2025.07.07 CC Packet - Laserfiche WebLink

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5 (f) That the whole of the principal sum shall become due after default, in the payment of any installment of principal or interest, or of any tax, or in the performance of any other covenant, at the option of the Mortgagee. 2. Additional Covenants and Agreement of Mortgagor. The Mortgagor makes the following additional covenants and agreements with the Mortgagee: (a) Any award of damages under condemnation or payment in lieu thereof for injury to or the taking of all or any part of the mortgaged premises are hereby assigned to the Mortgagee with authority to apply the proceeds to the amounts outstanding on the Note. All such proceeds shall be applied first to accrued interest, if any, and then to the principal amount outstanding on the Note, and if the principal amount is payable in installments, said proceeds, after payment of accrued interest, shall be applied to said installments in the inverse order of their maturity. (b) Any proceeds of any insurance payable by reason of loss or damage to the mortgaged premises are hereby assigned and shall be paid to the Mortgagee with authority to apply the proceeds to the amounts outstanding on the Note. All such proceeds shall be applied first to interest, if any, and then to the principal amount outstanding, and if the principal amount is payable in installments, said proceeds after payment of accrued interest, shall be applied to said installments in the inverse order of maturity. Provided no Event of Default has occurred and is continuing hereunder and no event has occurred which with notice or passage of time or both would mature into such an Event of Default, Mortgagor may elect to make repairs on the mortgaged premises. The insurance proceeds necessary to undertake any repair work shall be deposited in escrow with a title insurance company qualified to do business in Minnesota, or with any other party mutually agreeable to the parties. Mortgagor shall also deposit into such escrow amounts in excess of such insurance proceeds as may be necessary to complete the repairs. Even if the insurance proceeds are unavailable or are insufficient to pay the cost of the repair work, Mortgagor shall at all times be responsible to pay the full cost of the repair work. All escrowed funds shall be disbursed by the escrowee in accordance with generally accepted sound construction disbursement procedures. The election by the Mortgagor may be made only by written notice to the Mortgagee and all plans, specifications, and contracts for the repair work must be approved in writing by the Mortgagee. The costs incurred, or to be incurred on account of such escrow shall be deposited by Mortgagor into such escrow before the commencement of the repair work. Mortgagor shall substantially complete such repair work so as to permit substantial resumption of business as soon as reasonably possible but in no event longer than 180 days from the date of loss or damage (such period to be extended in the event of natural disasters or other acts of God outside the control of Mortgagor that cause delays in completing such repair work) and in a good and workmanlike manner.