Laserfiche WebLink
hereby assigned to Mortgagee as additional security for the payment of the <br /> Indebtedness secured hereby. In the event of foreclosure of this Mortgage, <br /> all right, title and interest of Mortgagor in and to any insurance policies <br /> then in force shall pass to the purchaser at the foreclosure sale. Mortgagee <br /> agrees that the insurance required by this Mortgage may be provided by a ; <br /> tenant of the Mortgaged Property or an affiliate of Mortgagor. <br /> (b) The policies of all such insurance shall have mortgagee and <br /> loss payable provisions in favor of Mortgagee. All such insurance shall be <br /> in form acceptable to Mortgagee,shall provide for at least thirty(30)days' <br /> prior written notice of cancellation, termination or modification thereof to <br /> Mortgagee, shall permit Mortgagee to make premium payments to prevent <br /> cancellation, and shall provide that no act or negligence of Mortgagor or <br /> of any occupant of the Mortgaged Property, and no occupancy or use of <br /> the Mortgaged Property for purposes more hazardous than permitted by <br /> the terms of the policy, will affect the validity or enforceability of such <br /> insurance as against Mortgagee. In the event of loss under such insurance <br /> Mortgagor shall give prompt notice to the insurance carrier and <br /> Mortgagee; Mortgagor shall duly make proof of loss, and shall <br /> immediately furnish to Mortgagee a copy of such proof of loss. <br /> (c) Subject to the rights of the vendor under the Contracts for <br /> Deed, Mortgagee i s authorized and empowered to settle, collect and <br /> � <br /> receive all fire and hazard insurance proceeds, to apply such proceeds to <br /> all expenses(including reasonable attorneys' fees) reasonably incurred by <br /> Mortgagee in collecting the same and, at Mortgagee's option and in its <br /> sole discretion, apply the balance of said proceeds (`Net Proceeds") to <br /> payment of the Indebtedness or make the Net Proceeds available for the <br /> repair and restoration of the Mortgaged Property; p rovided, however, <br /> Mortgagor may settle claims without Mortgagee's consent if the loss is <br /> less than $5,000.00 and no Event of Default exists at the time of <br /> settlement. Mortgagor shall apply any such proceeds to the repair and <br /> restoration of the Mortgaged Property. So long as no Event of Default <br /> exists, any settlement of a fire and hazard insurance claim of more than <br /> $5,000.00 shall require the consent of Mortgagor, which consent will not <br /> be unreasonably withheld. <br /> (d) If Mortgagee elects to apply the Net Proceeds to repair and <br /> restoration of the Mortgaged Property(1)the Net Proceeds shall be held by <br /> Mortgagee and at Mortgagee's election may be disbursed either by <br /> Mortgagee or a disbursing agent selected by Mortgagee and paid by <br /> Mortgagor, (ii) upon Mortgagee's request prior to disbursement of any Net <br /> Proceeds or thereafter, from time to time, Mortgagor will deposit with <br /> Mortgagee such amounts in excess of remaining Net Proceeds as <br /> Mortgagee reasonably determines is required to complete the repair and <br /> restoration, (iii) the Net Proceeds and any funds deposited by Mortgagor <br /> shall be held and disbursed in accordance with sound construction loan <br /> -6- <br />