HomeMy WebLinkAbout1796 @1 i22~90 13: 13 C~JNSTER-HC1CA 012
the Mort9eqor fails to ~r~vide, mai~tain, keep in force or
dcliver en~9 turniah to ~he Murtgayee the policiea of inaurance
rcquireA by thia Section, the Mortqeqee may prOCUre SuCt1
insurance or sinqle-intere~tt inaurance tor such ~i~ks coverirtq
the Mortyegee'a interest. The Mortgaqor will p~y all premiums
khQreor? promptly upon demand by the Mortqagee ~nd, until SuCh
paymgnt is made by the M~rt9eqor, the amount Ot all St1Ch
premiuma together with interest therepll at th9 mazimum CODtIaCt
rate of interest permitl.ed t~y l~w.
(c) ~1~Getion of Proceeda and l~watQ~. The
Mortqagor will promptly yive the Mortqagee writteR notice Of
any damage to or tlestructivn oL the MortgBg@d Property Or any
part thereof, yenerally describinq the nature ap~ eztent of
such damage or deal.ruction and the Mortqagor•s beSt estimatt of
the coat ot restorinq the Moltgaqed Property. ProviAed the
Mc~rtgaqor shall n4t be in default hereunder or under any of the
; Loan Documents and provide~ the cost of restorinq the Mo~tgaqed
~ Property shall not exceed the insurance proceed~ paysble to
f Mortgagor on account of the 6amage or destruction to the
; Mortga~ged Pc~perty, the Mortgagor shall be entitled to use such
f proceeds fox ths repair, reconstruction or restoration of the
; Mortgaged Prvperty a~d shall pay over the remaining pro~eeds,
~ if any, to the Mortgagee. In the event the Cost o£ restoring
; the Mort4aqed Property exceeds the amount o! insurance proceeds
payable on account of the damage or destruction thereto, the
Mortgagor shall deposit with the Mortgegee an amount equal to
the 9ifference between the cost of restoring the Mortgaged
€ Property and the amount of insurance proceeda and aha~l be
~ entitled to use the insurance proceeda in acco~dance with the
preceding sentence. ~n the event the Mortqagor shall be in
~ default hereunder or under any o~ the Loan nocu~ents, the
= Mortgagee shall be entitled to all insurance proceeds gayable
on account of such damaqe or destruction and the Mortgaqor
:F hereby irrevocsbly aasigns, tranafera end sets over to tha
~ Mortgagee all rights of the Mortqaqor to any such proceeds or
' payments and irrevocably authorizea end ampowers the Mortgagee,
~ at its option, in the name of the Mortqaqor or otherwise, to
~ file and prosecute what would otherwise be the Mortgayor's
claim ~or any such procee~s or payment and to collect, rece~pt
for and retain the same for diapvsitivn in accordance with this
Section. The Mortgagee may, a~t its optfon, apply all amounts
recovered under any i~suranc~ poliey required to be maintaine~
by the Mortqagar hereunder in any one or more of the following
ways: (a) to the payment of the reasoneble coats and eapenses
incurz~ed by the Mortgagee ~n obtaining such insuranc~ proceeds,
including the fees and espenses of attorneys and insurance and
other eaperts ~nd consultants, the costs of litigation,
arbitration, mediation, investiqations a~8 other judicisl,
~ adminiskrative or other proceedings and all other out-of-pocket
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1 ~ 80~K S75 ~~~E 1796
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