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132777076v2 <br /> <br /> <br /> 9 <br /> <br /> <br />ARTICLE II <br /> <br />INSURANCE, CONDEMNATION, USE OF PROCEEDS <br />Section 2.1 Insurance. The Mortgagor shall keep the buildings, structures, fixtures <br />and other improvements now existing or hereafter erected on the Land insured against loss by <br />fire, vandalism and malicious mischief, perils of extended coverage, and such other hazards, <br />casualties and contingencies as may be reasonably specified by the Mortgagee. All insurance <br />shall be carried in companies approved by the Mortgagee and the policies and renewals thereof <br />shall (i) contain a waiver of defense based on coinsurance, (ii) be constantly assigned and <br />pledged to and held by the Mortgagee as additional security for the indebtedness secured by this <br />Mortgage, (iii) have attached thereto loss-payable clauses in favor of and in form acceptable to <br />the Mortgagee which provide for proceeds of insurance resulting from claims per casualty <br />thereunder to the improvements to the Land which are less than $75,000 for loss or damage <br />covered thereby to be made payable directly to the Mortgagor, provided that Mortgagor shall use <br />such proceeds for repair of the Mortgaged Property pursuant to Section 2.3(1) of this Mortgage <br />and proceeds from such claims which are equal to or in excess of $75,000 to be made payable <br />directly to the Mortgagee, and (iv) shall provide that Mortgagee shall receive thirty (30) days <br />notice in advance of cancellation or substantial modification of the policy. In default thereof, the <br />Mortgagee may effect such insurance and the amount paid therefor shall become immediately <br />due and payable. In event of loss the Mortgagor will give immediate notice by mail to the <br />Mortgagee, who may make proof of loss if not made promptly by the Mortgagor. The <br />Mortgagor hereby authorizes the Mortgagee to settle and compromise all claims on such policies <br />and hereby authorizes and directs each insurance company concerned to make payment for any <br />such loss directly to the Mortgagee instead of to the Mortgagor and the Mortgagee jointly. In <br />event of foreclosure of this Mortgage, all right, title and interest of the Mortgagor in and to any <br />property insurance policies then in force shall pass to the purchaser at the foreclosure sale. The <br />Mortgagor shall also maintain insurance against all liability for injury to persons or property <br />arising from the operation of the Mortgaged Property; and the Mortgagee shall be named as <br />additional insured. <br />Section 2.2 Condemnation. The Mortgagor shall give the Mortgagee immediate <br />notice of the actual or threatened commencement of any proceedings under condemnation or <br />eminent domain affecting all or any part of the Mortgaged Property or any easement therein or <br />appurtenance thereof. If all or any part of the Mortgaged Property is damaged, taken or <br />acquired, either temporarily or permanently, in any condemnation proceeding, or by exercise of <br />the right of eminent domain, the amount of any award or other payment for such taking, <br />acquisition or damages made in consideration thereof, to the extent of the full amount of the <br />remaining unpaid indebtedness secured by this instrument, is hereby assigned to the Mortgagee, <br />who is empowered to collect and receive the same and to give proper receipts therefor in the <br />name of the Mortgagor and proceeds from any such condemnation award which are equal to or <br />in excess of $75,000 shall be paid forthwith to the Mortgagee, to be held and applied as set forth <br />in Section 2.3 hereof; proceeds of any condemnation award which are less than $75,000 may be <br />made payable directly to the Mortgagor.