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to the holder of a lien under a mortgage or s:imilar instrument to
which this ~Ior~oage is expressly subject; and the insurance proceeds
or any part thereof if received by the Mortgagee may be applied by
the ~tortgagee, at its option, either in reduction of the indebted-
ness hereby secured, or to the restoration or repair of the mort-
gaged property damaged. In the event of forclosure o~ this Mort-
gage, or oi any transfer of title to the mortgaged property in ex-
tinguishment of such indebtedness, all right, title and interest
of the Mortgagor in and to every such insurance policy then in force,
subject t~ 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 such policy and appropriate assignment of
such r~~ht, title and interest which shall be made by the Mortgagor. ,
7. (a) In order more fully 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 oi the Note secured hereby, until the Note is paid in
full, an amount of money equal to the total amount of (i) grAUnd
rents, if ~.::y, next becoming due, (ii) the premiums next becoming
due on the policies of fire and all other hazard insurance required
by this Mortgage with respect 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 estimatea •
by the Mortgagee and set forth in a written notice of such estimate
~ by the Mortgagee to the Mortgagor fr~m 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 prior,
to the date when such ground rents, premiums, taxes, asszssments,
water rates and other governmental charges, respectively, will
become due and payable. If any amount referred to in clauses (i)
throug'r. (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 shall make the deposits required
by this Par3graph 7 only in the event of the termination of such
obligation under the prior mo~tgage or similar instrument. The ~
Mortgaoor shall give prompt notice in writing to the I•:ortgagee of
the ~ccurrence of the last mentior.ed event. Al1 such amounts so
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deposited wit'n the Mortgagee shall be held by the Mortgagez, or any
agent designa~ed by it, in trust to be used only for the ~Qymenz
of such gro und rents, premiums, taxes, assessments, water rates
and ot'ner governmental charges. No interest shall be payable by
the i~lortgagee on any sum so deposited.
(b) x~l a.mounts require.: to ~e deposited w~th the Mortgagee
non~:ly in accordance with Paragraph 7(a) hereof, and the a,~oun~ of
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