HomeMy WebLinkAbout21498. In consideration of the execution and delivery of the
note secured by this mortgage, wraparound mortgagee agrees to
pay the installments of principal and interest as the same be-
come due under the first mortgage, but only from, a~d to the .
extent of, the payments of principal and interest received by
wraparound mortgagee on the note hereby secured. The foregoing
obligation shall in no event include in respect to the first
mortgage any penalty or premium, or any amounts required to be
paid in addition to principal or interest or any installments of
principal or interest which become due by acceleration, except
any such penalty, premium or amounts required to be paid as a
direct result of wraparound mortgagee's failure to perform its
obligations hereunder.
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9. Wraparound mortgagee will, at the time it makes each
payment to first mortgagee, send to mortgagor an advice that
each such payment has been made.
10. Notwithstanding any other provisions in this mortgage,
if, pursuant to the ~irst mortgage, insurance proceeds in respect
of any damage or destruction or any award or payment applicable
to a taking by eminent domain are applied against the note
secured by the first mortgage, wraparound mortgagee may declare
the note hereby secured due and payable at any time thereaf ter
unless the mortgaged property remaining after any such taking
or damage or destruction is sufficient in wraparound mortgagee's
sole judgment to adequately secure the payment of the note hereby
secured.
11. The references contained in this mortgage to the obli-
gations of mortgagor or wraparound mortgagee to pay any sum
owing on the first mortgage shall not constitute an assumption
of personal liability for any such payment and shall not in any
way modify the obligations o€ mortgagor to first mortgagee beyond
the obligations of mortgagor under any existing agreement with
first mortgagee.
12. Mortgagor agrees t~o pay to wraparound mortgagee the escraw amounts
required to be paid under the first mortgage „ i~ any, other than with respect
to principal and interest under said first m~rtgage, at least ten days prior
to the last day under said mortgage that such payments may be made without
oonstituting a default thereunder, and wraparound mortgagee agrees to prcxnptly
remit such amounts to first mortgagee. ~
13. If the wraparound mortgagee shall default in making a
required payment of principal and/or interest under the ~first mort-
gage, the mortgagor shall have the right to advance the fur,ds
necessary to cure such default and all funds so advanced together
with inter.est thereon at the rate of twelve per cent per annum shall
be credited against the next installment(s) of principal and interest
due under the note secured by this mortgage.
14. Mortgagor and wraparound mortgagee agree to promptly send
to.the other copies of any notices received by them from the first
mortgagee, or from insurers of the property.
15. Notwithstanding anythin9 to the contrary contained herein,
interest shall not be payable by the wraparound•mortgagee on any
sums deposited with or held in trust by the wraparound mortgagee
pursuant to any provision hereof.
16. Mortgagor shall obtain insurance an the property for the
highest insurable value and mortgagor agrees to provide the insurance
company with the names and the interests of wraparound mortgagee as
well as the interests of first mortgagee.
NO~IE: Nbrt~gagor may prepay the indebtedness secvred by this cn~rtgage, pravided
such prepayment shall be in an amount not less than the amount of one instalLnent
as specified in the wraparound t~artgage note. Wraparound mortgagee shall apply
such prepayment first to the first mortgage, and the balance shall be paid to
the holder of the wrapara.~nd~mortgage and note. First m~rtgagee shall be paid
upon clearanoe or verification of the availability of funds paid by mortgagor
ta be applied as a prepayment hereunder. ~~K
F.~~ 347 P~~E 214:3
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