HomeMy WebLinkAbout2532 MTG-1-A-4/23/73
ties and contingencies as Mortgagee may require, and shall
pay promptly, when due, any premi~ums on such insurance policies
and on any renewals thereof. The form of such policies and the
companies issuing them shall be acceptable to Mortgagee. All
such policies and renewals thereof shall be held by Mortqagee
and shall contain a non-contributory mortgagee endorsement
making losses payable to Mortgagee. The coverage under such
policies shall be limited to the improvements now or hereafter
located on the Mortgaqed Property. At least fifteen (15) days
prior to the expiration date of all such policies, renewals _
thereof satisfactory to Mortgagee shall be delivered to Mortgagee.
Mortgagor shall deliver to Mortgaqee receipts evidencing the
payment of all premiums on such insurance policies and renewals.
Delivery of the insurance policies and renewals thereof shall
constitute an assignment to Mortgagee, as further security,
of all unearned premiums. In the event of loss, Mortgagor
will give immediate written notice to Mortgagee and Mortgagee
may make proof of loss if not made promptly by Mortgagor. In
the event of the foreclosure of this Mortgage or any other
transfer of title to the Mortgaged Property in extinguishment
of the indebtedness and other sums secured hereby, all right,
title and interest of Mortgagor in and to all insurance policies
and renewals thereof then in force shall pass to the purchaser
or grantee.
(b) Mortgagor hereby assigns to Mortgagee all proceeds
from any insurance policies, and Mortgagee is hereby authorized
and empowered at its option, to adjust or compromise any loss
under any insurance policies on the Mortgaged Property, and
to collect and receive the proceeds from any such policy or
policies. Each insurance company is hereby authorized and
directed to make payment for all such losses directly to Mortgagee
alone, and not to Mortgagor and Mortgagee jointly. After deducting
from such insurance proceeds any expenses incurred by Mortgagee .
in the collection or handling of such funds, Mortgagee may
apply the net proceeds, at its option, either toward restoring ;
the Improvements or as a credit on any portion of the indehtedness `
; and other sums secured hereby, whether then matured or to mature
in the future, or at the option of Mortgagee such sums either ;
j wholly or in part may be paid over to Mortgagor to be used ;
to repair such improvements or to build new improvements in :
~ their place or for any other purpose or object satisfactory ~
i to Mortgagee, without affecting the lien of this Mortgage for '
the full amount secured hereby before such payment took place.
Mortgagee shall not be responsible for any failure to collect
- any insurance proceeds due under the terms of any policy regard-
less of the cause of such failure. ~
(c) Mortgagor shall at its sole expense obtain for,
deliver to and maintain for the benefit of Mortgagee, during the
life of this Mortgage, liability insurance policies relating to
the Mortgaged Property, in such amounts, with such companies
and in such form as may be required by Mortgagee. Mortgagee may
require such policies to contain an endorsement, in form satis-
factory to Mortgagee, naming Mortgagee as an additional insured
~ thereunder. Mortgagor shall pay promptly, when due, any premiums -
on such insurance policies and renewals thereof. ?
~ (d) Mortgagee may, at its option, require Mortgagor ~
to deposit with Mortgagee on the first day of each month, in
~ addition to making payments of regular installments of principal
k and interest until the Note is full
~ , y paid, an amount equal
~ to one-twelfth (1/12) of the yearly premiums for all insurance.
~ Such deposits shall not be, nor be deemed to be, trust funds,
j but may be commingled with the general funds of Mortgagee,
~ and no interest shall be payable in respect thereof. Upon
~ demand by Mortgagee, Mortgagor shall deliver to Mortgagee such
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