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HomeMy WebLinkAbout1142 • payment of the indebtedness hereby secured and Mortgagor hereby agrees that after default hereunder any values avail- able thereunder upon cancellation or termination of any of said policies or renewals, whether in the form of return of . premiums or otherwise, shall be payable to Mortgagee as assignee thereof. If Mortgagee becomes the owner of the Mortgaged Property or any part thereof by foreclosure or otherwise, such policies, including all right, title and interest of Mortgagor thereunder, if any, shall become the absolute property of Mortgagee. 5. Taxes and Other Charges. Mortgagor shall pay when due and payable and before interest or penalties are due thereon, without any deduction (except such discount as may be permitted by law), defalcation or abatement, all taxes, assessments, levies, liabilities, obligations, encumbrances, water and sewer rents and all other charges or claims of every nature and kind which may be imposed, suffered, placed, assessed,_levied or filed at any time against Mortgagor, the Premises, the Mortgaged Property or any part thereof or against the interest of Mortgagee therein, or which by any present or future law may have priority over the indebtedness secured either. in lien or in distribution out of the proceeds of any judicial sale, without regard to any law heretofore or hereafter to be - enacted imposing payment of the whole or of any part upon Mortgagee; and insofar as. any such tax, assessment, levy, liability, obligation or encumbrance is of record, the same shall be promptly satisfied and discharged of record and the original official document (such as, for instance, the tax receipt or the satisfaction paper officially endorsed or certified] si~aii 6e pierced in the-hands of Mortgagee not later than such dates; provided, however; that if, pursuant to the Note, this Mortgage or otherwise, Mortgagor-shall have deposited with Mortgagee before the due date thereof . i sums sufficient to pay any such taxes, assessments, levies, ' water and sewer rents, charges or claims, and Mortgagor is not otherwise in default, they shall be paid by Mortgagee; and provided further that if Mortgagor in good faith and by appropriate legal action shall contest the validity of any _ such lien, or the amount thereof, and shall have established on its books_or by deposit of cash with Mortgagee, as Mortgagee may elect, a reserve for the payment thereof in such amount as Mortgagee may require, then Mortgagor shall not be required to pay the item or to produce the required s receipts, while the reserve is maintained and so long as the contest operates to prevent collection, is maintained and prosecuted with diligence, and is not terminated or dis- continued adversely to Mortgagor. 6. Notice and Grace Periods. Notwithstanding the foregoing provisions of this Mortgage and the Note secured hereby, Mortgagee shall not exercise any right or remedy provided for herein or in the Note or allowed by law because of any default of Mortgagor unless Mortgagor shall have failed, in the event of a monetary default, to pay the outstanding sums for ten (10) calendar days, or in the event of a nonmonetary default, - -6- ~~328 P~E~142