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<br />collect or to exercise diligence in collecting any such proceeds. All proceeds of such insurance
<br />are hereby assigned, and shall be paid, to Mortgagee. Such proceeds shall, at Mortgagee's
<br />option, be applied first to the payment of all costs and expenses incurred by Mortgagee in
<br />obtaining such proceeds, and second, at Mortgagee's option, either to the reduction of the
<br />indebtedness hereby secured in such order as .Mortgagee may elect, whether then due and
<br />payable or not, without reinvestment charge, or to the restoration or repair of the Mortgaged
<br />Property, without affecting the lien of this Mortgage or the obligations of Mortgagor hereunder.
<br />Interest upon the entire indebtedness secured hereby shall continue until any such proceeds are
<br />received and applied to such indebtedness by Mortgagee. Pending a decision as to the proper use
<br />and application of any insurance proceeds, and during any such restoration or repair, Mortgagee
<br />shall not be liable for interest on such proceeds. In the event Mortgagee elects to apply said
<br />insurance proceeds in reduction of the indebtedness secured hereby, all expenses and fees of
<br />collection shall first be deducted and paid to Mortgagee, and it is further covenanted and agreed
<br />that should the net insurance proceeds be insufficient to pay the then existing indebtedness
<br />secured hereby, together with all accrued interest thereon, fees and charges, Mortgagee may, at
<br />its sole election, upon thirty (30) days' written notice to Mortgagor, declare the entire unpaid
<br />balance of the debt secured hereby to be, and at the expiration of said thirty (30) day period said
<br />amounts shall be and become, immediately due and payable and the failure of the payment
<br />thereof shall be an event of default hereunder. If Mortgagee elects to apply any such insurance
<br />proceeds to the restoration or repair of the Mortgaged Property, it shall not be liable for
<br />supervising such restoration or repair or for supervising the disbursement of such insurance
<br />proceeds therefor, but such disbursement shall proceed in a manner acceptable to Mortgagee,
<br />which shall be similar to the manner in which major national banks permit construction loan
<br />advances, and which shall be designed to include reasonable controls to assure that such
<br />restoration or repair will be promptly completed in a good and workmanlike manner and paid for
<br />in full, free of mechanics' liens. In such event, Mortgagor shall deposit with Mortgagee, prior to
<br />commencing any such restoration or repair, the amount, if any, by which the cost of such
<br />restoration or repair, exceeds the amount of such insurance proceeds which amount shall be
<br />disbursed to pay costs of such restoration or repair prior to, and in the same manner as, such
<br />insurance proceeds. Any surplus which may remain after payment of all costs of restoration or
<br />repair may, at the option of Mortgagee, be applied to reduction of the indebtedness hereby
<br />secured, in any order which Mortgagee may determine, whether then matured or to mature in the
<br />future, without reinvestment charge, or be paid to Mortgagor, as its interest may appear, the
<br />choice of application to be solely at the discretion of Mortgagee. In no event shall Mortgagee be
<br />held responsible for failure to pay for any insurance required hereby or for any loss or damage
<br />growing out of a defect in any policy thereof or growing out of any failure of any insurance
<br />company to pay for any loss or damage insured against or for failure by Mortgagee to obtain
<br />such insurance or to collect the proceeds thereof.
<br />CPr•tinn 1 17.
<br />Mortgagor shall pay or cause to be paid promptly, when due, all charges or fees for utilities or
<br />services, including, but not limited to, electricity, water, gas, telephone, sanitary sewer, and trash
<br />and garbage removal, supplied to the Mortgaged Property, and, upon request of Mortgagee, shall
<br />furnish receipts to Mortgagee showing such payment.
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