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200204303
<br />All insurance provided for in this Section 1.11 shall be effected under a valid, enforceable and
<br />manually signed policy or policies of insurance in form and substance approved by Mortgagee,
<br />shall be issued by insurers of recognized responsibility, which are licensed to do business in the
<br />State of Nebraska, which have a minimum rating of A and a financial class size of IX or better,
<br />which are acceptable to Mortgagee, and shall be satisfactory to Mortgagee in all other respects.
<br />All policies maintained by Mortgagor pursuant to the foregoing Subsections A, C and D shall (1)
<br />provided that any losses payable thereunder shall (pursuant to a loss payee clause in favor of, and
<br />acceptable to, Mortgagee, to be attached to each such policy) be payable to Mortgagee and
<br />assigns, (ii) include effective waivers by the insurer of all claims for insurance premiums against
<br />Mortgagee, (iii) provide that any losses shall be payable notwithstanding (a) any act of
<br />negligence by Mortgagor or Mortgagee, (b) any foreclosure or other proceedings or notice of
<br />sale relating to the Mortgaged Property, (c) the vacancy of the Improvements, (d) any waiver of
<br />subrogation rights by the insured, and /or (e) any change in the title to or ownership of any of the
<br />Mortgaged Property, and (iv) be written in amounts sufficient to prevent Mortgagor from
<br />becoming a co- insurer under said policies. The liability insurance policies described in the
<br />foregoing Subsection B shall name Mortgagee as an additional named insured, shall contain a
<br />separation or severability of interests clause and shall waive contribution from any other
<br />insurance carried by Mortgagee in the event of loss. Mortgagor shall cause the originals of the
<br />policies of all such insurance (or certified copies of blanket policies, with certificates of
<br />insurance covering the Mortgaged Property) to be deposited with Mortgagee or to be otherwise
<br />held as directed by Mortgagee. At least fifteen (15) days prior to the date on which the
<br />premiums on each such policy shall become due and payable, Mortgagor shall furnish Mortgagee
<br />with proof reasonably satisfactory to Mortgagee of payment thereof. Each of such policies shall
<br />contain an agreement by the insurer that the same shall not be amended, modified, canceled,
<br />reduced or terminated for any reason, including, but not limited to, a failure to pay premiums
<br />and /or expiration by its terms, without at least thirty (3 0) days' prior written notice to Mortgagee.
<br />If this Mortgage is foreclosed, the purchaser at the foreclosure sale shall, after the expiration of
<br />any statutory period of redemption, become the sole and absolute owner of any and all such
<br />policies, with the sole right to collect and retain all unearned premiums thereon, and, for this
<br />purpose, Mortgagor hereby assigns and grants a security interest in said policies and unearned
<br />premiums to Mortgagee.
<br />In the event of loss, Mortgagor shall immediately give written notice thereof, and of any claims
<br />filed under insurance policies as a result thereof, to Mortgagee, and (a) if any event of default
<br />then exists hereunder, or (b) if Mortgagor does not promptly and in good faith make proof of loss
<br />and settle, adjust or compromise any claims for loss, damage or destruction under any policies of
<br />insurance maintained pursuant to Subsections A, C and D hereof, and collect the proceeds
<br />thereof, Mortgagee is authorized and empowered (but not obligated or required) to make proof of
<br />loss; settle, adjust or compromise said claims; and collect and receive all such proceeds. The
<br />amount of any such settlement, adjustment or compromise of claims shall always be subject to
<br />Mortgagee's approval. Mortgagor agrees to pay all costs and expenses incurred by Mortgagee in
<br />connection therewith, including court costs and attorneys' fees (prior to trial, at trial and on
<br />appeal), on demand, which costs and expenses shall also be secured hereby and shall bear
<br />interest from the date paid at the Default Rate specified in the Note (hereinafter referred to as
<br />"Default Rate "), but Mortgagee shall not be liable to Mortgagor for any failure by Mortgagee to
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