Common use of Insurance Casualty and Condemnation Clause in Contracts

Insurance Casualty and Condemnation. 5.1 Mortgagor shall keep the Mortgaged Property and each and every part of it constantly insured as may be required from time to time by Mortgagee. 5.2 All of the insurance required herein is to be issued by companies reasonably satisfactory to Mortgagee and fully licensed in the State of Louisiana. Each policy shall contain a mortgagee clause providing that the carrier shall notify Mortgagee in writing at least 30 days in advance of any policy reduction, non-renewal or cancellation. Mortgagor shall keep all policies evidencing the insurance constantly assigned or payable to Mortgagee and have attached to each of the policies a non-contributory loss payable clause in favor of and in form acceptable to Mortgagee. On or before the Effective Date, Mortgagor shall deliver the original policies to Mortgagee; and Mortgagor shall deliver all renewal policies with satisfactory evidence of payment not less than 30 days in advance of the expiration date of the existing policy or policies. 5.3 If, for any reason whatsoever, Mortgagor fails to keep the Mortgaged Property or any part thereof insured as required by this Article 5, or to keep the policies required by this Article 5 assigned or payable as required hereby, or fails to deliver to Mortgagee the original policies of insurance and the renewals thereof, then Mortgagee, at its option, may have such insurance effected in such amounts and with such companies as it may deem appropriate and may pay the premiums therefor. All amounts advanced by Mortgagee for that purpose will constitute a part of the Obligations. All proceeds under any policies of insurance with respect to the Mortgaged Property shall be paid to Mortgagee. If, by reason of such insurance, Mortgagee receives any sums for any damage to or loss of the Mortgaged Property, or any part thereof, then, at the option of Mortgagee, and in such manner as Mortgagee may determine, such amounts may be (a) retained and applied by Mortgagee toward the payment of the Obligations or (b) paid over, either wholly or in part, and under such conditions as Mortgagee may determine, to Mortgagor to enable Mortgagor to repair or restore the Mortgaged Property or for any other purpose or object satisfactory to Mortgagee. 5.4 Mortgagor shall give immediate written notice of any casualty affecting the Mortgaged Property to the applicable insurance carrier and to Mortgagee. Mortgagor empowers Mortgagee, as attorney-in-fact for Mortgagor, to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from insurance policies, to collect and receive insurance proceeds and to deduct from proceeds Mortgagee’s expenses of collection. However, nothing contained in this section 5.4 shall require Mortgagee to incur any expense or take any action. Mortgagor further authorizes Mortgagee (a) to apply the balance of insurance proceeds to the payment of the Obligations secured by this Mortgage, or (b) to hold the balance of insurance proceeds to reimburse Mortgagor for the cost of reconstruction or repair of the Mortgaged Property. Regardless of whether insurance proceeds are disbursed to Mortgagor for the cost of restoration and repair of the Mortgaged Property, Mortgagor shall promptly restore the Mortgaged Property to substantially the same condition as existed before the casualty. If Mortgagee acquires title to the Mortgaged Property, Mortgagee shall have all of the right, title and interest of Mortgagor to any insurance policies, unearned premiums and insurance proceeds resulting from any prior damage to the Mortgaged Property. 5.5 Mortgagor shall promptly notify Mortgagee of the commencement of any condemnation proceedings affecting the Mortgaged Property or any part thereof. Mortgagor authorizes Mortgagee to appear in such proceedings and to participate with Mortgagor in the determination of any condemnation awards. Mortgagor hereby assigns to Mortgagee any and all awards that may be given or made in any proceedings by any legally constituted authority to condemn or expropriate the Mortgaged Property, or any part thereof, under power of eminent domain. If there is such a condemnation or expropriation, Mortgagee may, at its election, either pay the net proceeds thereof toward the payment of the Obligations or disburse the net proceeds thereof to Mortgagor. At its option, Mortgagee may condition disbursement of any condemnation or expropriation proceeds to Mortgagor on conditions comparable to those delineated in section 5.4 with respect to casualty.

Insurance Casualty and Condemnation. 5.1 Mortgagor shall keep the Mortgaged Property and each and every part of it constantly insured as may be required from time to time by Mortgagee. 5.2 All of the insurance required herein is to be issued by companies reasonably satisfactory to Mortgagee and fully licensed in the State of Louisiana. Each policy shall contain a mortgagee clause providing that the carrier shall notify Mortgagee in writing at least 30 days in advance of any policy reduction, non-renewal or cancellation. Mortgagor shall keep all policies evidencing the insurance constantly assigned or payable to Mortgagee and have attached to each of the policies a non-contributory loss payable clause in favor of and in form acceptable to Mortgagee. On or before the Effective Date, Mortgagor Xxxxxxxxx shall deliver the original policies to Mortgagee; and Mortgagor Xxxxxxxxx shall deliver all renewal policies with satisfactory evidence of payment not less than 30 days in advance of the expiration date of the existing policy or policies. 5.3 If, for any reason whatsoever, Mortgagor Xxxxxxxxx fails to keep the Mortgaged Property or any part thereof insured as required by this Article 5, or to keep the policies required by this Article 5 assigned or payable as required hereby, or fails to deliver to Mortgagee the original policies of insurance and the renewals thereof, then Mortgagee, at its option, may have such insurance effected in such amounts and with such companies as it may deem appropriate and may pay the premiums therefor. All amounts advanced by Mortgagee for that purpose will constitute a part of the Obligations. All proceeds under any policies of insurance with respect to the Mortgaged Property shall be paid to Mortgagee. If, by reason of such insurance, Mortgagee receives any sums for any damage to or loss of the Mortgaged Property, or any part thereof, then, at the option of Mortgagee, and in such manner as Mortgagee may determine, such amounts may be (a) retained and applied by Mortgagee toward the payment of the Obligations or (b) paid over, either wholly or in part, and under such conditions as Mortgagee may determine, to Mortgagor to enable Mortgagor to repair or restore the Mortgaged Property or for any other purpose or object satisfactory to Mortgagee. 5.4 Mortgagor shall give immediate written notice of any casualty affecting the Mortgaged Property to the applicable insurance carrier and to Mortgagee. Mortgagor empowers Mortgagee, as attorney-in-fact for MortgagorXxxxxxxxx, to make proof of loss, to adjust and compromise any claim under insurance policies, to appear in and prosecute any action arising from insurance policies, to collect and receive insurance proceeds and to deduct from proceeds Mortgagee’s expenses of collection. However, nothing contained in this section 5.4 shall require Mortgagee to incur any expense or take any action. Mortgagor Xxxxxxxxx further authorizes Mortgagee (a) to apply the balance of insurance proceeds to the payment of the Obligations secured by this Mortgage, or (b) to hold the balance of insurance proceeds to reimburse Mortgagor for the cost of reconstruction or repair of the Mortgaged Property. Regardless of whether insurance proceeds are disbursed to Mortgagor for the cost of restoration and repair of the Mortgaged Property, Mortgagor shall promptly restore the Mortgaged Property to substantially the same condition as existed before the casualty. If Mortgagee acquires title to the Mortgaged Property, Mortgagee shall have all of the right, title and interest of Mortgagor to any insurance policies, unearned premiums and insurance proceeds resulting from any prior damage to the Mortgaged Property. 5.5 Mortgagor shall promptly notify Mortgagee of the commencement of any condemnation proceedings affecting the Mortgaged Property or any part thereof. Mortgagor Xxxxxxxxx authorizes Mortgagee to appear in such proceedings and to participate with Mortgagor Xxxxxxxxx in the determination of any condemnation awards. Mortgagor hereby assigns to Mortgagee any and all awards that may be given or made in any proceedings by any legally constituted authority to condemn or expropriate the Mortgaged Property, or any part thereof, under power of eminent domain. If there is such a condemnation or expropriation, Mortgagee may, at its election, either pay the net proceeds thereof toward the payment of the Obligations or disburse the net proceeds thereof to Mortgagor. At its option, Mortgagee may condition disbursement of any condemnation or expropriation proceeds to Mortgagor on conditions comparable to those delineated in section 5.4 with respect to casualty.