Hazard Insurance. Since the Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 2 contracts
Samples: Pledge and Security Agreement (Marriott Vacations Worldwide Corp), Sale Agreement (Marriott Vacations Worldwide Corp)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, the HECM Handbook and Agency Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the Holder under the Note and under this Mortgageimprovements that are a part of such property on a replacement cost basis. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead Flood Disaster Protection Act of being used to repair 1973, as amended. All such insurance policies (collectively, the “Hazard Insurance Policy”) contain a standard mortgagee clause naming Seller or to restore the damaged property. You give Subservicer, its successors and assigns (including without limitation, subsequent owners of the Holder your rights to those proceedsLoan), which will be paid to the Holderas mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums due and owing on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” Hazard Insurance Policy covering a condominium, or any Hazard Insurance Policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on Hazard Insurance Policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 2 contracts
Samples: Custodial Agreement (Walter Investment Management Corp), Master Repurchase Agreement (Walter Investment Management Corp)
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In applicable Agency Guides and in accordance with Guarantor’s underwriting guidelines and the event that the insurance policy you obtain contains provisionsAgency Guides, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too lowapplicable, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger of the following two amounts: Mortgaged Property and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2ii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected the Mortgaged Property or such maximum lesser amount as permitted by youthe applicable Agency Guides and applicable law, which companies shall be authorized to do business all in a form usual and customary in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are dueindustry. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming Guarantor, which will be paid to its successors and assigns (including, without limitation, subsequent owners of the HolderMortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days’ prior written notice to the mortgagee. No such notice has been received by Guarantor. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, a notice at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Holder stating Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance; provided that the policy is not a “master” or “blanket” hazard insurance company has offered to settle policy covering a claim for condominium, or any hazard insurance benefits, then policy covering the Holder has the authority to collect the proceedscommon facilities of a planned unit development. The Holder may then use hazard insurance policy is the proceeds to repair valid and binding obligation of the insurer and is in full force and effect. None of Seller, Guarantor or restore their respective Subsidiaries has engaged in, and has no knowledge of the damaged property Mortgagor’s having engaged in, any act or to reduce omission which would impair the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller, Guarantor or their respective Subsidiaries.
Appears in 2 contracts
Samples: Master Repurchase Agreement (Home Point Capital Inc.), Master Repurchase Agreement (Home Point Capital Inc.)
Hazard Insurance. Since the The Mortgaged Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers (including all buildings and improvements thereon) is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other improvements that now hazards as are or covered under a standard extended coverage endorsement and are customary in the future will be located area where the Mortgaged Property is located, in an amount not less than the project or in greatest of (i) 100% of the Unitreplacement cost of all improvements to the Mortgaged Property, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as (ii) the “master policy.” So long as outstanding principal balance of the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the UnitHELOC, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property. At origination of the HELOC, if any portion of the Mortgaged Property is in an area identified by any federal Governmental Entity as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the then-current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the HELOC (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. With respect to a HELOC secured by a condominium unit, it is included under the coverage afforded by a blanket policy for the project. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns, as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums due on such insurance policy prior to the related Closing Date have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by applicable state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect and will be in full force and effect and inure to the State benefit of Hawaiithe Purchaser upon the consummation of the transactions contemplated by this Agreement, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, liquidation, receivership, moratorium, reorganization or other similar laws relating to or affecting the enforcement of insurance policies and (ii) general principles of equity. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been received, then the Holder may do so. The amount paid retained or realized by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Associationattorney, the Condominium Association firm or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 2 contracts
Samples: Heloc Flow Purchase and Servicing Agreement (PennyMac Financial Services, Inc.), Heloc Flow Purchase and Servicing Agreement (PennyMac Mortgage Investment Trust)
Hazard Insurance. Since (a) Borrower shall continuously during the Property consiststerm of this Mortgage, keep the Improvements, Appurtenances, and Fixtures and Personal Property, now or hereafter existing, erected, installed and located in partor upon the Real Property, insured with all risk property damage (extended coverage all risk) insurance against loss or damage resulting from fire, windstorm, flood, sinkhole, earthquake, mine subsidence, certified acts of an interest in a unit in a condominium projectterrorism (provided, as well as an interest in a vacation ownership programhowever, Lender shall excuse Borrower from the Condominium Association and/or the Vacation Owners Association will typically obligation hereunder to maintain a hazard insurance policy which covers all buildings and other improvements that now are or against acts of terrorism if in the future will Borrower provides to Lender, evidence reasonably satisfactory to Lender that terrorism insurance is (i) not available at commercially reasonable rates, and (ii) not required by other lenders holding mortgage loans on similar properties in the same geographic area as the Real Estate), without a co-insurance provision, including, without limitation, such other types and amounts of insurance with respect to the Property and the operation thereof which are commonly maintained in the case of other properties and buildings similar to the Property in nature, use, location, height and type of construction, on such forms and with such deductibles as may be required by Lender, from time to time, in order to protect its interests, all to the extent generally required and with deductibles as are generally required with respect to properties located in the project or in the UnitCincinnati, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred Ohio similar to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover covering the Property in the amounts amount of the full replacement cost thereof (without taking into account any depreciation), and covering all loss or abatement of rental or other income, without a provision for co-insurance, in an amount equal to the scheduled rental income (including base rent, expense reimbursements and other income) from the Property for at least twelve (12) months, or if applicable, business interruption insurance in an amount sufficient to pay debt service on the Note, operating expenses, taxes, insurance and other required escrows for the periods Property for a period of twelve (12) months, and covering loss by flood (if at any time during the term of the Loan the Improvements are shown to lie wholly or partially within a Special Flood Hazard Area as designated on the Department of Housing and Urban Development's Maps, or any other flood prone area) in an amount equal to the outstanding principal balance of the Loan or such other amount as approved by Lender, and earthquake insurance with a deductible amount of no more than ten percent (10%) of the policy amount, if the Property is located within one-half (1/2) mile of an Xxxxxxx-Xxxxxx Special Earthquake Study Zone or if, in the reasonable judgment of Lender's inspecting architect, the Property lies in an area of anticipated significant seismic activity, and "Ordinance or Law Coverage" or "Enforcement" endorsements in amounts satisfactory to Lender if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses or the ability to rebuild the Improvements is restricted or prohibited, and comprehensive boiler and machinery insurance (without exclusion for explosion), if applicable, in amounts as shall be reasonably required by Lender and covering all boilers or other pressure vessels, machinery and equipment located at or about the Holder. In the event that the insurance policy you obtain contains provisionsProperty (including, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too lowwithout limitation, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note electrical equipment, sprinkler systems, heating and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirementsair conditioning equipment, refrigeration equipment and piping). All such insurance which you are required to obtain shall be carried underwritten with a company or companies selected by you, which companies shall be authorized licensed to do business in the State State, which is acceptable to Lender, which company or companies shall have and maintain a rating equivalent to at least A-:VIII as shown in the most recent Best's Key Rating Guide. Borrower shall provide Lender evidence reasonably satisfactory to Lender in Lender's sole discretion of Hawaiicommercial property insurance indicating that Lender is the mortgagee and lender’s loss payee under such policy in regard to the Property and showing the amount of coverage apportioned to the Property, and which coverage shall be in an amount sufficient to satisfy the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto requirements hereof. Each such policy of insurance shall contain a noncontributing loss payable clauses clause in favor of and in a form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the HolderLender, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will shall provide for not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within less than thirty (30) days, a notice from the Holder stating that the insurance company has offered days prior Written Notice to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount Lender of any intent to modify, non-renew, cancel or terminate the policy or policies, or the expiration of your monthly payments under such policies of insurance, or the Note and under Paragraph A exclusion of this Section V. You and the Holder may, however, agree in writing to those delays or changesany individual risk such as acts of terrorism. If the Holder acquires insurance required under this Section 8 or any portion thereof is maintained pursuant to a blanket policy, any such blanket policy shall provide the same protection as would a separate policy insuring only the Property under Paragraph P and shall be in compliance with this subsection 8(a), including compliance with the requirement that all carriers participating in such blanket policy shall have and maintain a rating of this Section V, all at least A-:VIII. Borrower shall furnish to Lender a copy of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before such endorsement and/or declaration page showing the Property is acquired by the Holder properly endorsed thereunder (or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, such other evidence as may be greater than the amount that you owe to the Holder agreed upon between Lender and Borrower under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or Loan Documents). Not later than the Program Documentsexpiration dates of each policy required of Borrower hereunder, Borrower will deliver to Lender evidence of renewal accompanied by other evidence of payment and renewal satisfactory to Lender. In the event of foreclosure of this Mortgage or other transfer of title to the Property in extinguishment of the Loan, all right, title and interest of Borrower in and to any rights to unearned premiums, and in and to insurance proceeds then that law payable from any prior covered claims or events under any insurance policies in force on or prior to the terms date of those documents will govern transfer, shall pass to the use of proceeds. You will promptly give the Holder notice if the master policy purchaser or the insurance policy you obtain is interrupted or terminatedgrantee.
Appears in 2 contracts
Samples: Open End Mortgage and Security Agreement (Hines Global Reit Ii, Inc.), Open End Mortgage and Security Agreement (Hines Global Reit Ii, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to FHA, VA, USDA and Xxxxxx Xxx (a “Qualified Insurer”), and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller, any prior owner or any Servicer, as applicable, as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Underlying Mortgage Loan, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an interest in area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) 100% of the amount that you owe replacement cost of all improvements to the Holder under the Note and under this Mortgage; or Mortgaged Property, (2) the outstanding principal balance of the Underlying Mortgage Loan, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Servicer, its successors and assigns (including, without limitation, subsequent owners of the Underlying Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youServicer. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business in so, authorizes the State of Hawaii, mortgagee to maintain such insurance at the Mortgagor’s cost and the Holder may require that the policies expense and renewals thereof be held to seek reimbursement therefor from such Mortgagor. Where required by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss state law or damage to the Property, you will promptly notify the Vacation Owners Associationregulation, the Condominium Association and Mortgagor has been given an opportunity to choose the Holdercarrier of the required hazard insurance, if a master provided the policy is obtained not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and maintained binding obligation of the insurer and is in full force and effect. Seller has not engaged in, nor has any knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 2 contracts
Samples: Master Repurchase Agreement (Rocket Companies, Inc.), Master Repurchase Agreement (Rocket Companies, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a generally acceptable insurance carrier, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by a Trust Subsidiary as of the date of acquisition, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the insurable value and (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming the applicable Trust Subsidiary, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating mortgagee. No such notice has been received by such Trust Subsidiary. All premiums that the have become due on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Neither Seller nor any Trust Subsidiary has engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller or any Trust Subsidiary.
Appears in 2 contracts
Samples: Master Repurchase Agreement (Altisource Residential Corp), Master Repurchase Agreement (Altisource Residential Corp)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Seller as of the event that date of origination consistent with the insurance policy you obtain contains provisionsGuidelines, known against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the lesser of (i) 100% of the replacement cost (as “calculated by a Qualified Insurer) of all improvements to the Mortgaged Property, and (ii) the outstanding principal balance of the Mortgage Loan, provided that, such amount shall be not less than the amount necessary to avoid the operation of any co-insurance requirements,” that limit provisions with respect to the insurance company’s obligation to pay claims if Mortgaged Property, and shall be consistent with the amount that would have been required as of coverage the date of origination in accordance with the Guidelines. If any portion of the Mortgaged Property is too lowin an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the Holder may require you to obtain current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 2 contracts
Samples: Master Repurchase Agreement (Pennymac Financial Services, Inc.), Master Repurchase Agreement (PennyMac Mortgage Investment Trust)
Hazard Insurance. Since Borrower shall keep the improvements now existing or hereafter erected on the Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering insured against loss or damage caused by fire, hazards normally covered included within the term “extended coverage”, and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by special form insurance policies and other hazardsthis Deed of Trust. Such a policy may This obligation shall be referred to as the “master policy.” So deemed satisfied so long as the master policy remains in effect Condominium and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Resort Owners Association does not Associations maintain a master policy covering “master” or “blanket” policies for liability and casualty insurance in accordance with the terms hereof. The insurance carrier providing the insurance shall be chosen by Borrower or the Condominium or property Resort Owners Association subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. If required, all premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof, or, if not paid in such manner, by Borrower or the Condominium and in the Unitor Resort Owners Association making payment, or such master policywhen due, in the Holder’s reasonable opinion, is not sufficient directly to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirementscarrier. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof shall be held by the Holder in a form acceptable to Lender and have attached thereto loss payable clauses shall include a standard mortgage clause in favor of and in a form acceptable to the HolderLender. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly Borrower shall give the Holder all receipts Lender prompt notice of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the any lapse in hazard insurance coverage. If you do not promptly prove In the event of loss, Borrower shall give prompt notice to the insurance company that carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Pursuant to the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use terms of the Project Documents timeshare declarations, insurance proceeds for that purpose would lessen the protection given shall be applied to the Holder by this Mortgage; restoration or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists damaged, whether the unit or the common elements. To the extent such insurance proceeds exceed the cost of an interest in a Unit in such restoration or repair and the Board of Directors of the Condominium and Programor Resort Owners Association decides to disburse such excess, it is possible that proceeds under the master policy will Borrower’s share of such excess shall be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid applied to the Holdersums secured by this Deed of Trust, and will be used to reduce with the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsexcess, if any, under the Note or this Mortgagepaid to Borrower. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the PropertyUnless Lender and Borrower otherwise agree in writing, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the any such application of proceeds to repair principal shall not exceed or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changessuch installments. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before paragraph 18 hereof the Property is acquired by the Holder or sold will belong Lender, all right, title and interest of Borrower in and to any insurance policies and in and to any excess insurance proceeds thereof from damage to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe Property prior to the Holder under sale or acquisition shall pass to Lender to the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms extent of the Condominium Documents and/or the Program Documents, then that law sums secured by this Deed of Trust immediately prior to such sale or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedacquisition.
Appears in 2 contracts
Samples: Pledge and Security Agreement (Marriott Vacations Worldwide Corp), Sale Agreement (Marriott Vacations Worldwide Corp)
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In applicable Approved Investor and in accordance with the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance companySeller’s obligation to pay claims if the amount of coverage is too lowunderwriting guidelines, the Holder may require you to obtain Buyer’s Correspondent Guidelines and the Agency Guides, as applicable, in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Approved Investor and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to have been paid under any such policy have been paid. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holderany Exh. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners AssociationL-5 such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Stonegate Mortgage Corp)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a generally acceptable insurance carrier, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by a Trust Subsidiary as of the date of acquisition, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the insurable value and (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming the applicable Trust Subsidiary, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating mortgagee. No such notice has been received by such Trust Subsidiary. All premiums that the have become due on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Neither Seller nor any Trust Subsidiary has engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by any Seller or any Trust Subsidiary.
Appears in 1 contract
Samples: Master Repurchase Agreement (Altisource Residential Corp)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Seller as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known as “co-insurance requirements,” that limit against earthquake and other risks insured against by Persons operating like properties in the insurance company’s obligation locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all improvements to pay claims if the amount Mortgaged Property, (ii) either (A) the outstanding principal balance of coverage is too lowthe Loan with respect to each First Lien Loan or (B) with respect to each Second Lien Loan, the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: outstanding principal balance of the First Lien Loan and the outstanding principal balance of the Second Lien Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (American Home Mortgage Investment Corp)
Hazard Insurance. Since the The Mortgaged Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers and all buildings and or other customarily insured improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a Qualified Insurer against loss or damage caused by fire, hazards normally covered by special form of extended coverage and such other hazards as are required in the Fxxxxx Mae Guides as well as all additional requirements set forth herein, pursuant to an insurance policies and other hazards. Such a policy may be referred conforming to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated of Customary Servicing Procedures and providing coverage in this Paragraph D, you are not required an amount equal to obtain and maintain separate hazard insurance the lesser of (i) the full insurable value of the Mortgaged Property or (ii) the outstanding principal balance owing on the Property. In Mortgage Loan, but in no event less than the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the minimum amount necessary to satisfy the co-insurance requirementsfully compensate for any damage or loss on a replacement cost basis. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the such insurance policies by paying are in full force and effect and contain a standard mortgagee clause naming the insurance company directly when originator of the premium payments are dueMortgage Loan, its successors and assigns as mortgagee and all premiums thereon have been paid. If the Holder requiresMortgaged Property is, you will promptly give or was at origination of the Holder all receipts Mortgage Loan, in an area identified on a flood hazard map or flood insurance rate map issued by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the requirements of paid premiums and all renewal notices that you receive. If there the current guidelines of the Federal Insurance Administration is a loss or damage in effect, which policy conforms to the requirements of Fxxxxx Mxx and was issued by a Qualified Insurer and provides coverage in the an amount equal to not less than the least of (i) the outstanding principal balance of the Mortgage Loan, (ii) the full insurable value of the Mortgaged Property, you will promptly notify and (iii) the Vacation Owners Associationmaximum amount of insurance that was available under the National Flood Insurance Act of 1968, as amended. The Mortgage obligates the Condominium Association Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense, and on the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required Mortgagor’s failure to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by , authorizes the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use holder of the proceeds for that purpose would lessen Mortgage to maintain such insurance at the protection given Mortgagor’s cost and expense and to seek reimbursement therefor from the Holder by this Mortgage; Mortgagor and may not be canceled, reduced or (c) the Holder and you have agreed in writing not to use the proceeds for that purposeterminated without 30 days’ prior notice. If the repair or restoration Mortgaged Property is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Programcondominium unit, it is possible that proceeds included under coverage afforded by a blanket policy for the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzproject.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Mortgage Loan Purchase and Servicing Agreement (Five Oaks Investment Corp.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a qualified insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the applicable Loan Program Authority against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) one hundred percent (100)% of the replacement cost of all improvements to the Mortgaged Property or (ii) such amount that would have been required as of the date of origination in accordance with the applicable Loan Program Authority. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (AmeriHome, Inc.)
Hazard Insurance. Since The improvements upon the Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located area where the Mortgaged Property is located, and to the extent required by the Seller or Qualified Originator as of the date of origination consistent with the Underwriting Guidelines in an amount not less than the project or in lesser of (i) the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as outstanding principal balance of the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policyrelated Mortgage Loan (together, in the Holder’s reasonable opinioncase of a Second Lien Mortgage Loan, with the outstanding principal balance of the First Lien), (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or, (iii) the full insurable value of the Mortgaged Property. If required by the Federal Emergency Management Agency, if any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier (unless the Underwriting Guidelines provide that such insurance is not sufficient to adequately protect Holder’s security interest in necessary if the Property, portion of the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Mortgaged Property in the amounts flood area is limited to the lot, and for does not include the periods location of time required by the Holder. In the event that the insurance policy you obtain contains provisionsany structures), known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsFlood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination, against risks commonly insured against by Persons owning like properties in the locality of the Mortgaged Property, in partan amount not less than the greatest of (i) 100% of the insurable value of the Mortgaged Property or (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974 unless such Property is a condominium. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming either of HawaiiSeller or Servicer, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days’ prior written notice to the mortgagee. No such notice has been received by Seller or Servicer, a notice from the Holder stating as applicable. All premiums on such insurance policy that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedshave become due have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair or restore maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the damaged property or mortgagee to reduce maintain such insurance at the amount that you owe Mortgagor’s cost and expense and to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedseek reimbursement therefore from such Mortgagor.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (Altisource Residential Corp)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Borrower as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known as “co-insurance requirements,” that limit against earthquake and other risks insured against by Persons operating like properties in the insurance company’s obligation to pay claims if locality of the amount of coverage is too lowMortgaged Property, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger of the following two amounts: Mortgaged Property, (1ii) the amount that you owe to the Holder under the Note and under this Mortgage; [reserved], or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental AuthorityBody as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) [reserved], (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor Customer to maintain all such insurance and, which companies shall be authorized at such Mortgagor Customer’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor Customer’s cost and expense and to seek reimbursement therefor from such Mortgagor Customer. Where required by state law or regulation, the Mortgagor Customer has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor Customer’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purposeBorrower. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Annex Two - 2
Appears in 1 contract
Samples: Credit and Security Agreement (Manhattan Bridge Capital, Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by you as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property with respect to First Lien Mortgage Loans, in partan amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the UnitMortgage Loan, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming you, your successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as Mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the Mortgagee. No such notice has been received by you. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the Mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. You have not engaged in, and have no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to retained or realized by you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Loan and Security Agreement (Firstplus Financial Group Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, and Agency Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the Holder under the Note and under this Mortgageimprovements that are a part of such property on a replacement cost basis. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead Flood Disaster Protection Act of being used to repair 1973, as amended. All such insurance policies (collectively, the “Hazard Insurance Policy”) contain a standard mortgagee clause naming Seller or to restore the damaged property. You give Subservicer, its successors and assigns (including without limitation, subsequent owners of the Holder your rights to those proceedsLoan), which will be paid to the Holderas mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums due and owing on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” Hazard Insurance Policy covering a condominium, or any Hazard Insurance Policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on Hazard Insurance Policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement (PennyMac Mortgage Investment Trust)
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation applicable Approved Investor and in accordance with (x) with respect to pay claims if the amount of coverage is too lowAgency Eligible Mortgage Loans, the Holder may require you Agency Guides and (y) with respect to obtain Jumbo Mortgage Loans, the underwriting or acquisition guidelines, as applicable, in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Approved Investor and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to have been paid under any such policy have been paid. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgageno such unlawful items have been received, retained or realized by Seller. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to youExh. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.L-5
Appears in 1 contract
Samples: Master Repurchase Agreement (Five Oaks Investment Corp.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a qualified insurer as defined by the applicable Loan Program Authority, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the applicable Loan Program Authority’s requirements, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount that would have been required as of the date of origination in accordance with the applicable Loan Program Authority’s requirements. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Purchased Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Purchased Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. Neither Seller nor Mortgagor has engaged in any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller. (f) Compliance with Applicable Laws. Any requirements of any federal, state or local law or regulation including, without limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the Holder under Purchased Mortgage Loan have been complied with, the Note and under this Mortgage. The thirty (30) day period will begin on consummation of the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use transactions contemplated hereby will not delay involve the due date or change the amount violation of any of your monthly payments under such laws or regulations, and Seller shall maintain or shall cause its agent to maintain in its possession, available for the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Schedule 1[-A]-2
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (loanDepot, Inc.)
Hazard Insurance. Since The improvements upon the Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located area where the Mortgaged Property is located, and to the extent required by the applicable Borrower as of the date of origination consistent with the Underwriting Guidelines in an amount not less than the project or in lesser of (i) the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as outstanding principal balance of the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policyrelated Mortgage Loan (together, in the Holder’s reasonable opinioncase of a Second Lien Mortgage Loan, with the outstanding principal balance of the First Lien), (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or, (iii) the full insurable value of the Mortgaged Property. If required by the Federal Emergency Management Agency, if any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier (unless the Underwriting Guidelines provide that such insurance is not sufficient to adequately protect Holder’s security interest in necessary if the Property, portion of the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Mortgaged Property in the amounts flood area is limited to the lot, and for does not include the periods location of time required by the Holder. In the event that the insurance policy you obtain contains provisionsany structures), known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsFlood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsBorrower.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Hazard Insurance. Since If any buildings now or hereafter constitute part of the Property consistsMortgaged Property, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, Mortgagor shall keep the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering same insured against loss or damage caused by fire, hazards normally covered by special form insurance policies fire and other hazardshazards included within the term "extended coverage," and against such other hazards as Mortgagee may require, in the full insurable value thereof (or such lesser amount as Mortgagee may authorize in writing) , with an insurer of high financial reputation and to which Mortgagee has no reasonable objection. Such The policy or policies of insurance shall contain a policy standard mortgagee clause, without contribution, in favor of Mortgagee, shall prohibit cancellation or substantial modification without at least thirty (30) days prior written notice to Mortgagee, shall contain a provision to the effect that any waiver of subrogation rights by the insured does not void the coverage, and shall be delivered to Mortgagee. Mortgagor shall pay all premiums and charges for the maintenance and renewal of the insurance, and shall furnish Mortgagee with receipts and proofs thereof not less than ten (10) days before the expiration thereof, without notice or demand from Mortgagee. if Mortxxxxx xxxls to do so, then Mortgagee, without waiving the option to foreclose, may be referred to as obtain such insurance for the “master policy.” So long as protection of Mortgagee, and any expenses reasonably incurred by Mortgagee in so doing shall become part of the master policy remains Liabilities, shall, at the option of Mortgagee, become immediately due and payable, and shall bear interest at the highest lawful rate specified in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Propertyany note evidencing any Liability. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Propertyof loss, the Holder insurance proceeds shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required be applied by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up Mortgagee to the larger reduction of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.the
Appears in 1 contract
Samples: Paxson Communications Corp
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a generally acceptable insurance carrier, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Trust Subsidiary as of the date of acquisition, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the insurable value and (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Trust Subsidiary, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating mortgagee. No such notice has been received by Trust Subsidiary. All premiums that the have become due on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Neither Seller nor Trust Subsidiary has engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller or Trust Subsidiary.
Appears in 1 contract
Samples: Master Repurchase Agreement (Altisource Residential Corp)
Hazard Insurance. Since The improvements upon the Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located area where the Mortgaged Property is located, and to the extent required by the applicable Borrower as of the date of origination consistent with the Underwriting Guidelines in an amount not less than the project or in lesser of (i) the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as outstanding principal balance of the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policyrelated Mortgage Loan (together, in the Holder’s reasonable opinioncase of a Second Lien Mortgage Loan, with the outstanding principal balance of the First Lien), (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or, (iii) the full insurable value of the Mortgaged Property. If any portion of the Mortgaged Property is not sufficient to adequately protect Holder’s security interest in the Propertyan area identified by any federal Governmental Authority as having special flood hazards, the Holder shall have the right to require you to obtain and maintain hazard flood insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the is available, a flood insurance policy you obtain contains provisionsmeeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsFlood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair retained or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if realized by any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In applicable Approved Investor and in accordance with the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance companySeller’s obligation to pay claims if the amount of coverage is too lowunderwriting guidelines, the Holder may require you to obtain Buyer’s Correspondent Guidelines and the Agency Guides, as applicable, in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Approved Investor and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to have been paid under any such policy have been paid. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Nationstar Mortgage Holdings Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by you as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property with respect to First Lien Mortgage Loans, in partan amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the UnitMortgage Loan, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the co-operation of any co- insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming you, your successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as Mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the Mortgagee. No such notice has been received by you. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the Mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. You have not engaged in, and have no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to retained or realized by you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Loan and Security Agreement (Firstplus Financial Group Inc)
Hazard Insurance. Since the The Mortgaged Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers and all buildings and or other customarily insured improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a Qualified Insurer against loss or damage caused by fire, hazards normally covered of extended coverage and such other hazards as are required by special form the Underwriting Guidelines as well as all additional requirements set forth herein, pursuant to an insurance policy conforming to the requirements of Accepted Servicing Practices and providing coverage in an amount equal to the lesser of (i) the full insurable value of the Mortgaged Property or (ii) the outstanding principal balance owing on the Mortgage Loan (or with respect to any Second Lien Mortgage Loan, the outstanding principal balance owing on the Mortgage Loan and the related First Lien Mortgage Loan), but in no event less than the minimum amount necessary to fully compensate for any damage or loss on a replacement cost basis. All such insurance policies are the valid and other binding obligation of the insurer are in full force and effect, inure to the benefit of the Buyer upon the consummation of the transactions contemplated by this Agreement and contain a standard mortgagee clause naming the originator of the Mortgage Loan, its successors and assigns as mortgagee and all premiums thereon have been paid. If the Mortgaged Property is, or was at origination of the Mortgage Loan, in an area identified on a flood hazard map or flood insurance rate map issued by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the applicable Requirements of Law, including the current guidelines of the Federal Insurance Administration, is in effect, which policy conforms to the Underwriting Guidelines and was issued by a Qualified Insurer and provides coverage in the an amount equal to not less than the least of (i) the outstanding principal balance of the Mortgage Loan (or with respect to any Second Lien Mortgage Loan, the outstanding principal balance of the Mortgage Loan and the related First Lien Mortgage Loan), (ii) the full insurable value of the Mortgaged Property, and (iii) the maximum amount of insurance that was available under applicable Requirements of Law including the National Flood Insurance Act of 1968, as amended. Such a policy may be referred The Mortgage obligates the Mortgagor thereunder to as maintain all such insurance at the “master policy.” So long as Mortgagor’s cost and expense, and on the master policy remains in effect and satisfies Mortgagor’s failure to do so, authorizes the requirements stated in this Paragraph D, you are not required holder of the Mortgage to obtain and maintain separate hazard such insurance on at the Property. In Mortgagor’s cost and expense and to seek reimbursement therefor from the event that the Condominium Association Mortgagor and may not be canceled, reduced or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are dueterminated without 30 days’ prior notice. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there Mortgaged Property is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Programcondominium unit, it is possible that proceeds included under coverage afforded by a blanket policy for the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzproject.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Angel Oak Mortgage, Inc.)
Hazard Insurance. Since the The Mortgaged Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers and all buildings and or other customarily insured improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a Qualified Insurer against loss or damage caused by fire, hazards normally covered by special form of extended coverage and such other hazards as are required in the Xxxxxx Mae Guides as well as all additional requirements set forth herein, pursuant to an insurance policies and other hazards. Such a policy may be referred conforming to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated of Customary Servicing Procedures and providing coverage in this Paragraph D, you are not required an amount equal to obtain and maintain separate hazard insurance the lesser of (i) the full insurable value of the Mortgaged Property or (ii) the outstanding principal balance owing on the Property. In Mortgage Loan, but in no event less than the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the minimum amount necessary to satisfy the co-insurance requirementsfully compensate for any damage or loss on a replacement cost basis. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the such insurance policies by paying are in full force and effect and contain a standard mortgagee clause naming the insurance company directly when originator of the premium payments are dueMortgage Loan, its successors and assigns as mortgagee and all premiums thereon have been paid. If the Holder requiresMortgaged Property is, you will promptly give or was at origination of the Holder all receipts Mortgage Loan, in an area identified on a flood hazard map or flood insurance rate map issued by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the requirements of paid premiums and all renewal notices that you receive. If there the current guidelines of the Federal Insurance Administration is a loss or damage in effect, which policy conforms to the requirements of Xxxxxx Xxx and was issued by a Qualified Insurer and provides coverage in the an amount equal to not less than the least of (i) the outstanding principal balance of the Mortgage Loan, (ii) the full insurable value of the Mortgaged Property, you will promptly notify and (iii) the Vacation Owners Associationmaximum amount of insurance that was available under the National Flood Insurance Act of 1968, as amended. The Mortgage obligates the Condominium Association Mortgagor thereunder to maintain all such insurance at the Mortgagor’s cost and expense, and on the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required Mortgagor’s failure to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by , authorizes the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use holder of the proceeds for that purpose would lessen Mortgage to maintain such insurance at the protection given Mortgagor’s cost and expense and to seek reimbursement therefor from the Holder by this Mortgage; Mortgagor and may not be canceled, reduced or (c) the Holder and you have agreed in writing not to use the proceeds for that purposeterminated without 30 days’ prior notice. If the repair or restoration Mortgaged Property is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Programcondominium unit, it is possible that proceeds included under coverage afforded by a blanket policy for the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzproject.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Seller as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known as “co-insurance requirements,” that limit against earthquake and other risks insured against by Persons operating like properties in the insurance company’s obligation to pay claims if locality of the amount of coverage is too lowMortgaged Property, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Loan with respect to each first lien Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (New York Mortgage Trust Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Guide, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than one hundred percent (100)% of the replacement cost of all improvements to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Guide. If any portion of the Mortgaged Property is in an interest in area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by, to the Holder under the Note best of Seller’s knowledge, any attorney, firm or other Person, and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed orno such unlawful items have been received, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date retained or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedSeller.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (Caliber Home Loans, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coveragebinding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller. If you do not promptly prove to the insurance company that the loss (g) Compliance with Applicable Laws. Any and all requirements of any federal, state or damage occurredlocal law including, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Associationwithout limitation, the Condominium Association usury, truth-in-lending, all applicable predatory and abusive lending, real estate settlement procedures, consumer credit protection, equal credit opportunity or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds disclosure laws applicable to the Property will be used to reduce origination and servicing of such Loan have been complied with, the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion consummation of the Property consists transactions contemplated hereby will not involve the violation of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair any such laws or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderregulations, and will be used Seller shall maintain or shall cause its agent to reduce Schedule 1-A-2 maintain in its possession, available for the amount that you owe inspection of Buyer, and shall deliver to the Holder under the Note and under this MortgageBuyer, upon two Business Days’ request, evidence of compliance with all such requirements. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.h)
Appears in 1 contract
Samples: Master Repurchase Agreement
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a generally acceptable insurance carrier, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Trust Subsidiary as of the date of acquisition, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the insurable value and (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Trust Subsidiary, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ' prior written notice from to the Holder stating mortgagee. No such notice has been received by Trust Subsidiary. All premiums that the have become due on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor's failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Neither Seller nor Trust Subsidiary has engaged in, if it is not mailedand has no knowledge of the Mortgagor's having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller or Trust Subsidiary.
Appears in 1 contract
Samples: Master Repurchase Agreement (Altisource Residential Corp)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located and to the extent consistent with the Underwriting Policy, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; Mortgage Loan or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe to would have been required as of the Holder under date of origination in accordance with the Note and under this MortgageUnderwriting Policy. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any Official Body as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Mortgage Loan and, with respect to any Second Lien Mortgage Loan, the outstanding principal balance of the related First Lien Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming the Originator, which will be paid to its successors and assigns (including, without limitation, subsequent owners of the HolderMortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that mortgagee. No such notice has been received by the Borrower or its Affiliates. All premiums due on such insurance company has offered policy prior to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedsdate of this representation have been paid. The Holder may then use related Mortgage obligates the proceeds Obligor to repair maintain all such insurance and, at such Obligor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Obligor’s cost and expense and to seek reimbursement therefor from such Obligor. Where required by state law or restore regulation, the damaged property Obligor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. The Borrower has not engaged in, if it is not mailedand has no knowledge of the Obligor’s having engaged in, on any act or omission that would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note endorsement provided for herein, or the validity and under Paragraph A binding effect of this Section V. You either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and the Holder mayno such unlawful items have been received, however, agree in writing to those delays retained or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedBorrower.
Appears in 1 contract
Hazard Insurance. Since The Mortgaged Property (other than Mortgaged Property subject to a Closed-End Second Lien Mortgage Loan) is covered by a policy of hazard insurance and insurance against other insurable risks and hazards as are customary in the area where the Mortgaged Property consists, is located in part, of an interest such amounts as required by the applicable Approved Investor and in a unit in a condominium projectaccordance with the Seller’s underwriting guidelines and the Agency Guides, as well applicable. With respect to Mortgaged Property subject to a Closed-End Second Lien Mortgage Loan, on the origination date, such Mortgaged Property was covered by a policy of hazard insurance and insurance against other insurable risks and hazards as an interest are customary in a vacation ownership programthe area where the Mortgaged Property is located in such amounts as required by the applicable Approved Investor and in accordance with the Seller’s underwriting guidelines and the Agency Guides, as applicable. If required by the Flood Disaster Protection Act of 1973, as amended, the Condominium Association and/or Mortgage Loan is covered by a flood insurance policy meeting the Vacation Owners Association will typically requirements of the current guidelines of the Federal Insurance Administration which policy conforms to Agency Guides. All such insurance policies (collectively, the “hazard insurance policy”) (other than hazard insurance policies relating to Closed-End Second Lien Mortgages) contain a standard mortgagee clause naming Guarantor, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee. With respect to such LEGAL02/42303142v3 insurance policies (other than insurance policies relating to Closed-End Second Lien Mortgages), (i) no notice of reduction, termination or cancellation has been received by any Seller Party and (ii) all premiums on such insurance policy have been paid. The related Mortgage (other than Closed-End Second Lien Mortgages) obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor (other than Mortgagors of Closed-End Second Lien Mortgages) has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy which covers all buildings and other improvements that now are covering a condominium, or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate any hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium common facilities of a planned unit development. The hazard insurance policy (other than any hazard insurance policy related to Closed-End Second Lien Mortgages) is in full force and effect and no Seller Party has engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or property in omission which would impair the Condominium and in the Unit, or coverage of any such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger benefits of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove binding effect of either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by any Seller Party, in any case to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if extent it would lessen the Holder’s protection impair coverage under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzsuch policy.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Rocket Companies, Inc.)
Hazard Insurance. Since Pursuant to the Property consiststerms of the Mortgage, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and or other improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a generally acceptable insurer against loss or damage caused by fire, hazards normally of extended coverage and such other hazards as are customary in the area where the Mortgaged Property is located, in an amount which is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan and (ii) the greater of (a) the outstanding principal balance of the Mortgage Loan and (b) an amount such that the proceeds thereof shall be sufficient to prevent the Mortgagor or the loss payee from becoming a co-insurer. If required by the National Flood Insurance Act of 1968, as amended, each Mortgage Loan is covered by special form a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration as in effect with a generally acceptable insurance carrier rated A:VI or better in Best’s in an amount representing coverage equal to the lesser of (i) the minimum amount required, under the terms of coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid balance of the mortgage if replacement cost coverage is not available for the type of building insured) and (ii) the maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973, as amended. All individual insurance policies contain a standard mortgagee clause naming either Sxxxxx and other hazardsits successors and assigns as mortgagee, and all premiums thereon have been paid and such policies may not be reduced, terminated or cancelled without 30 days’ prior written notice to the mortgagee. Such a The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance policy may be referred at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to as do so, authorizes the “master policy.” So long as holder of the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required Mortgage to obtain and maintain separate such insurance at such Mxxxxxxxx’s cost and expense, and to seek reimbursement therefor from the Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance on the Property. In the event that the Condominium Association policy covering a condominium, or the Vacation Owners Association does not maintain a master any hazard insurance policy covering the Condominium or property in common facilities of a planned unit development. The hazard insurance policy is the Condominium valid and in binding obligation of the Unit, or such master policy, in the Holder’s reasonable opinioninsurer, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain full force and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holdereffect, and will be used to reduce the amount that you owe in full force and effect and inure to the Holder under the Note and under this Mortgage. If any benefit of the proceeds remain after Trust upon the amount that you owe to consummation of the Holder transactions contemplated by this Agreement. The Sellers and the Originator have not engaged in and have no knowledge of the Mortgagor’s or Subservicer’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of such policy, including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been paid in full, the remaining proceeds or will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreceived, if anyretained or realized by any attorney, under the Note firm or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Propertyother person or entity, and no such unlawful items have been received, retained or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law Sellers or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Originator;
Appears in 1 contract
Samples: Transfer and Servicing Agreement (FBR Securitization, Inc.)
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In applicable Agency Guides and in accordance with the event that Applicable Underwriting Guidelines and the insurance policy you obtain contains provisionsAgency Guides, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too lowapplicable, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are provisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Agency Guides and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are duebeen paid under any such policy have been paid. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming Seller, which will be paid to its successors and assigns (including, without limitation, subsequent owners of the HolderMortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days’ prior written notice to the mortgagee. No such notice has been received by such Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, a notice at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Holder stating Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance; provided that the policy is not a “master” or “blanket” hazard insurance company has offered to settle policy covering a claim for condominium, or any hazard insurance benefits, then policy covering the Holder has the authority to collect the proceedscommon facilities of a planned unit development. The Holder may then use hazard insurance policy is the proceeds to repair valid and binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or restore omission which would impair the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by such Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement (Caliber Home Loans, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a generally acceptable insurance carrier, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Trust Subsidiary as of the date of acquisition, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the replacement cost of all improvements to the Mortgaged Property and (ii) the outstanding principal balance of the Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is reasonably available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the lesser of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note Mortgage Loan and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirementsrelated BPO price. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Trust Subsidiary, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating mortgagee. No such notice has been received by Trust Subsidiary. All premiums that the have become due on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Neither Seller nor Trust Subsidiary has engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller or Trust Subsidiary.
Appears in 1 contract
Samples: Master Repurchase Agreement (Starwood Waypoint Residential Trust)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Mortgage Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, or (iv) with respect to a GNMA EBO, the BPO Value, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Pennymac Financial Services, Inc.)
Hazard Insurance. Since All buildings or other customarily insured improvements on the Mortgaged Property consistsare insured by an insurer acceptable to prudent mortgage lending institutions against loss by fire and such hazards as are covered under a standard extended coverage endorsement and such other hazards as are provided for pursuant to insurance policies conforming to Accepted Practices, in partan amount which is not less than the lesser of 100% of the insurable value of the Mortgaged Property or the outstanding principal balance of the Mortgage Loan (plus, with respect to any Second Lien Mortgage Loan, the outstanding principal balance of an interest the related first lien mortgage loan, if any), but in a unit in no event less than the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property. If the Mortgaged Property is a condominium unit, it may be included under the coverage afforded by a blanket policy for the project. If the improvements on the Mortgaged Property are in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, then a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier. Such flood insurance policy is in an amount representing coverage not less than the least of (A) the outstanding principal balance of the Mortgage Loan, (B) the full insurable value of the related Mortgaged Property and (C) the maximum amount of insurance which was available under the Flood Disaster Protection Act of 1973, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form amended. All individual insurance policies contain a standard mortgagee clause naming the Seller and other hazardsits successors and assigns as mortgagee, and all premiums thereon have been paid and such policies have not been reduced, terminated or cancelled without thirty (30) calendar days’ written notice to the mortgagee. Such a policy may be referred No such notice has been received by the Seller. The Mortgage obligates the Mortgagor thereunder to as maintain all such insurance at the “master policy.” So long as Mortgagor’s cost and expense, and on the master policy remains in effect and satisfies Mortgagor’s failure to do so, authorizes the requirements stated in this Paragraph D, you are not required holder of the Mortgage to obtain and maintain separate such insurance at such Mortgagor’s cost and expense, and to seek reimbursement therefor from the Mortgagor, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in common facilities of a planned unit development. Each such insurance policy is the Condominium valid and in binding obligation of the Unit, or such master policy, in the Holder’s reasonable opinioninsurer, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain full force and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holdereffect, and will be used to reduce the amount that you owe in full force and effect and inure to the Holder under the Note and under this Mortgage. If any benefit of the proceeds remain after Purchaser upon the amount that you owe to consummation of the Holder has been paid in full, purchase of the remaining proceeds will be paid to youMortgage Loans as contemplated by this Agreement. The use of proceeds Seller has not acted or failed to reduce act so as to impair the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the such insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.validity, binding effect and enforceability thereof;
Appears in 1 contract
Samples: Distribution Instructions (MASTR Asset Backed Securities Trust 2006-Am1)
Hazard Insurance. Since Trustor shall keep the Property consistsand all Improvements now existing or hereafter erected on the Property insured at all times, in partby insurance carriers satisfactory to Beneficiary, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings against loss covered under “Owner’s Risk Insurance” and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies fire and such other hazards. Such a policy , casualties, liabilities and contingencies as Beneficiary shall reasonably require, which may be referred to include, among other things, flood, tornado or similar environmental damage, and in such amounts as specified below and for such periods as Beneficiary shall require, but in any event not less than an amount which will comply with any coinsurance clause and not less than 100% of the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on actual cash replacement value of the Property. In Trustor shall also obtain and provide Beneficiary with evidence of commercial general liability coverage (standard Insurance Services Office form(s) or equivalent, including blanket contractual liability coverage insuring indemnity liability) in a combined single limit amount of not less than $1,000,000.00, insuring against loss arising from or caused directly or indirectly by the event condition, use or ownership of the Property and any abutting streets, sidewalks and passageways, in amounts and issued by companies approved by Beneficiary, which liability policies shall name Beneficiary as an additional insured. The general liability coverage to be maintained by Trustor shall be primary and not excess over any other valid or collectible insurance available to Beneficiary and, to the extent required by any such policy (including any applicable “additional insured” terms), this provision constitutes a specific contractual requirement that such coverage be primary. All premiums on insurance policies shall be paid by Trustor making payment when due directly to the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unitcarrier, or in such master policy, other manner as Beneficiary may designate in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirementswriting. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof shall be held by the Holder in a form acceptable to Beneficiary and have attached thereto shall include a standard mortgagee loss payable clauses clause in favor of and in form acceptable to Beneficiary. Beneficiary shall have the Holder. You will pay right to hold copies of the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requirespolicies, you will and Trustor shall promptly give the Holder furnish to Beneficiary all renewal notices and all receipts of paid premiums on or before the expiration date of a policy, together with a copy of the renewal of such policy in form and all renewal notices that you receivecoverages as set forth above. If there is During the course of any construction or restoration of the Improvements, to the extent applicable, the following coverages shall also be required: comprehensive public liability insurance in the amount of not less than One Million Dollars ($1,000,000.00) on an “occurrence basis” against claims for personal injury including, without limitation, bodily injury, death, or property damage occurring on, in, or about the Property and the adjoining streets, sidewalks, and passageways, such insurance to afford immediate minimum protection to a loss limit satisfactory to Beneficiary with respect to personal injury or death to any one or more persons or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holderproperty; worker’s compensation insurance (including employer’s liability insurance, if a master policy requested by Beneficiary) for all employees of Trustor engaged on or with respect to the Property in such amount as is obtained satisfactory to Beneficiary, or, if such amounts are established by law, in such amounts; builder’s completed value risk insurance against “all risks of physical loss,” including collapse and maintained for transit coverage, during construction of the Condominium and/or Improvements, in non-reporting form, covering the Programtotal value of work performed and equipment, supplies, and materials furnished; and such other coverages that Beneficiary may require. In the event of any loss covered by any insurance policies in an amount of $100,000 or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove more, Trustor shall give immediate written notice to the insurance company carrier and to Beneficiary. Trustor hereby authorizes and empowers Beneficiary (at Beneficiary’s option if there then exists an uncured default under this Instrument) as attorney-in-fact for Trustor to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Beneficiary’s expenses incurred in the collection of such proceeds; provided, however, that the loss nothing contained in this paragraph shall require Beneficiary to incur any expense or damage occurredtake any action hereunder, and Beneficiary shall not have any liability resulting from its failure to take any such action, all claims with respect to any such liability being hereby waived by Trustor. If an Event of Default then the Holder may do so. The amount exists, all insurance proceeds shall be paid by the insurance company is called “proceeds.” The to Beneficiary to be held and disbursed in accordance with this Section 5. If an Event of Default then exists, Trustor further authorizes Beneficiary, and Beneficiary agrees, (a) to hold the balance of such proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must to be used to pay for the cost of reconstruction or repair or to restore of the damaged property unless: (a) it is not economically possible to make the repairs or restoration; Property, or (b) if the use proceeds are insufficient to repair or reconstruct the Improvements in the manner required by the next subparagraph, and if Trustor is unable or unwilling to personally fund the shortfall, to apply the balance of such proceeds to the payment of the proceeds for that purpose would lessen the protection given to the Holder sums secured by this Mortgage; Instrument, whether or not then due, in the order of application set forth in Section 3 hereof, or (c) if an Event of Default exists under this Instrument or any of the Holder and you have agreed in writing not Loan Documents, Beneficiary shall be entitled to use retain the proceeds for that purposeand apply the same in the order as provided in Section 3. If the insurance proceeds are initially held by Beneficiary and disbursed to Trustor or contractors for the cost of restoration and repair of all or restoration is not economically possible or if it would lessen any portion of the Holder’s protection under this MortgageProperty, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a damaged portion of the Property consists shall be restored to the equivalent of an interest its condition immediately prior to the loss or such other condition as Beneficiary may approve in a Unit in writing, provided that Beneficiary’s approved condition does not cost more to restore than would have been the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or cost to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid Property to the Holderequivalent of its condition immediately prior to the loss. Beneficiary may, at Beneficiary’s option, condition disbursement of said proceeds on Beneficiary’s approval of such plans and specifications of an architect satisfactory to Beneficiary, contractor’s cost estimates, architect’s certificate, waivers of liens, sworn statements of mechanics and materialmen and such other evidence of costs, percentage completion of construction, application of payments, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgagesatisfaction of liens as Beneficiary may reasonably require. If all or any portion of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong pursuant to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and Instrument, or if Beneficiary otherwise acquires title to the law or the terms Property (including without limitation through a conveyance in lieu of foreclosure), Beneficiary thereupon shall also be deemed to have acquired exclusively all of the Condominium Documents and/or right, title and interest of Trustor in and to any insurance policies and unearned premiums thereon and in and to any insurance proceeds resulting from or which may be payable as a consequence of any damage to the Program Documents, then that law Property prior to such sale or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedacquisition.
Appears in 1 contract
Hazard Insurance. Since the The Mortgaged Property consists, in part, is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in and for mortgage loans similar to the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form related Mortgage Loan (including a builder’s risk insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time where applicable) or as required by the Holder. In applicable Agency or Governmental Entity and in accordance with the event that Acquisition Guidelines and the insurance policy you obtain contains provisionsAgency Guides, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too lowapplicable, the Holder may require you to obtain in an amount not less than the greatest of coverage up to (i) the larger lesser of 100% of the following two amounts: insurable value of the Mortgaged Property and the outstanding principal balance of the Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2ii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are provisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Agency or Governmental Entity and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are duebeen paid under any such policy have been paid. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Mortgaged Property consists is in an area identified by the Federal Register by the Federal Emergency Management Agency as having special flood hazards and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming Xxxxxx and Xxxxxx’s successors and assigns (including, which will be paid to without limitation, subsequent owners of the HolderMortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Propertyterminated, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. Seller has not received any such notice. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, upon such Xxxxxxxxx’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property or Mortgagor has been given an opportunity to reduce choose the amount that you owe to carrier of the Holder under the Note and under this Mortgagerequired hazard insurance. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Xxxxxx has not engaged in, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount and has no knowledge of any Mortgagor having engaged in, any act or omission which would impair the coverage of your monthly payments under any such policy, the Note and under Paragraph A benefits of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither, then that law including, without limitation, no unlawful fee, commission, kickback, or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained, or the insurance policy you obtain is interrupted realized by any attorney, firm, or terminatedother Person, and no such unlawful items have been received, retained, or realized by Seller.
Appears in 1 contract
Hazard Insurance. Since Pursuant to the Property consiststerms of the Mortgage, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and or other improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a generally acceptable insurer against loss or damage caused by fire, hazards normally of extended coverage and such other hazards as are customary in the area where the Mortgaged Property is located, in an amount which is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such First NLC Mortgage Loan and (ii) the greater of (a) the outstanding principal balance of the First NLC Mortgage Loan and (b) an amount such that the proceeds thereof shall be sufficient to prevent the Mortgagor or the loss payee from becoming a co-insurer. If required by the National Flood Insurance Act of 1968, as amended, each First NLC Mortgage Loan is covered by special form a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration as in effect with a generally acceptable insurance carrier rated A:VI or better in Best's in an amount representing coverage equal to the lesser of (i) the minimum amount required, under the terms of coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid balance of the mortgage if replacement cost coverage is not available for the type of building insured) and (ii) the maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973, as amended. All individual insurance policies contain a standard mortgagee clause naming First NLC and other hazardsits successors and assigns as mortgagee, and all premiums thereon have been paid and such policies may not be reduced, terminated or cancelled without 30 days' prior written notice to the mortgagee. Such a The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance policy may be referred at the Mortgagor's cost and expense, and on the Mortgagor's failure to as do so, authorizes the “master policy.” So long as holder of the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required Mortgage to obtain and maintain separate such insurance at such Mortgagor's cost and expense, and to seek reimbursement therefor from the Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance on the Property. In the event that the Condominium Association policy covering a condominium, or the Vacation Owners Association does not maintain a master any hazard insurance policy covering the Condominium or property in common facilities of a planned unit development. The hazard insurance policy is the Condominium valid and in binding obligation of the Unit, or such master policy, in the Holder’s reasonable opinioninsurer, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain full force and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holdereffect, and will be used to reduce the amount that you owe in full force and effect and inure to the Holder under the Note and under this Mortgage. If any benefit of the proceeds remain after Purchaser upon the amount that you owe to consummation of the Holder transactions contemplated by this Agreement. The Seller has not engaged in, and has no knowledge of the Mortgagor's or any servicer's having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of such policy, including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been paid in full, the remaining proceeds or will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreceived, if anyretained or realized by any attorney, under the Note firm or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Propertyother person or entity, and no such unlawful items have been received, retained or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Seller;
Appears in 1 contract
Samples: Pooling and Servicing Agreement (GS Mortgage GSAMP Trust 2005-He1)
Hazard Insurance. Since The related Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to Buyer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note Mortgage Loan and under this Mortgage; or (2) the amount necessary to satisfy full insurable value of the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are dueMortgaged Property. If the Holder requiresMortgaged Property is a condominium unit, you will promptly give it is included under the Holder all receipts of paid premiums and all renewal notices that you receivecoverage afforded by a blanket policy for the project. If there any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a loss or damage flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to the Propertyextent such agreement is commercially available from the related insurer, you will promptly notify may not be reduced, terminated or canceled without [***] prior written notice to the Vacation Owners Associationmortgagee arising because of nonpayment of a premium and at least [***] prior written notice to the mortgagee arising for any reason other than nonpayment of a premium. No such notice has been received by Seller. All currently due premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Condominium Association and Mortgagor has been given an opportunity to choose the Holdercarrier of the required hazard insurance, if a master provided the policy is obtained not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. To Seller’s knowledge, the hazard insurance policy is the valid and maintained binding obligation of the insurer and is in full force and effect. No Seller has engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Finance of America Companies Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines and Agency Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of an interest in a unit in a condominium projectthe Loan with respect to each First Lien Loan, as well as an interest in a vacation ownership programor (B) with respect to each Alabama Second Lien Loan, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: (1) outstanding principal balance of the amount that you owe to First Lien Loan and the Holder under outstanding principal balance of the Note and under this Mortgage; Alabama Second Lien Loan or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the Holder under the Note and under this Mortgageimprovements that are a part of such property on a replacement cost basis. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, which policy conforms to the requirements of the FHA, if applicable, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead Flood Disaster Protection Act of being used to repair or to restore 1973, as amended. All such insurance policies (collectively, the damaged property. You give “Hazard Insurance Policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Holder your rights to those proceedsLoan), which will be paid to the Holderas mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums due and owing on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” Hazard Insurance Policy covering a condominium, or any Hazard Insurance Policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on Hazard Insurance Policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Confidential Treatment (Centex Land Vista Ridge Lewisville III General Partner, LLC)
Hazard Insurance. Since Pursuant to the terms of the Mortgage, all buildings or other improvements upon the Mortgaged Property consistsare insured by a fire and extended perils insurance policy, issued by an insurer acceptable to Fannie Mae or Freddie Mac, and such other hazards as are customary xx xxx xxxa whxxx xxx Mortgaged Property is located, and to the extent required by Seller as of the Origination Date consistent with the Acquisition Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have outstanding principal balance of the right Loan, but in any event at least equal to require you the amount necessary to obtain and maintain hazard insurance to cover avoid the Property in the amounts and for the periods operation of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “any co-insurance requirements,” that limit provisions with respect to the insurance company’s obligation to pay claims if Mortgaged Property, and consistent with the amount that would have been required as of coverage the Origination Date in accordance with Fannie Mae, Freddie Mac or the Acquisition Guidelines, or (iii) the xxxxxt necexxxxx xo fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is too lowin an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting the Holder may require you current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier and such policy conforms to obtain the requirements of Fannie Mae or Freddie Mac, in an amount of representing coverage up to not lxxx xxan the larger of the following two amounts: lxxxx xx (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsFlood Disaster Protection Act of 1973, as amended. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State "hazard insurance policy") contain a standard mortgagee clause naming the originator and its successors and assigns (including without limitation, subsequent owners of Hawaiithe Loan), as mortgagee, and the Holder may require that the policies all premiums due and renewals thereof be held by the Holder and owing thereon have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will and such policies may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within cancelled without thirty (30) days' prior written notice to the mortgagee. No such notice has been received by the Seller. The related Mortgage obligates the Mortgagor thereunder to maintain all such insurance policy at Mortgagor's cost and expense, a notice and on the Mortgagor's failure to do so, authorizes the mortgagee to obtain and maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from the Holder stating that Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance company has offered to settle policy covering the common facilities of a claim for insurance benefits, then the Holder has the authority to collect the proceedsplanned unit development. The Holder may then use hazard insurance policy is the proceeds valid and binding obligation of the insurer, is in full force and effect and will continue to repair or restore the damaged property or to reduce the amount that you owe be in full force and effect and inure to the Holder under benefit of Buyer upon the Note and under consummation of the transactions contemplated by this MortgageAgreement. The thirty (30) day period will begin on Seller has not engaged in, and has no knowledge of the date Mortgagor's or any subservicer's having engaged in, any act or omission which would impair the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note endorsement provided for therein, or the validity and under Paragraph A binding effect of this Section V. You either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and the Holder mayno such unlawful items have been received, however, agree in writing to those delays retained or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedSeller.
Appears in 1 contract
Samples: Master Repurchase Agreement (Chimera Investment Corp)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to FHA and Xxxxxx Xxx (a “Qualified Insurer”), and such other hazards as are customary in the area where the Mortgaged Property consistsis located in accordance with Accepted Servicing Practices, in partan amount not less than the lesser of (i) [***] of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Mortgage Loan, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an interest in area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain with a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policyQualified Insurer, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) [***] of the amount that you owe replacement cost of all improvements to the Holder under the Note and under this Mortgage; or Mortgaged Property, (2) the outstanding principal balance of the Mortgage Loan, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without [***] prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youany Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business in so, authorizes the State of Hawaii, mortgagee to maintain such insurance at the Mortgagor’s cost and the Holder may require that the policies expense and renewals thereof be held to seek reimbursement therefor from such Mortgagor. Where required by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss state law or damage to the Property, you will promptly notify the Vacation Owners Associationregulation, the Condominium Association and Mortgagor has been given an opportunity to choose the Holdercarrier of the required hazard insurance, if a master provided the policy is obtained not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and maintained binding obligation of the insurer and is in full force and effect. Seller has not engaged in, nor has any knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If no such unlawful items have been received, retained or realized by any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzSeller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Finance of America Companies Inc.)
Hazard Insurance. Since the Property consists, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a (i) Servicer shall cause to be maintained for each first lien Mortgage Loan fire and hazard insurance policy which covers all buildings and other improvements that now are or with extended coverage as is customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up which is at least equal to the larger lesser of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2A) the amount necessary to satisfy fully compensate for any damage or loss to the improvements which are a part of such property on a replacement cost basis or (B) the Unpaid Principal Balance of the Mortgage Loan and any mortgage loan senior to the Mortgage Loan, in each case in an amount not less than such amount as is necessary to prevent the Mortgagor and/or the Mortgagee from becoming a co-insurer. If the Mortgaged Property is in an area identified in the Federal Register by the Flood Emergency Management Agency as having special flood hazards and flood insurance requirementshas been made available, Servicer will cause to be maintained a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (X) the Unpaid Principal Balance of the Mortgage Loan and any mortgage loan senior to the Mortgage Loan, (Y) the maximum insurable value of the improvements securing such Mortgage Loan or (Z) the maximum amount of insurance which is available under the National Flood Insurance Act of 1968, as amended. Servicer shall also maintain on the REO Property for the benefit of the Owner, (1) fire and hazard insurance with extended coverage in an amount which is at least equal to the replacement cost of the improvements which are a part of such property, (2) public liability insurance and, (3) to the extent required and available under the National Flood Insurance Act of 1968, as amended, flood insurance in an amount as provided above. Any amounts collected by Servicer under any such policies other than amounts to be deposited in the Escrow Account and applied to the restoration or repair of the Mortgaged Property or REO Property, or released to the Mortgagor in accordance with Servicer's normal servicing procedures, shall be deposited in the Custodial Account, subject to withdrawal pursuant to the Standards. It is understood and agreed that no earthquake or other additional insurance is required to be maintained by Servicer or the Mortgagor or maintained on property acquired in respect of the Mortgage Loan, other than pursuant to such Applicable Requirements as shall at any time be in force and as shall require such additional insurance. All insurance which you are required to obtain such policies shall be carried endorsed with standard mortgagee clauses with loss payable to Servicer and shall provide for at least thirty (30) days prior written notice of any cancellation, reduction in the amount of or material change in coverage to Servicer. Servicer shall not interfere with the Mortgagor's freedom of choice in selecting either his insurance carrier or agent; provided, however, that Servicer shall not accept any such insurance policies from insurance companies selected by you, which unless such companies shall be authorized currently reflect a general policy rating of B:VI or better in Best's Key Rating Guide or are otherwise a Qualified Insurer and are licensed to do business in the State of Hawaii, and state wherein the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Mortgaged Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedlocated.
Appears in 1 contract
Samples: Flow Servicing Agreement (Altisource Residential Corp)
Hazard Insurance. Since Consistent with the Guidelines, the Mortgaged Property consistsis insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the least of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan with respect to each Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Caliber Home Loans, Inc.)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a generally acceptable insurance carrier, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Borrower as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known as “co-insurance requirements,” that limit against earthquake and other risks insured against by Persons operating like properties in the insurance company’s obligation to pay claims if locality of the amount of coverage is too lowMortgaged Property, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; Mortgage Loan, or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsBorrower.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Loan and Security Agreement (Aames Financial Corp/De)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Borrower as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) either (A) the outstanding principal balance of the Mortgage Loan with respect to each First Lien Mortgage Loan (as “co-insurance requirements,” that limit identified on the insurance company’s obligation Mortgage Loan Tape) or (B) with respect to pay claims if each Second Lien Mortgage Loan (as identified on the amount of coverage is too lowMortgage Loan Tape), the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: (1) outstanding principal balance of the amount that you owe to First Lien Mortgage Loan and the Holder under outstanding principal balance of the Note and under this Mortgage; Second Lien Mortgage Loan, or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsBorrower.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Loan and Security Agreement (Hanover Capital Mortgage Holdings Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the related Origination Date consistent with the Underwriting Guidelines, against other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the lesser of an interest in (i) the replacement value of the Mortgaged Property or (ii) the outstanding principal balance of the Purchased Mortgage Loan. If any portion of the Mortgaged Property (other than a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be Mortgaged Property located in the project or State of California) is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as current guidelines of the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to the extent such agreement is commercially available from the related insurer, may not be reduced, terminated or canceled without 30 days’ prior written notice to the mortgagee. No such notice has been received by Seller. Seller has not received notice that the required premiums on such insurance policy have not been paid. The related Mortgage obligates the Mortgagor to obtain shall be carried with companies selected by youmaintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (Sachem Capital Corp.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, is insured in an amount not less than 100% of the fair market value of all improvements to the Mortgaged Property. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsFlood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (PennyMac Mortgage Investment Trust)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to FHA and Xxxxxx Mae (a “Qualified Insurer”), and such other hazards as are customary in the area where the Mortgaged Property consistsis located in accordance with Accepted Servicing Practices, in partan amount not less than the lesser of (i) 100% of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Mortgage Loan, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an interest in area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain with a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policyQualified Insurer, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) 100% of the amount that you owe replacement cost of all improvements to the Holder under the Note and under this Mortgage; or Mortgaged Property, (2) the outstanding principal balance of the Mortgage Loan, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailednor has any knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement (Finance of America Companies Inc.)
Hazard Insurance. Since the The Mortgaged Property consists, in part, of an interest in is insured by a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard fire and extended perils insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering providing coverage against loss or damage caused sustained by reason of fire, hazards normally covered lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles and smoke, and, to the extent required as of the date of origination consistent with normal commercial mortgage lending practices, against other risks insured against by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property persons operating like properties in the Condominium and in locality of the Unit, or such master policyMortgaged Property, in an amount not less than the Holder’s reasonable opinion, is not sufficient amount necessary to adequately protect Holder’s security interest in avoid the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods operation of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “any co-insurance requirements,” that limit provisions with respect to the insurance company’s obligation to pay claims if Mortgaged Property, and consistent with the amount that would have been required as of coverage the date of origination by the Seller in its normal commercial mortgage lending activities with respect to similar properties in the same locality. If any portion of the Mortgaged Property is too lowin an area identified in the Federal Register by the Flood Emergency Management Agency as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the Holder may require you to obtain requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the such insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association(collectively, the Condominium Association "hazard insurance policy") contain a standard "New York" mortgagee clause naming the Seller, its successors and the Holderassigns (including without limitation, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use subsequent owners of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder Mortgage Loan), as mortgagee, are not terminable and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within reduced without thirty (30) days' prior written notice to the mortgagee. All premiums on such insurance policy have been paid. Such insurance policy requires prior notice to the insured of termination or cancellation, a and no such notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedsbeen received. The Holder may then use Mortgage obligates the proceeds mortgagor to repair maintain all such insurance and, at such mortgagor's failure to do so, authorizes the mortgagee to maintain such insurance at the mortgagor's cost and expense and to seek reimbursement therefor from such mortgagor. There have been no acts or restore omissions that would impair the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master such policy or the insurance policy you obtain is interrupted or terminated.benefits of the mortgage endorsement;
Appears in 1 contract
Samples: Master Repurchase Agreement (Hanover Capital Mortgage Holdings Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (A) the maximum amount allowed by law, and (B) the greatest of an interest in a unit in a condominium project(i) 100% of the replacement cost of all improvements to the Mortgaged Property, as well as an interest in a vacation ownership program, (ii) the Condominium Association and/or outstanding principal balance of the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the UnitMortgage Loan, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums heretofore due and payable on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Seller;
Appears in 1 contract
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines and Agency Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the Holder under the Note and under this Mortgageimprovements that are a part of such property on a replacement cost basis. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead Flood Disaster Protection Act of being used to repair 1973, as amended. All such insurance policies (collectively, the “Hazard Insurance Policy”) contain a standard mortgagee clause naming Seller or to restore the damaged property. You give Subservicer, its successors and assigns (including without limitation, subsequent owners of the Holder your rights to those proceedsLoan), which will be paid to the Holderas mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums due and owing on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” Hazard Insurance Policy covering a condominium, or any Hazard Insurance Policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on Hazard Insurance Policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement (Walter Investment Management Corp)
Hazard Insurance. Since Pursuant to the Property consiststerms of the Mortgage, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and or other improvements that now upon the Mortgaged Property are or in the future will be located in the project or in the Unit, covering insured by a generally acceptable insurer against loss or damage caused by fire, hazards normally of extended coverage and such other hazards as are customary in the area where the Mortgaged Property is located, in an amount which is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan and (ii) the greater of (a) the outstanding principal balance of the Mortgage Loan and (b) an amount such that the proceeds thereof shall be sufficient to prevent the Mortgagor or the loss payee from becoming a co-insurer. If required by the National Flood Insurance Act of 1968, as amended, each Mortgage Loan is covered by special form a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration as in effect with a generally acceptable insurance carrier rated A:VI or better in Best's in an amount representing coverage equal to the lesser of (i) the minimum amount required, under the terms of coverage, to compensate for any damage or loss on a replacement cost basis (or the unpaid balance of the mortgage if replacement cost coverage is not available for the type of building insured) and (ii) the maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973, as amended. All individual insurance policies contain a standard mortgagee clause naming the Seller and other hazardsits successors and assigns as mortgagee, and all premiums thereon have been paid and such policies may not be reduced, terminated or cancelled without 30 days' prior written notice to the mortgagee. Such a The Mortgage obligates the Mortgagor thereunder to maintain the hazard insurance policy may be referred at the Mortgagor's cost and expense, and on the Mortgagor's failure to as do so, authorizes the “master policy.” So long as holder of the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required Mortgage to obtain and maintain separate such insurance at such Mortgagor's cost and expense, and to seek reimbursement therefor from the Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance on the Property. In the event that the Condominium Association policy covering a condominium, or the Vacation Owners Association does not maintain a master any hazard insurance policy covering the Condominium or property in common facilities of a planned unit development. The hazard insurance policy is the Condominium valid and in binding obligation of the Unit, or such master policy, in the Holder’s reasonable opinioninsurer, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain full force and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holdereffect, and will be used to reduce the amount that you owe in full force and effect and inure to the Holder under the Note and under this Mortgage. If any benefit of the proceeds remain after Purchaser upon the amount that you owe to consummation of the Holder transactions contemplated by this Agreement. The Seller has not engaged in, and has no knowledge of the Mortgagor's or any servicer's having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for herein, or the validity and binding effect of such policy, including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been paid in full, the remaining proceeds or will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreceived, if anyretained or realized by any attorney, under the Note firm or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Propertyother person or entity, and no such unlawful items have been received, retained or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.Seller;
Appears in 1 contract
Samples: Pooling and Servicing Agreement (Gs Mortgage Securities Corp. Gsamp Trust 2004-He2)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by any Seller Party as of the date of origination consistent with the applicable Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the UnitUnderlying Mortgage Loan, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are required provisions with respect to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of HawaiiMortgaged Property, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce consistent with the amount that you owe to would have been required as of the Holder under date of origination in accordance with the Note and under this Mortgageapplicable Underwriting Guidelines. In addition, since a If any portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Underlying Mortgage Loan (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming Guarantor, which will be paid to its successors and assigns (including, without limitation, subsequent owners of the HolderUnderlying Mortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by any Seller Party. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. No Seller Party has engaged in, if it is not mailedand no Seller Party has knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminated.other Person, and no such unlawful items have been received, retained or realized by any Seller Party;
Appears in 1 contract
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Loan with respect to each Loan (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Hazard Insurance. Since Tenant agrees to maintain in full force from the Property consistsdate upon which Tenant first enters the Premises for any reason, throughout the Lease Term, and thereafter so long as Tenant is in occupancy of any part of the Premises, fire and extended coverage insurance in so called “special form” including flood (if applicable, Landlord acknowledging that flood is currently not applicable) and boiler and machinery (if applicable) and such other insurable hazards as, under good insurance practices are insured against by other tenants in similar premises. Covered property shall include but not be limited to (i) all fixtures, equipment and other personal property of Tenant (the “Tenant Property”) and (ii) any Alterations, including the initial Tenant Improvements (the “Tenant-Insured Improvements”). Landlord shall be designated as a loss payee with respect to Tenant’s property insurance on any Tenant-Insured Improvements (but not Tenant’s Property). Tenant shall be required to provide copies of its insurance policies to Landlord if reasonably requested by Landlord, and upon Landlord’s request, in part, of an interest in connection with a unit in a condominium project, as well claim actually made by Landlord as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are additional insured or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or payee under any such master policy, in the Holder’s reasonable opinion, Tenant shall deliver to Landlord such information as is not sufficient reasonably necessary for Landlord to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holderenforce such claim under such policy. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the The amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger insurance shall not be less than 100% of the following two amounts: (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2) the amount necessary to satisfy the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State replacement cost of Hawaiisuch property, and the Holder may require that policy shall contain a deductible amount of not more than $10,000. Tenant shall also purchase time element (business income/extra expense) coverage against the policies and renewals thereof be held perils insured by the Holder and have attached thereto loss payable clauses “all risk” including terrorism (so long as such terrorism insurance is available at commercially reasonable rates) property policy for a period of indemnity of twelve (12) months. Tenant shall also maintain insurance against such other hazards as may from time to time reasonably be required by Landlord, provided that such insurance is customarily carried in favor of and the area in form acceptable which the Premises are located on property similar to the Holder. You will pay the premiums on the Building and that Tenant receives written notice specifying all such additional insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder as may do so. The amount paid by the insurance company is called “proceedsbe required.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Lease Agreement (Invitae Corp)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and ---------------- extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Borrower as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) either (A) the outstanding principal balance of the Mortgage Loan with respect to each First Lien Mortgage Loan (as “co-insurance requirements,” that limit identified on the insurance company’s obligation Mortgage Loan Tape) or (B) with respect to pay claims if each Second Lien Mortgage Loan (as identified on the amount of coverage is too lowMortgage Loan Tape), the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: (1) outstanding principal balance of the amount that you owe to First Lien Mortgage Loan and the Holder under outstanding principal balance of the Note and under this Mortgage; Second Lien Mortgage Loan, or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsBorrower.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Loan and Security Agreement (Life Financial Corp)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Borrower as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all improvements to the Mortgaged Property, (ii) either (A) the outstanding principal balance of the Mortgage Loan with respect to each First Lien Mortgage Loan (as “co-insurance requirements,” that limit identified on the insurance company’s obligation Mortgage Loan Tape) or (B) with respect to pay claims if each Second Lien Mortgage Loan (as identified on the amount of coverage is too lowMortgage Loan Tape), the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: (1) outstanding principal balance of the amount that you owe to First Lien Mortgage Loan and the Holder under outstanding principal balance of the Note and under this Mortgage; Second Lien Mortgage Loan, or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the "hazard insurance policy") contain a standard mortgagee clause naming the Borrower, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days' prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Borrower. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor's failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor's cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a "master" or "blanket" hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Borrower has not engaged in, and has no knowledge of the Holder may require that Mortgagor's having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsBorrower.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Loan and Security Agreement (Hanover Capital Mortgage Holdings Inc)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the related Origination Date consistent with the Underwriting Guidelines, against other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) ****%) of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Purchased Mortgage Loan. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to obtain shall the extent such agreement is commercially available from the related insurer, may not be carried with companies selected reduced, terminated or canceled without 30 days’ prior written notice to the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mxxxxxxxx’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. No Seller has engaged in, and no Seller has knowledge of the Holder may require Mortgagor having engaged in, any act or omission that would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (Korth Direct Mortgage Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in part, an amount not less than the greatest of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, (i) 100% of the Condominium Association and/or replacement cost of all improvements to the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Mortgaged Property, (ii) the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount of coverage up to the larger outstanding principal balance of the following two amounts: Mortgage Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, or (iv) with respect to a GNMA EBO, the BPO Value, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youSeller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (PennyMac Financial Services, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to FHA, VA, USDA and Xxxxxx Xxx (a “Qualified Insurer”), and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller, any prior owner or any Servicer, as applicable, as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount not less than the lesser of (i) 100% of the replacement cost of all improvements to the Mortgaged Property or (ii) the outstanding principal balance of the Underlying Mortgage Loan, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an interest in area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) 100% of the amount that you owe replacement cost of all improvements to the Holder under the Note and under this Mortgage; or Mortgaged Property, (2) the outstanding principal balance of the Underlying Mortgage Loan, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Servicer, its successors and assigns (including, without limitation, subsequent owners of the Underlying Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youServicer. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business in so, authorizes the State of Hawaii, mortgagee to maintain such insurance at the Mortgagor’s cost and the Holder may require that the policies expense and renewals thereof be held to seek reimbursement therefor from such Mortgagor. Where required by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss state law or damage to the Property, you will promptly notify the Vacation Owners Associationregulation, the Condominium Association and Mortgagor has been given an opportunity to choose the Holdercarrier of the required hazard insurance, if a master provided the policy is obtained not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and maintained binding obligation of the insurer and is in full force and effect. Seller has not engaged in, nor has any knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgageno such unlawful items have been received, retained or realized by Seller. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to youSch. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 5158111-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.B-2
Appears in 1 contract
Samples: Master Repurchase Agreement (Rocket Companies, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a qualified insurer as defined by the applicable Loan Program Authority, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the applicable Loan Program Authority’s requirements, against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in partan amount that would have been required as of the date of origination in accordance with the applicable Loan Program Authority’s requirements. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, of an interest in and flood insurance is available, a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard flood insurance policy which covers all buildings and other improvements that now are or in meeting the future will be located in current guidelines of the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains Federal Emergency Management Agency is in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard with a generally acceptable insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policycarrier, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Purchased Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Purchased Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that the mortgagee. No such notice has been received by Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed or, if it is not mailed, on in full force and effect. Neither Seller nor Mortgagor has engaged in any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement and Securities Contract (loanDepot, Inc.)
Hazard Insurance. Since The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, and to the extent required by Seller as of the date of origination consistent with the Underwriting Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance which you are required to obtain shall be carried with companies selected by youpolicies (collectively, which companies shall be authorized to do business in the State “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including, without limitation, subsequent owners of Hawaiithe Mortgage Loan), as mortgagee, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days, a ’ prior written notice from to the Holder stating that mortgagee. No such notice has been received by the Seller. All premiums on such insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceedspolicy have been paid. The Holder may then use related Mortgage obligates the proceeds Mortgagor to repair maintain all such insurance and, at such Xxxxxxxxx’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or restore regulation, the damaged property Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or to reduce “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the amount that you owe to the Holder under the Note and under this Mortgagecommon facilities of a planned unit development. The thirty (30) day period will begin on hazard insurance policy is the date valid and binding obligation of the notice insurer and is mailed orin full force and effect. The Seller has not engaged in, if it is not mailedand has no knowledge of the Mortgagor’s having engaged in, on any act or omission which would impair the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note endorsement provided for herein, or the validity and under Paragraph A binding effect of this Section V. You either including, without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and the Holder mayno such unlawful items have been received, however, agree in writing to those delays retained or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired realized by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminatedSeller.
Appears in 1 contract
Hazard Insurance. Since The related Mortgaged Property is insured by a fire and extended perils insurance policy, issued by an insurer acceptable to Buyer, and such other hazards as are customary in the area where the Mortgaged Property consistsis located, in part, of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or in the future will be located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In the event that the insurance policy you obtain contains provisions, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too low, the Holder may require you to obtain an amount not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note Mortgage Loan and under this Mortgage; or (2) the amount necessary to satisfy full insurable value of the co-insurance requirements. All insurance which you are required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are dueMortgaged Property. If the Holder requiresMortgaged Property is a condominium unit, you will promptly give it is included under the Holder all receipts of paid premiums and all renewal notices that you receivecoverage afforded by a blanket policy for the project. If there any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a loss or damage flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1973. All such insurance policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and, to the Propertyextent such agreement is commercially available from the related insurer, you will promptly notify may not be reduced, terminated or canceled without 10 days’ prior written notice to the Vacation Owners Associationmortgagee arising because of nonpayment of a premium and at least 30 days’ prior written notice to the mortgagee arising for any reason other than nonpayment of a premium. No such notice has been received by Seller. All currently due premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Condominium Association and Mortgagor has been given an opportunity to choose the Holdercarrier of the required hazard insurance, if a master provided the policy is obtained not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. To Seller’s knowledge, the hazard insurance policy is the valid and maintained binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of the endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from other unlawful compensation or value of any insurance obtained by the Vacation Owners Association, the Condominium Association kind has been or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In additionreceived, since a portion of the Property consists of an interest in a Unit in the Condominium and Programretained or realized by any attorney, it is possible that proceeds under the master policy will be paid to you instead of being used to repair firm or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holderother Person, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has no such unlawful items have been paid in fullreceived, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note retained or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yzrealized by Seller.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Angel Oak Mortgage, Inc.)
Hazard Insurance. Since the Property consists, in part, The Mortgage Loan is covered by a policy of an interest in a unit in a condominium project, as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and insurance against other improvements that now insurable risks and hazards as are or customary in the future will be area where the Mortgaged Property is located in the project or in the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time required by the Holder. In applicable Agency Guides and in accordance with Guarantor’s underwriting guidelines and the event that the insurance policy you obtain contains provisionsAgency Guides, known as “co-insurance requirements,” that limit the insurance company’s obligation to pay claims if the amount of coverage is too lowapplicable, the Holder may require you to obtain in an amount not less than the greatest of coverage up (i) 100% of the replacement cost of all improvements to the larger Mortgaged Property, (ii) the outstanding principal balance of the following two amounts: Mortgage Loan, and (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirements. All insurance which you are provisions with respect to the Mortgaged Property or such maximum lesser amount as permitted by the applicable Agency Guides and applicable law, all in a form usual and customary in the industry and that is in full force and effect, and all amounts required to obtain shall be carried with companies selected by you, which companies shall be authorized to do business in the State of Hawaii, and the Holder may require that the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are duebeen paid under any such policy have been paid. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Association, the Condominium Association and the Holder, if a master policy is obtained and maintained for the Condominium and/or the Program, or the insurance company and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss or damage occurred, then the Holder may do so. The amount paid by the insurance company is called “proceeds.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Mortgaged Property consists is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an interest in a Unit in amount representing coverage not less than the Condominium least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged Property, and Program, it is possible that proceeds (3) the maximum amount of insurance available under the master policy will be paid to you instead National Flood Insurance Act of being used to repair or to restore 1968, as amended by the damaged propertyFlood Disaster Protection Act of 1974. You give All such insurance policies (collectively, the Holder your rights to those proceeds“hazard insurance policy”) contain a standard mortgagee clause naming Guarantor, which will be paid to its successors and assigns (including, without limitation, subsequent owners of the HolderMortgage Loan), as mortgagee, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will may not be a prepayment that is subject to the prepayment charge provisionsreduced, if any, under the Note terminated or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within canceled without thirty (30) days’ prior written notice to the mortgagee. No such notice has been received by the Guarantor. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, a notice at such Mortgagor’s failure to do so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Holder stating Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance; provided that the policy is not a “master” or “blanket” hazard insurance company has offered to settle policy covering a claim for condominium, or any hazard insurance benefits, then policy covering the Holder has the authority to collect the proceedscommon facilities of a planned unit development. The Holder may then use hazard insurance policy is the proceeds to repair valid and binding obligation of the insurer and is in full force and effect. Neither Seller nor any of its Affiliates has engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or restore omission which would impair the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount coverage of any such policy, the benefits of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder mayendorsement provided for herein, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms validity and binding effect of the Condominium Documents and/or the Program Documentseither including, then that law without limitation, no unlawful fee, commission, kickback or the terms other unlawful compensation or value of those documents any kind has been or will govern the use of proceeds. You will promptly give the Holder notice if the master policy be received, retained or the insurance policy you obtain is interrupted realized by any attorney, firm or terminatedother Person, and no such unlawful items have been received, retained or realized by such Seller.
Appears in 1 contract
Samples: Master Repurchase Agreement (Caliber Home Loans, Inc.)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Seller as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known against earthquake and other risks insured against by Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the lesser of (i) 100% of the replacement cost (as “calculated by a Qualified Insurer) of all improvements to the Mortgaged Property, and (ii) the outstanding principal balance of the Mortgage Loan, provided that, such amount shall be not less than the amount necessary to avoid the operation of any co-insurance requirements,” that limit provisions with respect to the insurance company’s obligation to pay claims if Mortgaged Property, and shall be consistent with the amount that would have been required as of coverage the date of origination in accordance with the Underwriting Guidelines. If any portion of the Mortgaged Property is too lowin an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the Holder may require you to obtain current guidelines of the Federal Emergency Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of coverage up to the larger of the following two amounts: (1) the amount that you owe to outstanding principal balance of the Holder under the Note and under this Mortgage; or Mortgage Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount necessary to satisfy of insurance available under the co-insurance requirementsNational Flood Insurance Act of 1968, as amended by the Flood Disaster Protection Act of 1974. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Pennymac Financial Services, Inc.)
Hazard Insurance. Since the The Mortgaged Property consistsis insured by a fire and extended perils insurance policy, in partissued by a Qualified Insurer, of an interest in a unit in a condominium project, and such other hazards as well as an interest in a vacation ownership program, the Condominium Association and/or the Vacation Owners Association will typically maintain a hazard insurance policy which covers all buildings and other improvements that now are or customary in the future will be located in area where the project or in Mortgaged Property is located, and to the Unit, covering loss or damage caused by fire, hazards normally covered by special form insurance policies and other hazards. Such a policy may be referred to as the “master policy.” So long as the master policy remains in effect and satisfies the requirements stated in this Paragraph D, you are not required to obtain and maintain separate hazard insurance on the Property. In the event that the Condominium Association or the Vacation Owners Association does not maintain a master policy covering the Condominium or property in the Condominium and in the Unit, or such master policy, in the Holder’s reasonable opinion, is not sufficient to adequately protect Holder’s security interest in the Property, the Holder shall have the right to require you to obtain and maintain hazard insurance to cover the Property in the amounts and for the periods of time extent required by the Holder. In Seller as of the event that date of origination consistent with the insurance policy you obtain contains provisionsUnderwriting Guidelines, known as “co-insurance requirements,” that limit against earthquake and other risks insured against by Persons operating like properties in the insurance company’s obligation locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all improvements to pay claims if the amount Mortgaged Property, (ii) either (A) the outstanding principal balance of coverage is too lowthe Loan with respect to each First Lien Loan or (B) with respect to each Second Lien Loan, the Holder may require you to obtain an amount of coverage up to the larger sum of the following two amounts: outstanding principal balance of the First Lien Loan and the outstanding principal balance of the Second Lien Loan, (1) the amount that you owe to the Holder under the Note and under this Mortgage; or (2iii) the amount necessary to satisfy avoid the operation of any co-insurance requirementsprovisions with respect to the Mortgaged Property, and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the improvements that are a part of such property on a replacement cost basis. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than the least of (1) the outstanding principal balance of the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance which you are required policies (collectively, the “hazard insurance policy”) contain a standard mortgagee clause naming the Seller, its successors and assigns (including without limitation, subsequent owners of the Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice to obtain shall be carried with companies selected the mortgagee. No such notice has been received by youthe Seller. All premiums due and owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to maintain all such insurance and, which companies shall be authorized at such Mortgagor’s failure to do business so, authorizes the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the valid and binding obligation of the insurer and is in the State of Hawaiifull force and effect. The Seller has not engaged in, and has no knowledge of the Holder may require that Mortgagor’s having engaged in, any act or omission which would impair the policies and renewals thereof be held by the Holder and have attached thereto loss payable clauses in favor coverage of and in form acceptable to the Holder. You will pay the premiums on the insurance policies by paying the insurance company directly when the premium payments are due. If the Holder requires, you will promptly give the Holder all receipts of paid premiums and all renewal notices that you receive. If there is a loss or damage to the Property, you will promptly notify the Vacation Owners Associationany such policy, the Condominium Association and benefits of the Holder, if a master policy is obtained and maintained endorsement provided for the Condominium and/or the Programherein, or the insurance company validity and the Holder if you are required to obtain the insurance coverage. If you do not promptly prove to the insurance company that the loss binding effect of either including, without limitation, no unlawful fee, commission, kickback or damage occurredother unlawful compensation or value of any kind has been or will be received, then the Holder may do so. The amount paid retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by the insurance company is called “proceedsSeller.” The proceeds from any insurance obtained by the Vacation Owners Association, the Condominium Association or you must be used to repair or to restore the damaged property unless: (a) it is not economically possible to make the repairs or restoration; or (b) the use of the proceeds for that purpose would lessen the protection given to the Holder by this Mortgage; or (c) the Holder and you have agreed in writing not to use the proceeds for that purpose. If the repair or restoration is not economically possible or if it would lessen the Holder’s protection under this Mortgage, then the proceeds applicable to the Property will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. In addition, since a portion of the Property consists of an interest in a Unit in the Condominium and Program, it is possible that proceeds under the master policy will be paid to you instead of being used to repair or to restore the damaged property. You give the Holder your rights to those proceeds, which will be paid to the Holder, and will be used to reduce the amount that you owe to the Holder under the Note and under this Mortgage. If any of the proceeds remain after the amount that you owe to the Holder has been paid in full, the remaining proceeds will be paid to you. The use of proceeds to reduce the amount that you owe to the Holder will not be a prepayment that is subject to the prepayment charge provisions, if any, under the Note or this Mortgage. 515811-3 03.18.10 5 «CFID» Printed: 9/29/2011 12:33:38 PM (kn.mort.yz.) v06072010 Loan «LOANID» If you abandon the Property, or if you do not answer, within thirty (30) days, a notice from the Holder stating that the insurance company has offered to settle a claim for insurance benefits, then the Holder has the authority to collect the proceeds. The Holder may then use the proceeds to repair or restore the damaged property or to reduce the amount that you owe to the Holder under the Note and under this Mortgage. The thirty (30) day period will begin on the date the notice is mailed or, if it is not mailed, on the date the notice is delivered. If any proceeds are used to reduce the amount of Principal which you owe to the Holder under the Note, that use will not delay the due date or change the amount of any of your monthly payments under the Note and under Paragraph A of this Section V. You and the Holder may, however, agree in writing to those delays or changes. If the Holder acquires the Property under Paragraph P of this Section V, all of your rights in the insurance policies will belong to the Holder. Also, all of your rights in any proceeds which are paid because of damage that occurred before the Property is acquired by the Holder or sold will belong to the Holder. The Holder’s rights in those proceeds will not, however, be greater than the amount that you owe to the Holder under the Note and under this Mortgage immediately before the Property is acquired by the Holder or sold. If there is a conflict concerning the use of proceeds between the terms of this Paragraph D and the law or the terms of the Condominium Documents and/or the Program Documents, then that law or the terms of those documents will govern the use of proceeds. You will promptly give the Holder notice if the master policy or the insurance policy you obtain is interrupted or terminated.
Appears in 1 contract
Samples: Master Repurchase Agreement (Aames Investment Corp)
