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foreclosure of this Mortgage, all. right, title and interest of the Mortgagor in and to any property
<br />insurance policies then in force shall pass to the purchaser at the foreclosure sale.
<br />SECTION 2.02. CONDEMNATION. The Mortgagor shall give the Mortgagee 'immediate
<br />written notice of the actual or threatened comnilenclement of an,Y proceedings, under
<br />condemnation or eminent domain affecting all or any part of the Mortgaged Property or any
<br />easement therein or appurtenance thereof. If all or any part of the Mortgaged Property 'is
<br />damaged, taken or acquired,, either temporarity or permanently', in any condemnation proceeding,
<br />or by exercise of the right of eminent domain, the amount of any award or other payment for
<br />such taking, acquisition or damages made *in clonsideration thereof, to the extent of the full
<br />amount of the remaining unpaid Indebtedness Secured Hereby,, is hereby assigned to the
<br />Mortgagee, who is empowered to collect and receive the same acid to, give proper receipts
<br />therefor and the same shall be paid forthwith to the Mortgagee, to be applied to the Indebtedness
<br />Secured Hereby, and any an-iount over the applicable release price shall be paid to the
<br />Mortgagor. Notwithstanding the provisions above in this Section 2.02, if it is reasonably
<br />determined by both the Mortgagor and the Mortgagee that application of condemnation awards
<br />for it of the Mortgaged Property would 'increase the value of the Mot-tgagied Property,
<br />then, to the extent that application of the proceeds from an ' y such c ond emnat, "lion d
<br />awards world:
<br />not in any way impair the security interest and lien of the Mortgagee, then the Mortgagor shall
<br />have the option to use such proceeds to improve the Mortgaged Proplerty as agreed between the
<br />W
<br />Mortgagor and the Mortgagee or to prepay the Note. Any prepayment of the Note as a result of
<br />condemnation proceeds will not result in a prepayment penalty.
<br />SECTION 2.03. MORTGAGOR TO REPAIR, REPLACE, REBUILD OR RESTORE. If
<br />any portion of the Indebtedness Secured Hereby is outstanding when all or any part of the
<br />Mortgaged Property is destroyed or damaged, unless the Mortgagor elects to, prepay the Note if
<br />permitted thereby or unless the Mortgagee elects, at the Miortgalglee's, option,, which option is
<br />hereby irrevocably granted by the Mortgagor to the Mortgagee only 'if' there is an Event of
<br />Default under the Note at the time of the event causing such damage or destruction, which Event
<br />of Default continues through the date when the Mortgagee elects, by written notice to the
<br />Mortgagor to apply such proceeds as a prepayment of the Note, then:
<br />(1) the Mortgagor shall proceed promptly, subject to the provisions of subsection (2)
<br />of this Section 2.03, to replace, repair, rebuild and restore the Mortgaged Property to
<br />substantially the same condition as existed before the taking or event causing the damage
<br />,with such changes, alterations and modifications (inClUdin substitution or
<br />or destruction, wi 9
<br />addition of other property) as may be desired by the Mortgagor and approved by the
<br />Mortgagee which approval will not be unreasonably, withheld-
<br />') all proceeds of any insurance claim shall be paid directly to, the Mortgagee. The
<br />Mortgagee shall apply the proceeds, less such sure, if any, required for payment of all
<br />expenses incurred in collecting the same ("Net Priocieleds"), to payment of the cysts of
<br />repair, replacement, rebuilding or restoration ofthie Mortgaged Property. If' an Event of
<br />Default occurs while the Mortgagee is retaining the Net Proceeds,, the Mortgagee may
<br />apply the Net Proceeds to the Indebtedness Secured Hereby. The balance of the Net
<br />Proceeds remaining after payn-iient of all costs of any repair, rebuilding, replacement or
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