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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. '
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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
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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
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~ ~u~3~2 Pa6E2714