HomeMy WebLinkAbout0999 shall require. All premiums on insurance policies shall be
paid, at Lender's option, in the manner provided under paragraph
2 hereof, or by Horrower making payment, when due, directly to
the carrier or in such other manner as Lender may designate in
writing.
All insurance policies and renewals thereof shall
be in a form acceptable to Lender and shall include the New York
Standard or other standard mortgagee clause in favor of and in
form acceptable to Lender. Lender shall have the right to hold
the policies, and Borrower shall promptly furnish to Lender all
renewal notices ana all receipts of paid premiums. At least
thirty days prior to the eapiration date of a policy, Borrower
shall deliver to Lender a renewal policy in form satisfactory to
Lender.
In the event of loss, Horrower shall give
immediate written notice to the insurance carrier and to
Lender. Borrower hereby authorizes and empowers Lender as
attorney-in-fact for Borrower to make proof of loss, to adjust
and compromise any claim under insurance policies, to appear in
and prosecute any action arising from such insurance policies,
to collect and receive insurance proceeds, and to deduct
therefrom Lender's eapenses incurred in the collection of such
proceeds; provided, however, that nothing contained in this
paragraph shall require Lender to incur any eapense or take any
action hereunder. Horrower further authorizes Lender, at
Lender's option, (a) to hold the balance of such proceeds to be
used to reimburse Borrower for the cost of restoration or repair
of the Project or (b) to apply the balance of such proceeds to
the payment of the sums secured by this Instrument, whether or
not then due, in the order of application set forth in paragraph
3 hereof .
If the insurance proceeds are held by Lender to
reimburse Borrower for the cost of restoration and repair of the
Project, the Project shall be restored to the equivalent of its
original condition or such other condition as Lender may approve
in writing. Lender may, at Lender's option, condition
disbursement of said proceeds on Lender's approval of such plans
and specifications of an architect satisfactory to Lender,
contractor's cost estimates, architect's certificates, waivers
of liens, sworn statements of inechanics and materialmen and such ~
other evidence of costs, percentage completion af construction,
application of payments, and satisfaction of liens as Lender may ~
require. If the insurance proceeds are applied to the payment ,
of the sums secured by this Instrument, any such application of '
proceeds to principal shall not eatend or postpone the due dates
of the monthly installments referred to in paragraphs 1 and 2
hereof or change the amounts of such installments. If the
Project is sold pursuant to paragraph 25 hereof or if Lender
acquires title to the Project, Lender shall have all of the
right, title and interest of Borrower in and to any insurance
~ policies and unearned premiums thereon and in and to the
~ proceeds resulting from any damage to the Project prior to such
~ sale or acquisition.
~ 6. PRESERVATION AND MAINTENANCE OF PROJECT. Borrower
~ (a) shall not commit waste or permit impairment or deterioration
of the Project, (b) shall not abandon tihe Project, (c) shall
restore or repair promptly and in a qood and workmanlike manner
all or any part of the Project to the equivalent of its original
condition, or such other condition as Lender may approve in
writing, in the event of any damage, injury or loss thereto,
whether or not insurance proceeds are available to cover in
~ whole or in part the costs of such restoration or rep~ir, (d}
G shall keep the Project, including improvements, fiatures,
equipment, machinery and appliances thereon in good repair and
~ shall replace fiztures, equipment, machinery and appliances on
the Project when necessary to k~:ep such items in good repair,
~e) shall comply with all laws, ordinances, regulations and
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~ 490 P~~f 9~2
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