HomeMy WebLinkAbout0233strike, civil commotion, aircraft, vehicles, flood and smoke and
such other hazards as Mortgagee may from time to time require, all
in amounts.approved by Mortgagee not exceeding 1008 of full insura-
ble value, and when and to the extent required by Mortgagee, against
any othe'r risk insured against by persons operating similar proper-
ties in the vicinity of the Premises. All ins~rance herein provided
for shall be in form and companies approved by Mortgagee; ar~ regard-
less of the types or amounts of insurance required and approved by
Mortgagee, Mortgagor shal-1 assign and deliver to Mortgagee, as colla-
teral and further security for the payment of the Secured Indebted-
ness, all policies of insurance which insure against any loss or dam-
age to the Premises, with loss payable to Mortgagee, without contri-
bution by Mortgagee, pursuant to the New York Standard or other mort-
gagee clause satisfactory to Mortgagee. The delivery of the insur-
ance policies shall constitute an assignment, as further security, of
all unearned premiums existing from time to time thereon.
In the event that a casualty occurs to the premises which is
attributable to an insured risk under the insurance being required
under the preceding paragraph or under the builder's risk policy re-
quired to be carried by Mortgagor under the Construction Loan Agree-
ment and the insurer of such policy pays insurance proceeds pursuant
to such casualty losa and provided no event of default exists here-
under, then the proceeds shall be paid directly to Mortgagee for the
purpose of permitting Mortgagor to restore the Premises pursuant to
the terms and conditions of this Mortgage and Security Agreement and
the K mart Lease, provided, however, that Mortgagee shall not be re- ~~~
quired to disburse any such insurance proceeds in any sum in excess
of the restoration costs actually incurred by Mortgagor and provided
further that Mortgagee shall not be required to disburse funds until
amendments have been received to the K mart Lease which extend th e
time for completion af the improvements to a time which, in Mortga-
gee's reasonable opinion, can be met by Mortgagor. Prior to the com-
mencement of such restoration, Mo~tgagor shall submit to Mortgagee
a detailed cost estimate with respect to such restoration. If the
insurance proceeds shall appear to be insufficient to pay the entire
cost of such restoration, Mortgagor shall deposit with Mortgagee a
sum sufficient to pay such deficiency prior to the commencement of
such restoration.
All disbursements for such restoration shall be made only af-
ter approval of plans and specificatiohs by Mortgagee and the tenant
under the K mart Lease and shall be made pursuant to such construc-
tion contracts, architect's certifications, invoices, lien waivers,
governmental approval and such other matters as•Mortgagee may reason-
ably require, with such restoration to be completed to the satisfac-
,tion of Mortgagee acting reasonably and in good faith.
Any residual over the restoration costs incurred shall, at the
option of Mortgagee, be applied against the debt evidenced hereby as
a partial prepayment and such prepayment shall not diminish the amount
of the next due and payable installment under the Note.
In addition, until the Secured Indebtedness is fully paid, Mart-
gagor shall maintain, or cause to be maintained, the following insur-
ance on a fully-paid basis:
(i) Public liability inaurance in an amount not less than
$300,000.00 per single occurrence, with an ~unbrella
liability of $2,000;000.00 minimum and a maximum re-
tention limit approved by Mortgagee; and
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F~~'~ 348 P~~E 233 ~
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