LIEN, OR,
IF NO SUCH LOAN POLICY SHALL HAVE BEEN ISSUED, THEN MORTGAGOR SHALL DEPOSIT WITH
LENDER A BOND OR OTHER SECURITY SATISFACTORY TO LENDER IN THE AMOUNT OF 150% OF
THE AMOUNT OF SUCH LIEN.
MORTGAGOR SHALL PAY THE DISPUTED AMOUNT AND ALL
INTEREST AND PENALTIES DUE IN RESPECT THEREOF ON OR BEFORE THE DATE ANY
ADJUDICATION OF THE VALIDITY OR AMOUNT THEREOF BECOMES FINAL AND, IN ANY EVENT,
NO LESS THAN THIRTY (30) DAYS PRIOR TO ANY FORECLOSURE SALE OF THE MORTGAGED
7
PROPERTY OR THE EXERCISE OF ANY OTHER REMEDY BY SUCH CLAIMANT AGAINST THE
MORTGAGED PROPERTY.
1.6
INSURANCE AND CONDEMNATION.
1.6.1.
HAZARD INSURANCE.
MORTGAGOR SHALL, AT ITS SOLE COST AND
EXPENSE, OBTAIN FOR, DELIVER TO, ASSIGN TO AND MAINTAIN FOR THE BENEFIT OF
LENDER, UNTIL MORTGAGOR'S LIABILITIES ARE PAID IN FULL, POLICIES OF HAZARD
INSURANCE, IN AN AMOUNT WHICH SHALL BE NOT LESS THAN 100% OF THE FULL INSURABLE
REPLACEMENT COST OF THE MORTGAGED PROPERTY (EXCEPT THE LAND), INSURING ON A
REPLACEMENT COST BASIS THE MORTGAGED PROPERTY WITH "CAUSES OF LOSS-SPECIAL FORM"
COVERAGE AND INSURING AGAINST SUCH OTHER HAZARDS, CASUALTIES AND CONTINGENCIES
AS LENDER MAY REQUIRE, INCLUDING WITHOUT LIMITATION, IF REQUESTED BY LENDER,
EARTHQUAKE, AND, IF ALL OR ANY PART OF THE MORTGAGED PROPERTY SHALL AT ANY TIME
BE LOCATED WITHIN AN AREA IDENTIFIED BY THE GOVERNMENT OF THE UNITED STATES OR
ANY AGENCY THEREOF AS HAVING SPECIAL FLOOD HAZARDS AND FOR WHICH FLOOD INSURANCE
IS AVAILABLE, FLOOD.
IF ANY SUCH POLICY SHALL CONTAIN A CO-INSURANCE CLAUSE IT
SHALL ALSO CONTAIN AN AGREED AMOUNT OR STIPULATED VALUE ENDORSEMENT.
ALL
POLICIES OF HAZARD INSURANCE SHALL CONTAIN A "LENDER'S LOSS PAYABLE" ENDORSEMENT
AND SHALL PROVIDE THAT NO LOSSES SHALL BE PAYABLE TO ANY OTHER PARTIES WITHOUT
LENDER'S PRIOR WRITTEN CONSENT.
THE FORM OF SUCH POLICIES, THE AMOUNTS AND THE
COMPANIES ISSUING THEM SHALL BE ACCEPTABLE TO LENDER.
ORIGINALS OR CERTIFIED
COPIES OF ALL POLICIES SHALL BE DELIVERED TO AND RETAINED BY LENDER.
MORTGAGOR
SHALL PAY ON OR BEFORE THE DUE DATES THEREOF PREMIUMS ON ALL INSURANCE POLICIES
AND ON ANY RENEWALS THEREOF.
IN THE EVENT OF LOSS, MORTGAGOR WILL GIVE
IMMEDIATE WRITTEN NOTICE TO LENDER AND LENDER MAY MAKE PROOF OF LOSS IF NOT MADE
PROMPTLY BY MORTGAGOR (FOR WHICH PURPOSE MORTGAGOR HEREBY IRREVOCABLY APPOINTS
LENDER AS ITS ATTORNEY-IN-FACT).
IN THE EVENT OF THE FORECLOSURE OF THIS
MORTGAGE OR ANY OTHER TRANSFER OF TITLE TO THE MORTGAGED PROPERTY IN FULL OR
PARTIAL SATISFACTION OF MORTGAGOR'S LIABILITIES, ALL RIGHT, TITLE AND INTEREST
OF MORTGAGOR IN AND TO ALL INSURANCE POLICIES AND RENEWALS THEREOF THEN IN FORCE
SHALL PASS TO THE PURCHASER OR GRANTEE.
ALL SUCH POLICIES SHALL PROVIDE THAT
THEY SHALL NOT BE MODIFIED, CANCELLED OR TERMINATED WITHOUT AT LEAST THIRTY (30)
DAYS' PRIOR WRITTEN NOTICE TO LENDER FROM THE INSURER.
1.6.2.
OTHER INSURANCE.
MORTGAGOR SHALL, AT ITS SOLE COST AND
EXPENSE, OBTAIN FOR, DELIVER TO, ASSIGN TO AND MAINTAIN FOR THE BENEFIT OF,
LENDER, UNTIL MORTGAGOR'S LIABILITIES ARE PAID FOR IN FULL, (I) COMMERCIAL
GENERAL LIABILITY INSURANCE