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loss payable to the Mortgagee under a standard mortgage
endorsement of the character above described. Mortgagors or
Developer shall immediately notify the Mortgagee whenever
any such separate insurance is taken out and shall promptly
deliver to the Mortgagee the policy or policies of such
insurance.
3.09. Certificate of Amount- Due. Developer
shall, within three ( days upon request in person or
within five (5) days upon request by mail, furnish to
Mortgagee a written statement duly acknowledged of the
amount due whether for principal or interest under the
Second Replacement Note and whether any offsets or defenses
exist against the indebtedness evidenced thereby.
3.10. Condemnation. Developer, immediately upon
obtaining knowledge of the institution of any proceedings
for the condemnation of the Mortgaged Property or any
portion thereof, will notify the Mortgagee of the pendency
of any such proceedings. The Mortgagee may participate in
any such proceedings at the cost and expense of Mortgagors
and Developer and the Mortgagors and Developer from time to
time will deliver to the Mortgagee all instruments requested -
by it to permit such participation. In the event of such
condemnation proceedings, the award or compensation payable.
is hereby assigned to and shall be paid to~the Mortgagee,
subject to the rights of any Construction Lender. The
Mortgagee shall be under no obligation to question. the
amount of any such award~or compensation and may accept the
same in the amount in which the same shall be paid. The
! proceeds of any award or compensation so received shall,
subject to the rights of any Construction Lender, be paid
over to the Mortgagee to be applied, at the option of the
Mortgagee, to the prepayment of the Second Replacement Note
and at the rate of interest provided therein regardless of ~
the rate of interest payable on the award by the condemning
authority, or to the reimbursement to-Developer for expenses
incurred by it in the restoration of the Improvements. ~
3.11. Advances by Mortgagee. If Mortgagors or-
Developer shall fail to perform any of the covenants con-
tained in the Mortgage, the Mortgagee may make advances to
perform the same in their behalf, and all sums so advanced
shall be a lien upon the Mortgaged Property and shall be
secured hereby. Developer will repay on demand all sums so
advanced by Mortgagee with interest at the Overdue Interest
Rate. The provisions of this SECTION 3.11 shall not prevent
any default in the observance of any covenant from~consti-
tuting an Event of Default hereunder.
3.12. Security Agreement. Mortgagors, Developer
and Mortgagee agree that this Mortgage shall constitute a
Security Agreement within the meaning of the Uniform Com-
~ mercial Code (hereinafter in this paragraph- referred to as
r the "Code") with respect to any property included in the
definition of the word "Mortgaged Property", which property
j may not be deemed to form a part of the Premises described
in Schedule A hereto or may not constitute a fixture
(within the meaning of Section 9-313 of the Code), and all #
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so~342 P~E16~2
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