THIS SECTION 3.2) AND SHALL BE DISBURSED FOR
COSTS ACTUALLY INCURRED IN CONNECTION WITH THE RESTORATION ON THE SAME
CONDITIONS APPLICABLE TO THE DISBURSEMENT OF THE NET PROCEEDS, AND UNTIL SO
DISBURSED PURSUANT TO THIS SECTION 3.2 SHALL CONSTITUTE ADDITIONAL SECURITY FOR
THE LOANS AND OTHER OBLIGATIONS UNDER THE LOAN DOCUMENTS.
(G)
THE EXCESS, IF ANY, OF THE NET PROCEEDS AND THE REMAINING
BALANCE, IF ANY, OF THE NET PROCEEDS DEFICIENCY DEPOSITED WITH ADMINISTRATIVE
AGENT AFTER THE CASUALTY CONSULTANT CERTIFIES TO ADMINISTRATIVE AGENT THAT THE
RESTORATION HAS BEEN COMPLETED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION
3.2 AND THE RECEIPT BY ADMINISTRATIVE AGENT OF EVIDENCE REASONABLY SATISFACTORY
TO ADMINISTRATIVE AGENT THAT ALL COSTS INCURRED IN CONNECTION WITH THE
RESTORATION HAVE BEEN PAID IN FULL, SHALL BE REMITTED BY ADMINISTRATIVE AGENT TO
BORROWER, PROVIDED NO EVENT OF DEFAULT SHALL HAVE OCCURRED AND SHALL BE
CONTINUING.
WITHOUT LIMITATION OF THE FOREGOING, ANY REMAINING NET PROCEEDS
DEFICIENCY DEPOSITED WITH ADMINISTRATIVE AGENT PURSUANT THIS SECTION 3.2 SHALL
BE PROMPTLY RETURNED TO BORROWER AFTER THE INDEBTEDNESS HAS BEEN PAID IN FULL.
(3)
ALL NET PROCEEDS NOT REQUIRED (I) TO BE MADE AVAILABLE FOR THE
RESTORATION OR (II) TO BE RETURNED TO BORROWER AS EXCESS NET PROCEEDS PURSUANT
TO SECTION 3.2(2)(G) MAY BE RETAINED AND APPLIED BY ADMINISTRATIVE AGENT TOWARD
THE PAYMENT OF THE LOANS (WITHOUT ANY PREPAYMENT PREMIUM) WHETHER OR NOT THEN
DUE AND PAYABLE IN THE ORDER AND AMOUNTS PROVIDED FOR IN SECTION 11.4, OR, AT
THE SOLE AND ABSOLUTE DISCRETION OF ADMINISTRATIVE AGENT, THE SAME MAY BE PAID,
EITHER IN WHOLE OR IN PART, TO BORROWER FOR SUCH PURPOSES AS ADMINISTRATIVE
AGENT SHALL APPROVE, IN ITS SOLE AND ABSOLUTE DISCRETION.
IF ADMINISTRATIVE
AGENT SHALL BE ENTITLED TO APPLY EXCESS NET PROCEEDS TOWARD THE PAYMENT OF THE
LOANS, ADMINISTRATIVE AGENT SHALL NOT UNREASONABLY WITHHOLD ITS CONSENT TO ANY
REQUEST FROM BORROWER TO DELAY SUCH PAYMENT OF THE LOANS UNTIL THE EXPIRATION OF
A THEN EXISTING INTEREST PERIOD, PROVIDED THAT NO EVENT OF DEFAULT THEN EXISTS.
IF ADMINISTRATIVE AGENT SHALL RECEIVE AND RETAIN NET PROCEEDS, THE LIEN OF THE
MORTGAGE SHALL BE REDUCED ONLY BY THE AMOUNT THEREOF RECEIVED AND RETAINED BY
ADMINISTRATIVE AGENT AND ACTUALLY APPLIED BY ADMINISTRATIVE AGENT IN REDUCTION
OF THE LOANS.
(4)
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE
PROVISIONS OF THIS SECTION 3.2 ARE SUBJECT TO THE PROVISIONS OF THE CONDOMINIUM
DOCUMENTS GOVERNING APPLICATIONS OF INSURANCE PROCEEDS.
55
SECTION 3.3
CASUALTY AND CONDEMNATION.
(A)
IF THE PROJECT SHALL BE DAMAGED OR DESTROYED, IN WHOLE OR IN
PART, BY FIRE OR OTHER CASUALTY (A "CASUALTY"), BORROWER SHALL GIVE PROMPT
NOTICE OF SUCH DAMAGE TO ADMINISTRATIVE AGENT AND SHALL PROMPTLY COMMENCE AND
DILIGENTLY PROSECUTE THE COMPLETION OF THE RESTORATION OF THE PROJECT.
BORROWER
SHALL PAY ALL COSTS OF SUCH RESTORATION WHETHER OR NOT SUCH COSTS ARE COVERED BY
INSURANCE (PROVIDED THAT, IF NET PROCEEDS ARE REQUIRED TO BE MADE AVAILABLE TO
BORROWER FOR RESTORATION PURSUANT TO THE TERMS OF SECTION 3.2, THEY ARE MADE
AVAILABLE TO BORROWER FOR RESTORATION).