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Page3of6 Minnesota Uniform Conveyancing Blanks Form 30.1.1
<br />6. Real Estate Truces and Assessments. Real estate taxes and installments of special assessments which are due and payable In
<br />the year In which this Contract Is dated shall be paid as follows:
<br />Taxes and Installments of special assessments, If any, due and payable In 2015 shall be prorated as of the date of closing.
<br />Taxes and Installments of special assessments payable In 2016 and thereafter shall be paid by Purchaser.
<br />Purchaser shall pay, before penalty accrues, all real estate taxes and Installments of special assessments assessed against the Property
<br />which are due and payable In all subsequent years. Seller warrants that the real estate taxes and Installments of special assessments which
<br />were due and payable In the years preceding the year In which this Contract is dated are paid In full. If the Property Is subject to a recorded
<br />declaration providing for assessments to be levied against the Property by any owners' association, Purchaser shall promptly pay, when due,
<br />all assessments Imposed by the owners' association or other governing body as required by the provisions of the declaration or-other related
<br />documents.
<br />7. Property Insurance.
<br />{a) Insured Risks and Amounts. Purchaser shall keep all bulldlngs, Improvements, and fixtures now or later located on or a part of
<br />the Property Insured against loss by fire, lightning and such other perils as are included In a standard "all-risk" endorsement, and
<br />against loss or damage by all other risks and hazards covered by a standard extended coverage Insurance policy, including, without
<br />llmltatlon, vandalism, malicious mischief, burglary, theft and, if applicable, steam b~ller explosion. Such Insurance shall be In an
<br />amount no less than the full replacement cost of the buildings, Improvements, and fixtures, without deduction for physical depreciation,
<br />If any of the buildings, Improvements, or fixtures are located In a federally designated flood prone area, and If flood insurance Is
<br />available for that area, Purchaser shall procure and maintain flood insurance In amounts reasonably satisfactory to Seller.
<br />{b) Other Terms, The Insurance policy shall contain a loss payable clause In favor of Seller which provides that Selle~s right to
<br />recover under the Insurance shall not be Impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otherwise be
<br />afforded all rights and privileges customarily provided a mortgagee under the so-called standard mortgage clause.
<br />{c) Notice of Damage. In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of
<br />such damage to Seller and the Insurance company. ·
<br />8. Damage to the Property.
<br />{a) Applicatlon of Insurance Proceeds. If the Property Is damaged by fire or other casualty, the Insurance proceeds paid on
<br />account of such damage shall be applied to payment of the amounts payable by Purchaser under this Contract, even If such amounts
<br />are not then due to be paid, unless Purchaser makes a permitted election described In the next paragraph. Such amounts shall be first
<br />applied to unpaid accrued Interest and next to the Installments to be paid as provided In this Contract in the Inverse order of their
<br />maturity. Such payment shall not postpone the due date of the installments to be paid pursuant to this Contract or change the amount
<br />of such Installments. The balance of insurance proceeds, if any, shall be the property of Purchaser.
<br />{b) Purchaser's Election to Rebuild. If Purchaser Is not In default under this Contract, or after curing any such default, and If the
<br />mortgagees In any prior mortgages and sellers In any prior contracts for deed do not require otherwise, Purchaser may elect to have
<br />that portion of such Insurance proceeds necessary to repair, replace, or restore the damaged Property {the "Repairs") deposited In
<br />escrow with a bank or title Insurance company qualified to do business In the State of Minnesota, or such other party as may be
<br />mutually agreeable to Seller and Purchaser. The electlon may only be made by written notice to Seller within sixty (60) days after the
<br />damage occurs. Also, the elecllon will only be permitted If the plans and specifications and contracts for the Repairs are approved by
<br />Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election Is made by Purchaser, Seller and
<br />Purchaser shall jointly deposit, when paid, such insurance proceeds Into such escrow. If such Insurance proceeds are Insufficient for
<br />the Repairs, Purchaser shall, before the commencement of the Repairs, deposit Into such escrow sufficient additional money to insure
<br />the full payment for the Repairs. Even If the Insurance proceeds are unavailable or are insufficient to pay the cost of the Repairs,
<br />Purchaser shall at all times be responsible to pay the full cost of the Repairs. All escrowed funds shall be disbursed by the escrowee in
<br />accordance with generally accepted sound construction disbursement procedures. The costs Incurred or to be Incurred on account of
<br />such escrow shall be deposited by Purchaser Into such escrow before the commencement of the Repairs. Purchaser shall complete
<br />the Repairs as soon as reasonably possible and In a good and workmanlike manner, and In any event the Repairs shall be completed
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