HomeMy WebLinkAbout1708 its option, apply the monies and/or liquidate the securities deposited with Mortgagee,
in payment of, or on account of, such taxes and assessments, or any portion thereof
then unpaid, including the payment of all penalties and interest thereon. if the amount
of the money and/or security so deposited shall be insufficient for the payment in full
of such taxes and assessments, together with all penalties and interest thereon, the
Mortgagor shall forthwith upon demand either (a) deposit with the Mortgagee a sum
which, when added to the funds then on deposit, shall be sufficient to make such
payment in full, or (b) in case the Mortgagee shall have applied funds on deposit on
account of such taxes and assessments, restore said deposit to an amount satisfactory
_ to Mortgagee in its unconfined discretion. Provided Mortgagor is not then in default,
the Mortgagee shall, upon Lhe final disposition of such contest and upon Mortgagor's
delivery to Mortgagee of an official bill for such taxes, apply the money so deposited
in full payment of such taxes and assessments oc that pact thereof then unpaid,
together with all penalties and interest thereon when so requested in writing by the
Mortgagor.
4. Insurance. To provide at its expense an insurance policy with
extended coverage, and coverage without limitation, fire, hazard, casualty, collapse,
soil subsidence, windstorm, vandalism, theft, malicious mischief comprehensive public
liability including bodily injury and property damage and such other risks and perils as
Mortgagee in its discretion may require. The policy or policies of such insurance shall
be in the form in general use from time to time in the locality in which the premises
are situated, for the risk covered thereby, and shall be in an amount equal to the
greater of the Note secured hereby or the full insurable value of the premises, and
shall be issued by companies acceptable to Mortgagee and contain a standard
mortgagee clause showing Mortgagee as a named insured with loss payable to
Mortgagee. Mortgagor shall also maintain workman's compensation insurance for all .
its employees in amounts required by law and employer's liability insurance. Such
policies together with proof of payment of premiums due thereunder for the term of
the Note secured hereby shall be delivered immediately to and held by Mortgagee. In
case of loss and payment by any insurer, the amount of the insurance award shall be
paid to Mortgagee, however, the Mortgagor shall use the amount of the insurance
award to restore the Improvements (provided, however, that the loss does not exceed
fifty percent (50%) of the value of the Improvements constructed to the date of the
loss and the Lender consents thereto, and further, the Permanent Lender as described
in the Loan Agreement consents to extending its commitment to make permanent
loans to the Mortgagor for that ~ period of time required to reconstruct the
Improvements, and the Loan is "in balance" as defined in the Loan Agreement, and the
restoration of the Improvements can be completed prior to the maturity date set forth
in the Note. In the event that the loss exceeds fifty percent (50%) of the value of the
Improvements or the conditions set forth in the preceding sentences are not fulfilled,
then, and in that event at Mortgagee's option, the amount of the insurance award shall
be applied either on the indebtedness secured hereby or in rebuilding or restoring the
~ damaged Improvements. Neither the application nor the release of any such amounts
~ shall cure or waive any default. Such insurance shall at all times be subject to
Mortgagee's approval as to amount, company, form and expiration date. Upon exercise
~ of any power of sale given in this Mortgage or foreclosure hereof, or other acquisition
of the premises or any part thereof by Mortgagee, such policies, shall become the
~ absolute property of Mortgagee. Such policies shall contain an agreement by the
~ insuror to give Mortgagee at least thirty (30) days written notice prior to cancellation
~ thereof or payment to any claim thereunder.
5. Preservation and Restoration of Premises and Com fiance with
Governmental Regulations. To first obtain the written consent of Mortgagee, such
~ consent to be granted or withheld at the sole discretion of Mortgagee before (a) the
removing or demolishing any building now or hereafter erected on the premises,
(b) altering the arrangement, design or structural character thereof, (c) making any
repairs which involve the removal of structural parts or the exposure of the interior of
such building to the elements, (d) cutting or removing or permitting the cutting and
removal of any trees or timber on the premises, (e) demolishing, repairing, improving
or relocating any improvements, (f) dredging, filling, grading, excavating (provided
however, grading is permitted so long as materials removed are redeposited elsewhere
on the premises, nor shall any fixtures or appliances on, in, or about said buildings or
improvements be severed, removed, sold, or mortgaged, without the prior written
consent of Mortgagee, and in the event of the demolition or destruction in whole or in
part of any of the fixtures, chattels, or articles of personal property covered hereby or
by any separate security agreement given in conjunction herewith, the same shall be
~ replaced promptly by similar fixtures, chattels, and articles of personal property to
least equal in quality and condition to those replaced, free from any security interest
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