmental charges. No interest shall be payable by
the Mortgagee on any sum so deposited.
(b) ~il amounts required to az deposited with the Mortgage~e
montr=y in accordance with Paragraph ?(a) hereoY, and the a.mount of
~o,~c~.~~ P~~~6i~