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the option of the Mortgagee, effect such insurance from year
to dear and pay the .premiums so paid, with interest at the
maximum rate of interest permitted by law from the date of
such payment, on demand, and the same shall-be secured by
this Mortgage; that if the Mortgagee by reason of such
insurance receives any money for loss or damage, such amount !
may, at the option of the Mortgagee, be retained and applied i
by the Mortgagee toward the payment of the indebtedness, or
be paid over wholly, or in part to_the Mortgagor-for the
repair of said buildings or for the erection of new buildings
in their place, or for any other purpose. or object satis-
factory to the Mortgagee, but the Mortgagee shall not be
obligated to see. to the proper application of_any amount
paid over to the Mortgagor; (b) that not less than ten (10) ,
days prior to .the expiration dates of each policy required
of the Mortgagor pursuant to this Paragraph the Mortgagor
will deliver to the Mortgagee a renewal policy or policies
marked "premium paid" or accompanied by other evidence of
payment satisfactory to the Mortgagee; (c) that in the event
of a foreclosure of this Mortgage the purchaser of the
Property shall succeed to all -the rights of the Mortgagor,
including anx right to unearned premiums, in and to all -
policies of insurance assigned and delivered to the Mortgagee
pursuant to the provisions of this paragraph; and (d) in
addition to the foregoing, Mortgagor shall obtain and carry,
for the benefit of itself and Mortgagee, on each Mortgaged -
Property, general- public liability insurance in which both
the Mortgagor and Mortgagee are.named as insureds with s
initial limits of not less than One Million Dollars ($1,000,000)
nor more than Five Million Dollars ($5,000,000) as to personal
-injury or death, and One Hundred Thousand Dollars ($100,000)
with respect to property damage or such greater or different
limits-Mortgagee may reasonably require with such companies 1
and on such terms and in such form for such periods. as
Mortgagee shall from time to time approve.- Satisfactory
evidence of the payment of premiums for_ this policy, satis-
factory to Mortgagee, shall be timely deposited with Mort--
gagee and each such policy shall be non-cancellable without
at least fifteen (15) days' advance written notice to Mort-
gagee and Mortgagee shall receive the replacement or renewal
policy from the Mortgagor at least ten (10) days prior to
the expiration of any expiring policy. Notwithstanding
anything contained herein to the contrary, it is agreed that
in the event of a partial destruction of the premises to an
extent not exceeding $150,000 in the aggregate, Mortgagor
shall promptly repair or cause the repair of said damage,
and so long as (i) Mortgagor. is not in default under this
Mortgage and the Notes secured hereby; First Lien Mortgagee
agrees to allow Mortgagor to use the portion of the insurance
proceeds received by it for repair and rebuilding; and (iii) -
that the cost of repair of said damage or partial destruction
does not exceed the sum of $150,000.00, then each month upon
~ completion of a portion of said repairs in a good and workman- _
like manner in accordance with drawings and specifications
approved by Mortgagee and the furnishing to Mortgagee of
satisfactory evidence that all bills for said repairs to
date have.-beenpaid and that no mechanic's or materialmen's
lien claims have been perfected against the Property or said
improvements in connection therewith, said proceeds shall be
applied to the reimbursement of the cost thereof, less the z
reasonable cost, if any, to the Mortgagee in the recovery of
said proceeds. The balance of said proceeds, if any, or all
if the foregoing conditions are not met, may be applied by
the Mortgagee, at its option, to .the discharge of the prin-
cipal indebtedness secured hereby, whether matured or to
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