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ARTICLB 10
Damage Or Destruction
4
SEC'IZON 10.0E In ease of easuelty to the Mortgaged Property resulting E
in damage or destruction, Mortgagor shall promptly glue written notice thereof to Mort- i
gagee. If Mortgagee elects to apply insurance proceeds pursuant to clause (ii) of Section 1
10.02 hereof and regardless of the amount o[ any such damage or destruction, Mortgagor ~
shall at its sole cost and expense, except as otherwise provided in this Article 10, and
whether or not the insurance proceeds, if any, shall be sufficient for the purpose, re-
store, repair, replace, rebuild or alter the same as nearly es possible to its value, con-
dition and character immediately prior to such damage or destruction or with such changes
or alterations as may be made at Mortgagor's election in conformity with and subject
to the conditions of Article 6 hereof. Such restoration, repairs, replacements, rebuild-
ing or alteration shall be commenced promptly and prosecuted with reasonable dillgenee.
If (i) estimates received, and/or made,, by Mortgagee disclose that the cost of restoration
would be in excess of the amount of the insurance proceeds available therefor, or (ii)
during the period of restoration by Mortgagor the amount of the insurance proceeds shall
not be sufficient to complete such restoration, then in either of such events, Mortgagor
shall deposit with Mortgagee the.amount or such other security ss shall be satisfactory
to Mortgagee, as is required to complete such restoration.
SECTION 10.02. Subject to the provisions of Section 10.05 hereof, ell in-
surance money shall be paid to Mortgagee on account of such damage or destruction,
less the actual cost, fees and expenses, if any, incurred in connection with adjustment
of the loss, and shall be applied by Mortgagee at its sale option, either (i) to reduce the
indebtedness secured by this Mortgage or (ii) to the payment of the cost of the aforesaid
restoration, repairs, replacement, rebuilding or alterations, including the cost of temporary
repairs or for the protection of property pending the completion of permanent restore-
. tion, repairs, replacements, rebuilding or alterations (all of which temporary repairs,
protection of property and permanent restoration, repairs, replacement, rebuilding or
alterations are hereinafter coileetively referred to as the "restoration"), and if applied
to the cyst of the restoration shall be paid out from time to time as such restoration
progresses upon the written request of Mortgagor if the work for which payment is re-
quested has been done in a good and workmanlike manner and substantially in accordance
with the plans and specifications therefor, if any, Each request shall be accompanied
k by the following:
(1) A certificate signed by Mortgagor, dated not more than 30 days prior
to such request, setting forth the following:
(A) That the sum then requested either has been paid, or is justly
due to contractors, subcontractors, materi8lmen, engineers, architects
or other persons who have rendered services or furnished materials for
the restoration therein specified or have paid for the same, the names
and addresses of such persons, a brief description of such services and ma-
terials, the several amounts so paid or due to each of said persons in respect
thereof, that no part of such expenditures has been or is being made the
basis, in any previous or then pending request, for the withdrawal of in-
surance money or has been made out of the proceeds of insurance money
received by Mortgagor, and that the sum then requested does not exceed
the value of the services and materials described in the certificate.
(B) That, except for the amount, if any, stated (pursuant to the
foregoing subclause (1)(A)) in such certificate to be due for services or
materials, there is no outstanding indebtedness known to the persons sign- t
~ ins such certificate, after due inquiry, which is then due for~~aboc, wages,
materials, supplies or services in connection with such restoration.
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