Damage or Destruction of the Mortgaged Property. Mortgagor shall give Mortgagee prompt notice of any damage to or destruction of the Mortgaged Property and in case of loss covered by policies of insurance Mortgagee is hereby authorized at its option to settle and adjust any claim arising out of such policies and collect and receipt for the proceeds payable therefrom, provided, that Mortgagor may itself adjust and collect for any losses arising out of a single occurrence aggregating not in excess of Twenty-Five Thousand Dollars ($25,000.00). Any expense incurred by Mortgagee in the adjustment and collection of insurance proceeds (including the cost of any independent appraisal of the loss or damage on behalf of Mortgagee) shall be reimbursed to Mortgagee first out of any proceeds. The proceeds or any part thereof shall be applied to reduction of the Indebtedness then most remotely to be paid, whether due or not, without the application of any prepayment premium, or to the restoration or repair of the Mortgaged Property, the choice of application to be solely at the discretion of Mortgagee.
Appears in 2 contracts
Samples: Mortgage and Security Agreement (Famous Daves of America Inc), Mortgage and Security Agreement (Famous Daves of America Inc)
Damage or Destruction of the Mortgaged Property. The Mortgagor shall will give Mortgagee prompt notice of any damage to or destruction of the Mortgaged Property Property, and in case of loss covered by policies of insurance insurance, the Mortgagor and the Mortgagee is hereby authorized at its option to shall jointly settle and adjust any claim arising out of such policies and shall jointly collect and receipt for the proceeds payable therefrom, provided, provided that the Mortgagor may itself adjust and collect for any losses arising out of a single occurrence aggregating not in excess of Twenty-Five Fifty Thousand and no/100 Dollars ($25,000.0050,000.00). Any expense incurred by the Mortgagee in the adjustment and collection of insurance proceeds (including the cost of any independent appraisal of the loss or damage on behalf of the Mortgagee) shall be reimbursed to the Mortgagee first out of any proceeds. The proceeds or any part thereof shall be applied to reduction of the Indebtedness then most remotely to be paid, whether due or not, without unless the application of any prepayment premium, or same are applied to the restoration or repair of the Mortgaged Property, the choice of application to be solely at the discretion of MortgageeProperty in accordance with Section 13 hereof.
Appears in 2 contracts
Samples: Combination Mortgage, Security Agreement, Fixture Filing and Assignment of Leases and Rents, Combination Mortgage, Security Agreement, Fixture Filing and Assignment of Leases and Rents (Wsi Industries, Inc.)