3. HRSR 05-16-2005 - Laserfiche WebLink

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6. INSURANCE. At its own expense, Mortgagor will maintain for the benefit of Mortgagee title insurance insuring the interest of Mortgagee in the Mortgaged Property, and will keep the improvements now existing or hereafter erected on the Mortgaged Property insured against loss by fire and such other hazards, casualties, and contingencies as may be stipulated from time to time by Mortgagee, and all such insurance shall be evidenced by standard title insurance, and standard fire and extended coverage insurance policy or policies, in such amounts as may be required by Mortgagee, and in default thereof Mortgagee shall have the right to effect insurance at the expense of Mortgagor. Such policies, other than the title insurance policy referenced above, shall be endorsed with a standard Mortgagee clause with loss payable to Mortgagee, shall have a replacement cost endorsement, and shall be deposited with the Mortgagee. Mortgagor shall pay all premiums on such insurance at least ten (10) days prior to the date the premium on each policy shall become due and payable, subject to the provisions for premium escrow set forth in Section 7 hereof. At the written request of Mortgagee, Mortgagor shall promptly furnish to Mortgagee all written notices and all paid premium receipts received by Mortgagor. In the event of loss, Mortgagor shall give prompt notice by mail to the insurance carrier and Mortgagee, and Mortgagee may make proof of loss if not made promptly by Mortgagor. Mortgagee is hereby authorized in the event of loss to compromise and settle all loss claims on said policy on such terms as it deems appropriate. Mortgagor shall promptly furnish to Mortgagee a copy of any proof of loss given to the insurance carrier. If the Mortgaged Property, or any part thereof, shall be damaged by fire or other insured hazard, the amounts paid by any insurance company shall be paid to Mortgagee, to the extent of the Indebtedness then remaining unpaid, and, at the option of Mortgagee, all or any part of such amount may be applied in reduction of the Indebtedness, or released for the repairing or rebuilding of the Mortgaged Property. All policies of insurance and any and all refunds of unearned premiums are hereby assigned to Mortgagee as additional security for the payment of the Indebtedness. In the event of foreclosure of this Mortgage, all right, title, and interest of Mortgagor in and to any insurance policies then in force shall pass to the purchaser on foreclosure. Notwithstanding anything to the contrary contained in this Section 6, or in Section 13 hereof relating to condemnations, Mortgagee agrees that, for the term of this Mortgage, in the event of a loss by fire or other hazard or a partial taking in condemnation permitting repair or restoration of the Mortgaged Property, then Mortgagee shall, provided that the amount of condemnation or insurance proceeds plus any other monies that Mortgagor deposits with Mortgagee are sufficient, in Mortgagee's sole discretion, to fully repair or restore the Mortgaged Property to its condition immediately prior to such loss or partial taking, authorize the release of