Common use of Damage or Destruction of the Mortgaged Property Clause in Contracts

Damage or Destruction of the Mortgaged Property. The Mortgagor will give prompt notice of any damage to or destruction of the Mortgaged Property, and in case of loss covered by policies of insurance, the Mortgagor and the Mortgagee shall jointly settle and adjust any claim arising out of such policies and shall jointly collect and receipt for the proceeds payable therefrom, provided that the Mortgagor may itself adjust and collect for any losses arising out of a single occurrence not in excess of Fifty Thousand and no/100 Dollars ($50,000.00). 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, unless the same are applied to the restoration or repair of the Mortgaged Property in accordance with Section 13 hereof.

Damage or Destruction of the Mortgaged Property. The Mortgagor will shall 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, the Mortgagor and the insurance Mortgagee shall jointly is hereby authorized at its option to 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 Fifty Twenty-Five Thousand and no/100 Dollars ($50,000.0025,000.00). 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, unless without the same are applied application of any prepayment premium, or to the restoration or repair of the Mortgaged Property in accordance with Section 13 hereofProperty, the choice of application to be solely at the discretion of Mortgagee.