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policies or certificates of the insurer evidencing the renewal of such insurance, together with evidence of the payment of current premiums therefor. (d) In the event of a foreclosure of this Mortgage or any acquisition of the Premises by Mortgagee, all such policies and any proceeds payable therefrom, whether payable before or after a foreclosure sale, or during the period allowed for redemption from foreclosure sale, if any, shall become the absolute property of Mortgagee, to be utilized at its discretion. In the event of foreclosure or the failure to obtain and keep any required insurance, Mortgagor empowers Mortgagee to effect insurance upon the Premises, at Mortgagor's expense, and for the benefit of Mortgagee, in the amounts and types aforesaid, for a period of time covering the time allowed for redemption, and, if necessary therefor, to cancel any or all existing insurance policies. (e) If the terms of any lease of the Premises require the lessee to maintain insurance policies in the types, in the amounts, and meeting the requirements of this section, Mortgagee agrees to accept such policies in lieu of Mortgagor furnishing the same hereunder, provided, if the lessee fails to keep and maintain such policies, Mortgagor shall immediately obtain such policies and, provided, the failure of the lessee to keep and maintain such policies shall not operate to relieve or reduce Mortgagor's obligations hereunder. ARTICLE 5 APPLICATION OF INSURANCE AND AWARDS Section 5.1 DAMAGE OR DESTRUCTION OF THE PREMISES. Subject to the rights of the holders of all prior mortgages listed as Permitted Encumbrances, Mortgagor hereby assigns to Mortgagee all proceeds from any insurance policies on the Premises, and Mortgagee is hereby authorized to collect and receive the proceeds from any such policy or policies. Each insurance company is hereby authorized and directed to make payment for all such losses to Mortgagor and Mortgagee jointly. After deducting from such insurance proceeds any expenses incurred by Mortgagee in the collection or handling of such funds, Mortgagee shall apply the net proceeds toward restoring the improvements and if such proceeds are insufficient therefore, as a reduction of any portion of the indebtedness and other sums secured hereby, whether then matured or to mature in the future, or at the option of Mortgagee such sums either wholly or in part may be paid over to Mortgagor to be used to repair such improvements or to build new improvements in their place or for any other purpose or object satisfactory to Mortgagee, without affecting the lien of this Mortgage for the full amount secured hereby before such payment took place. Mortgagee shall not be responsible for any failure to collect any insurance proceeds due under the terms of any policy regardless of the cause of such failure. Notwithstanding the foregoing, if the improvements are damaged or destroyed prior to the Maturity Date, the net proceeds from the insurance policies will be made available for repair and reconstruction of the improvements so long as such funds, together with any other funds deposited with Mortgagee, are sufficient to pay the costs thereof. Mortgagee specifically reserves the right to approve any settlement by Mortgagor of any claim under such insurance policies, which approval shall not be unreasonably withheld. Section 5.2 CONDEMNATION. If the Premises, or any part thereof, or any interest therein, or any rights appurtenant thereto, including, but not limited to, access, light, air, and view, are condemned under any power of eminent domain or acquired for. any public use or quasi-