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HomeMy WebLinkAbout2718 . f . 1 t t ; 1. Pa ment of Debt. Mortgagor will pay the Debt at ; the time and in t e manner provided for its payment in the Note ~ and in this Mortgage. ' ~ 2. Warrant of Title. Mortgagor warrants the title to the Premises, t e Improvements and the Equipment. 3. Insurance. Mortgagor will provide at Mortagor's ~ expense: (a) a comprehensive fire and extended coverage insurance - : policy endorsed to include all risk and replacement value , and demolition and increased cost of construction coverage, and covering without limitation, fire, hazard, casualty, collapse, windstorm, flood and sprinkler leakage, vandalism, theft, malicious mischief, and a comprehensive public liability policy ( including bodily injury and property damage) with a combined single limit of at least $1,000,000.00, issued by insurance companies acceptable to the Mortgagee; and ~ (b) prior to completion of the Improvements and the issuance ~ of certificate of occupancy therefor, builder's risk insurance, with extended coverage, non-reporting form, upon the Improvements and the Equipment to 100 percent of the insurable value~ thereof naming Mortgagor as insured ~ with a mortgagee clause acceptable to and naming Mortgagee attached thereto; and from date of completion of the Improvements and issuance of certificate o£ occupancy : therefor, rental and rental value insurance coverage in an i amount at lest adequate to cover twelve (12) inonths' principal and interest installments on the loan, together ~ with 1/12 of the annual taxes and insurance. expense on the Mortgaged Property for a period of at least twelve (12) months. All such policy or policies shall be in the form in general use from time to time in the locality in which ~ the Mortgaged Premises are situated, for the risk covered ~ thereby, and shall be issued by companies acceptable to ~ Mortgagee in form and substance satisfactory to Mortgagee and contain a standard, non-contributory mortgagee clause showing Nlortgagee as a named insured with loss payable to Mortgagee. AI1 such policy or policies of fire and ~ extended coverage and builders risk insurance shall be in ~ an amoun t equal to the greater of the original principal amount-of the Note or the full insurable value of the Mortgaged Premises (provided, however, Mortgagee will accept_a certificate of insurance under the blanket coverage of Mortgagor or Headway Corporation Limited for ~ fire and hazard insurance coverage). Such policies (hereinafter called the "Policies") together with proof of ~ payment of premiums due thereunder for the term of the Note shall be delivered immediately to and held by ~ Mortgagee. Any and all amounts received by Mortgagee f under any of such policies may be applied by Mortgagee on ~ the indebtedness secured hereby in such manner as ~ Mortgagee may in its sole discretion elect or, at the ~ option of Mortgagee, the entire amount so received or any ~ ~ ~ -3- - ~ . ~ ilR ' ~ ~u~3~2 Pa6E2714