RECEIVE OUT OF THE AWARD INTEREST AT THE RATE OR RATES
PROVIDED HEREIN OR IN THE NOTE. IF THE PROPERTY OR ANY PORTION THEREOF IS TAKEN
BY ANY GOVERNMENTAL AUTHORITY, BORROWER SHALL, SUBJECT TO LEGAL REQUIREMENTS OF
ANY GOVERNMENTAL AUTHORITIES, PROMPTLY COMMENCE AND DILIGENTLY PROSECUTE THE
RESTORATION OF THE PROPERTY AND OTHERWISE COMPLY WITH THE PROVISIONS OF
SECTION 5.3. IF THE PROPERTY IS SOLD, THROUGH FORECLOSURE OR OTHERWISE, PRIOR TO
THE RECEIPT BY LENDER OF THE AWARD, LENDER SHALL HAVE THE RIGHT, WHETHER OR NOT
A DEFICIENCY JUDGMENT ON THE NOTE SHALL HAVE BEEN SOUGHT, RECOVERED OR DENIED,
TO RECEIVE THE AWARD, OR A PORTION THEREOF SUFFICIENT TO PAY THE OUTSTANDING
DEBT.
5.2.3
CASUALTY PROCEEDS.
NOTWITHSTANDING THE LAST SENTENCE OF
SECTION 5.1.1(A)(III) AND PROVIDED NO EVENT OF DEFAULT EXISTS HEREUNDER,
PROCEEDS RECEIVED BY LENDER ON ACCOUNT OF THE BUSINESS INTERRUPTION INSURANCE
SPECIFIED IN SUBSECTION 5.1.1(A)(III) ABOVE WITH RESPECT TO ANY CASUALTY SHALL
BE DEPOSITED BY LENDER DIRECTLY INTO THE DEPOSIT ACCOUNT (AS DEFINED IN THE CASH
MANAGEMENT AGREEMENT) TO BE USED TO PAY THE MONTHLY DEBT SERVICE PAYMENT AMOUNT
AS IT BECOMES DUE UNDER THE LOAN DOCUMENTS. PROVIDED NO EVENT OF DEFAULT EXISTS
AND LENDER REASONABLY DETERMINES THAT SUFFICIENT OTHER FUNDS WILL REMAIN
AVAILABLE FOR THE PAYMENT OF ALL OTHER AMOUNTS DUE UNDER THE LOAN DOCUMENTS, ALL
BUSINESS INTERRUPTION INSURANCE PROCEEDS REMAINING AFTER THE PAYMENT OF THE
MONTHLY DEBT SERVICE PAYMENT AMOUNT SHALL BE RELEASED TO MEZZANINE LENDER, IF A
MEZZANINE LOAN IS OUTSTANDING, OR TO BORROWER, IF NO MEZZANINE LOAN IS
OUTSTANDING. NOTWITHSTANDING THE FOREGOING, IF SUCH BUSINESS INTERRUPTION
INSURANCE PROCEEDS ARE PAID TO LENDER IN A LUMP SUM, THEN, PROVIDED NO EVENT OF
DEFAULT EXISTS, LENDER SHALL DISBURSE ON A MONTHLY BASIS (I) IF A MEZZANINE LOAN
IS OUTSTANDING, TO MEZZANINE LENDER, OR (II) IF NO MEZZANINE LOAN IS
OUTSTANDING, TO BORROWER, A PORTION OF SUCH PROCEEDS IN AN AMOUNT EQUAL TO THE
AMOUNT OF SUCH PROCEEDS WHICH REPRESENT THE RENTS FOR SUCH MONTH LESS THE
MONTHLY DEBT SERVICE PAYMENT AMOUNT DUE ON THE MONTHLY PAYMENT DATE IN SUCH
MONTH. ALL OTHER SUCH PROCEEDS SHALL BE HELD BY LENDER AND DISBURSED IN
ACCORDANCE WITH SECTION 5.3 HEREOF.
SECTION 5.3
DELIVERY OF NET PROCEEDS.
5.3.1
MINOR CASUALTY OR CONDEMNATION.
IF A CASUALTY OR CONDEMNATION HAS
OCCURRED TO THE PROPERTY AND THE NET PROCEEDS (LESS ANY BUSINESS INTERRUPTION
PROCEEDS) SHALL BE LESS THAN THE RESTORATION THRESHOLD AND THE COSTS OF
COMPLETING THE RESTORATION SHALL BE LESS THAN THE RESTORATION THRESHOLD, AND
PROVIDED NO EVENT OF DEFAULT SHALL HAVE OCCURRED AND REMAIN UNCURED, THE NET
PROCEEDS WILL BE DISBURSED BY LENDER TO BORROWER. PROMPTLY AFTER RECEIPT OF THE
NET PROCEEDS, SUBJECT TO LEGAL REQUIREMENTS OF ANY GOVERNMENTAL AUTHORITIES,
BORROWER SHALL COMMENCE AND SATISFACTORILY COMPLETE WITH DUE DILIGENCE THE
RESTORATION IN ACCORDANCE WITH THE TERMS OF THIS ARTICLE V. IF ANY NET PROCEEDS
(OTHER THAN BUSINESS INTERRUPTION INSURANCE PROCEEDS RELEASED TO BORROWER
PURSUANT TO SECTION 5.2.3) ARE RECEIVED BY BORROWER AND MAY BE RETAINED BY
BORROWER PURSUANT TO THE TERMS HEREOF, SUCH