ANY INSURANCE POLICY REQUIRED TO BE CARRIED HEREUNDER
UNLESS SUCH POLICY IS REPLACED AS AFORESAID, OR MATERIALLY INCREASE THE PREMIUMS
ON ANY SUCH POLICY ABOVE THE NORMAL PREMIUM CHARGED FOR SUCH POLICY.
BORROWER
SHALL COOPERATE WITH LENDER IN OBTAINING FOR LENDER THE BENEFITS OF ANY
INSURANCE PROCEEDS LAWFULLY OR EQUITABLY PAYABLE TO LENDER IN CONNECTION WITH
THE TRANSACTION CONTEMPLATED HEREBY.
SECTION 3.06.
EVENT OF DEFAULT DURING RESTORATION.
NOTWITHSTANDING ANYTHING
TO THE CONTRARY CONTAINED IN THIS SECURITY INSTRUMENT INCLUDING, WITHOUT
LIMITATION, THE PROVISIONS OF THIS ARTICLE III, IF, AT THE TIME OF ANY CASUALTY
AFFECTING THE PROPERTY OR ANY PART THEREOF, OR AT ANY TIME DURING ANY WORK, OR
AT ANY TIME THAT LENDER IS HOLDING OR IS ENTITLED TO RECEIVE ANY INSURANCE
PROCEEDS PURSUANT TO THIS SECURITY INSTRUMENT, A DEFAULT EXISTS AND IS
CONTINUING (WHETHER OR NOT IT CONSTITUTES AN EVENT OF DEFAULT), LENDER SHALL
THEN HAVE NO OBLIGATION TO MAKE SUCH PROCEEDS AVAILABLE FOR WORK AND LENDER
SHALL HAVE THE RIGHT AND OPTION, TO BE EXERCISED IN ITS SOLE AND
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ABSOLUTE DISCRETION AND ELECTION, WITH RESPECT TO THE INSURANCE PROCEEDS, EITHER
TO RETAIN AND APPLY SUCH PROCEEDS IN REIMBURSEMENT FOR THE ACTUAL COSTS, FEES
AND EXPENSES INCURRED BY LENDER IN ACCORDANCE WITH THE TERMS HEREOF IN
CONNECTION WITH THE ADJUSTMENT OF THE LOSS AND ANY BALANCE TOWARD PAYMENT OF THE
DEBT IN SUCH PRIORITY AND PROPORTIONS AS LENDER, IN ITS SOLE DISCRETION, SHALL
DEEM PROPER, OR TOWARDS THE WORK, UPON SUCH TERMS AND CONDITIONS AS LENDER SHALL
DETERMINE, OR TO CURE AN EVENT OF DEFAULT, OR TO ANY ONE OR MORE OF THE
FOREGOING AS LENDER, IN ITS SOLE AND ABSOLUTE DISCRETION, MAY DETERMINE.
IF
LENDER SHALL RECEIVE AND RETAIN SUCH INSURANCE PROCEEDS, THE LIEN OF THIS
SECURITY INSTRUMENT SHALL BE REDUCED ONLY BY THE AMOUNT THEREOF RECEIVED, AFTER
REIMBURSEMENT TO LENDER OF EXPENSES OF COLLECTION, AND ACTUALLY APPLIED BY
LENDER IN REDUCTION OF THE PRINCIPAL SUM PAYABLE UNDER THE NOTE IN ACCORDANCE
WITH THE NOTE.
SECTION 3.07.
APPLICATION OF PROCEEDS TO DEBT REDUCTION.
(A) NO DAMAGE TO THE
PROPERTY, OR ANY PART THEREOF, BY FIRE OR OTHER CASUALTY WHATSOEVER, WHETHER
SUCH DAMAGE BE PARTIAL OR TOTAL, SHALL RELIEVE BORROWER FROM ITS LIABILITY TO
PAY IN FULL THE DEBT AND TO PERFORM ITS OBLIGATIONS UNDER THIS SECURITY
INSTRUMENT AND THE OTHER LOAN DOCUMENTS.
(B)
IF ANY INSURANCE PROCEEDS ARE APPLIED TO REDUCE THE DEBT, LENDER
SHALL APPLY THE SAME IN ACCORDANCE WITH THE PROVISIONS OF THE NOTE.
ARTICLE IV:
IMPOSITIONS
SECTION 4.01.
PAYMENT OF IMPOSITIONS, UTILITIES AND TAXES, ETC.
(A) BORROWER
SHALL PAY OR CAUSE TO BE PAID ALL IMPOSITIONS AND REMIT OR CAUSE TO BE REMITTED
ALL SAOT EXPENDITURES AT LEAST FIVE (5) DAYS PRIOR TO THE DATE UPON WHICH ANY
FINE, PENALTY, INTEREST OR COST FOR NONPAYMENT IS IMPOSED, AND FURNISH TO
LENDER, UPON REQUEST, RECEIPTED BILLS OF THE APPROPRIATE TAXING AUTHORITY OR
OTHER DOCUMENTATION REASONABLY SATISFACTORY TO LENDER EVIDENCING THE PAYMENT
THEREOF.
IF BORROWER SHALL FAIL TO PAY ANY IMPOSITION OR REMIT ANY SAOT