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HomeMy WebLinkAbout2688~ ~ • 1 / r such compensation, awards, damages, claims, rights of action and proceeds and the right thereto are hereby assigned by the Mortgagor to the Mortgagee, who after deducting therefrom all its expenses, including attorney's fees, may release any monies so received by it without affecting the lien of this Mortgage and may apply the same in such manner as the Mortgagee shall determine, to the reduction of the sum secured hereby, and any balance of such monies then remaining shall be paid to the Mortgagor. The Mortgagor agrees to execute such further assignment of any compensation, awards, damages, rights of action and proceeds as the Mortgagee may require. Eleventh: CONSTRUCTION LOAN AGREEN~NT. The aggregate indebtedness secured.hereby is being advanced by the Mortgagee ~ pursu-nt to the provisions of a Construction Loan Agreement (the "Construction Loan Agreement") of even date herewith, between the Mortgagee as Lender and the Mortgagor as Borrower. A default declared by Mortgagee under the Construction Loan Agreement shall constitute a default hereunder. ARTICLE ZI First: EVENT OF DEFAULT. The term default or event of default wherever used in this Mortgage and Security Agreement, shall mean any one or more of the following events: (a) Failure for the space of 10 days to pay as and when due and payable any installment of principal, interest or escrow deposits; -11- ~ ~ E ..~. ; . ~r~ ~~. ~~.~. ~,=~ :- ~r;.~ ~ s~R 347 Q~~~ 2~1 ~~~• , :~ ~ ~ ~c r.t~~~