HomeMy WebLinkAbout0970 payment o! pre~ium and the reiesuance oP a policy continuing
ineurance in Porce ae required by thia Mortgage. All euch
policies shall contai~a a provision that ~uch policies wi11
not be canceled or materislly amended, which term sha11
include any reduction in the scope or limits of coverage,
without at leaet fifteen (15) days prior written notice to
Mortgagee. In the event Mortgagor faile to provide,
maintain, keep in force or deliver and furnish to Mortgagee
the policies oP insurance required by this Section, Mortgagee .
may procure such insurance or single-interest ineurance for
such risks covering Mortgagee's interest, and Mortgagor will
pay all premiums thereon promptly upon demaad by Mortgagee,
and until auch payment is made by Mortgagor the amount of all
such premiums together with interest thereon at a rate of
interest which is four (4) percentage pointa above the rate
of the Notes shall be secured by this Mortgage.
1.07 Insurance Proceede. After the happening of any
casualty to the Mortgaged Property or any part thereof,
Mortgagor sha11 give prompt written notice thereof to
Mortgagee.
(a) In the event of any damage to or destruction of
the Imp rovements, Mortgagee shall have the option in its
sole discretion of applying or paying al1 or part of the
ineurance proceeds (i) to any indebtedness secured hereby
and in such order as Mortgagee may determine, or (ii) to
the restoration of the Improvements or (iii) to
Mortgagor.
(b) In the event of such loss or damage, all
proceeds of insurance sha11 be payable to Mortgagee, and
Mortgagor hereby authorizes and directs any affected
inaurance company to make payment of such proceeds
directly to Mortgagee. Mortgagee is hereby authorized .
and empowered by Mortgagor to settle, adjust or .
compromise any claims for loss, damage or destruction
under any policy or policies of insurance.
(c) Except to the extent that insurance proceeds
are received by Mortgagee and applied to the indebtedness
aecured hereby, nothing herein contained shall be deemed
to excuse Mortgagor from repairing or maintaining the
Mortga~ed Property as provided in this Mortgage or
restor~ng all damage or destruction to the Mortgage
Property, regardless of whether or not there are
insurance ~roceeds available or whether any such proceeds
are sufficient in amount, and the application or release
by Mortgagee of any insurance proceeds shall not cure or
waive any @efault or notice of default under this
Mortgage or invalidate any act done pursuant to such
ngtice.
1.08 Indemnification; Subro~ation; Waiver of Offset.
(a) If Mortgagee is made a party defendant to any
litigation con~erning this Mortgage or the Mortgaged
Property or any part thereof or interest therein, or the
occupancy thereof by Mortgagor, then Mortgagor sha11
indemnify, defend and hold Mort~agee harmiess from a11
liability by reason of said litigation, including
reasonable at~orneys' fees and expenses incurred by
Mortgagee in any such litigation, whether or not any such
litigation is prosecuted to judgment.
(b) Mortgagor waives any and all right to claim or .
recaver against Mortga~ee, its officers, employees,
agente and representatives, for loss of or damage to
Mortgagor, the Mortgaged Property, Mortgagor's property
or the property of others under Mortgagor's control f rom
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sooK 5~1 Pacf 970
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