HomeMy WebLinkAbout1935seeds of insurance shall be applied bo reimburse the Ibrtgagor for the
cost of restoring, repairing, replacing or rebuilding the Premises or
part thereof subject to Insured Casualty, as provided for in Para-
graph 8 below, and the Mortgagor hereby covenants and agrees forthwith
to cam-ence and to diligently prosecute such restoring, repairing,
replacing or rebuilding; provided, always, that the Mortgagor shall
pay all costs of such restoring, repairing, replacing ar rebuilding in
excess of the proceeds of insurance.
(c) Except as provided for in Subsection (b) of this
Paragraph, the Mbrtyagor may apply the proceeds of insurance conse-
quent upon any Insured Casualty upon the Indebtedness Hereby Secured,
in such order or manner as the Nbrtgagee may elect.
(d) In the event that proceeds of insurance, if any,
shall be made available to the Mortgagor for the restoring, repairing,
replacing or rebuilding of the Premises, .the Mortgagor hereby cove-
nants to restore, repair, replace or rebuild the same, too be of at
least equal value, and of substantially the same character as prior bo
such damage or~destruction; all to be effected in accordance with
plans and specifications to be first submitted to and approved by the
Mortgagee, not too be unreasonably withheld. The Mortgagee shall have
the right to require the deposit by M~rtagor of additional funds over
and above the insurance proceeds if Mortgagee rea.onably believes such
additional funds are necessary to complete the restoration and bo re-
quire the posting of a cor~letion, performance and payment bond in
connection therewith. -
8. t~brtgagor further covenants to maintain rental insur-
ance in form acceptable to Mortgagee in an amauit sufficient ~ cower
the loss of income plus all costs of operation of the security proper-
ty for six (6) months. Failure of the Mortgagor bo effect said
insurance or any portion thereof or to pay the premiums therefor, or
to repay the Nbrtgagee for premiuns advanced therefor shall give the
Mortgagee the right and option to declare the entire principal bal-
ance, together with all interest and advances made thereunder, due and
payable with the further option of immediately foreclosing this Mart
gage for the ronpayment thereof.
9. In the event the Mortgagor is entitled bo reimbursement
out of insurance proceeds held by the Mortgagee, such prnc.-eeds shall
be disbursed from time bo time upon the Mortgagee being furnished with
satisfactory evidence of the estimated cost of co~~letion of the
restoration, repair, replacement and rebuilding with funds (or assurL
antes satisfactory too the Mortgagee that such funds are available)
sufficient in addition to the proceeds of insurance, too complete the
proposed restoration, repair, replacement and rebuilding and with such
architect's certificates, waivers of lien, contractor's sworn state-
ments and such other evidences of cost and of payment as the Mortgagee
may reasonably require and approve, not to be unreasonably withheld;
and the Mortgagee may, in any event, require that all plans and sped
fications for such restoration, repair, replacement and rebuilding be
submitted too and approved by the Mortgagee prior ~ commencement of
work. No payment made prior to the final completion of the restora-
tion, repair, replac-em~ent or rebuilding shall exceed Ninety Percent
(90$) of the value of the work performed from time bo time; funds
other than proceeds of insurance shall be disbursed prior bo disburse-
ment of such proceeds; and at all times the undisbursed balance of
such proceeds remaining in the hands of the Mbrtgage!e, together with
funds deposited for the purpose or irrevocably committed do the satis-
faction of the Mortgagee by or on behalf of the Mortgagor for the pur-
pose, shall be at least sufficient in the reasonable judgn-ent of the
Mortgagee bo pay for the cost of canpletion of the restoration,
repair, replacement or rebuilding, free and clear of all-liens or
claims for lien. tdo interest shall be allowed bo the Mortgagor on
account of any proceeds of insurance or other funds held in the hands
of the Mortgagee.
-4-
g~x344 Pa~fi935
LEW15. VEGOSEN ANO ROSENBACH, PA., ATTORNEYS AT LAW