BE OF AT LEAST EQUAL VALUE AND
OF SUBSTANTIALLY THE SAME CHARACTER (AND TO HAVE THE SAME UTILITY) AS PRIOR TO
SUCH CONDEMNATION.
7.3.2
COLLECTION OF AWARD.
IF A CONDEMNATION OCCURS WHERE
THE AWARD OR PAYMENT IN RESPECT THEREOF (AN "AWARD") DOES NOT EXCEED $250,000 OR
WHICH RESULTS IN THE TAKING OF FIVE PERCENT (5%) OR LESS OF THE PROPERTY,
PROVIDED NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING, BORROWER MAY MAKE
ANY COMPROMISE, ADJUSTMENT OR SETTLEMENT IN CONNECTION WITH SUCH CONDEMNATION
WITH THE PRIOR CONSENT OF LENDER, NOT TO BE UNREASONABLY WITHHELD, PROVIDED SUCH
ADJUSTMENT IS CARRIED OUT IN A COMPETENT AND TIMELY MANNER, AND BORROWER IS
HEREBY AUTHORIZED TO COLLECT AND RECEIPT FOR THE AWARD.
IN THE EVENT OF A
CONDEMNATION WHERE THE AWARD IS IN EXCESS OF $250,000 OR WHICH RESULTS IN THE
TAKING OF MORE THAN FIVE PERCENT (5%) OF THE PROPERTY, LENDER IS HEREBY
IRREVOCABLY APPOINTED AS BORROWER'S ATTORNEY-IN-FACT, COUPLED WITH AN INTEREST,
WITH EXCLUSIVE POWER TO COLLECT, RECEIVE AND RETAIN SUCH AWARD AND TO MAKE ANY
COMPROMISE, ADJUSTMENT OR SETTLEMENT IN CONNECTION WITH SUCH CONDEMNATION WITH
THE PRIOR CONSENT OF BORROWER (UNLESS AN EVENT OF DEFAULT IS CONTINUING, IN
WHICH CASE, BORROWER'S PRIOR CONSENT SHALL NOT BE REQUIRED), NOT TO BE
UNREASONABLY WITHHELD (WHICH SHALL BE DEEMED CONSENTED TO IF BORROWER FAILS TO
RESPOND TO ANY REQUEST FOR CONSENT THEREFOR WITHIN 10 DAYS' OF REQUEST).
NOTWITHSTANDING ANY CONDEMNATION (OR ANY TRANSFER MADE IN LIEU OF OR IN
ANTICIPATION
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OF SUCH CONDEMNATION), BORROWER SHALL CONTINUE TO PAY THE DEBT AT THE TIME AND
IN THE MANNER PROVIDED FOR IN THE LOAN DOCUMENTS, AND THE DEBT SHALL NOT BE
REDUCED UNLESS AND UNTIL ANY AWARD SHALL HAVE BEEN ACTUALLY RECEIVED AND APPLIED
BY LENDER TO EXPENSES OF COLLECTING THE AWARD AND TO DISCHARGE OF THE DEBT.
LENDER SHALL NOT BE LIMITED TO THE INTEREST PAID ON THE AWARD BY THE CONDEMNING
AUTHORITY BUT SHALL BE ENTITLED TO RECEIVE OUT OF THE AWARD INTEREST AT THE RATE
OR RATES PROVIDED IN THE NOTE.
IF THE PROPERTY IS SOLD, THROUGH FORECLOSURE OR
OTHERWISE, PRIOR TO THE RECEIPT BY LENDER OF SUCH AWARD, LENDER SHALL HAVE THE
RIGHT, WHETHER OR NOT A DEFICIENCY JUDGMENT ON THE NOTE SHALL BE RECOVERABLE OR
SHALL HAVE BEEN SOUGHT, RECOVERED OR DENIED, TO RECEIVE ALL OR A PORTION OF THE
AWARD SUFFICIENT TO PAY THE DEBT.
BORROWER SHALL CAUSE ANY AWARD THAT IS
PAYABLE TO BORROWER TO BE PAID DIRECTLY TO LENDER.
LENDER SHALL HOLD SUCH AWARD
IN THE CASUALTY/CONDEMNATION SUBACCOUNT AND DISBURSE SUCH AWARD IN ACCORDANCE
WITH THE TERMS HEREOF.
7.4
APPLICATION OF PROCEEDS OR AWARD.
7.4.1
APPLICATION TO RESTORATION.
IF AN INSURED CASUALTY OR
CONDEMNATION OCCURS WHERE (I) THE LOSS IS IN AN AGGREGATE AMOUNT LESS THAN
TWENTY-FIVE PERCENT (25%) OF THE UNPAID PRINCIPAL, (II) IN THE REASONABLE
JUDGMENT OF LENDER, THE PROPERTY CAN BE RESTORED WITHIN NINE MONTHS AFTER ALL
APPLICABLE RESTORATION PERMITS HAVE BEEN OBTAINED, AND PRIOR TO SIX MONTHS
BEFORE THE STATED MATURITY DATE AND