REMAINING BALANCE, IF ANY, OF THE NET PROCEEDS DEFICIENCY DEPOSITED WITH LENDER
AFTER THE RESTORATION CONSULTANT CERTIFIES TO LENDER THAT THE RESTORATION HAS
BEEN COMPLETED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 8.4(B), AND THE
RECEIPT BY LENDER OF EVIDENCE SATISFACTORY TO LENDER THAT ALL COSTS INCURRED IN
CONNECTION WITH THE RESTORATION HAVE BEEN PAID IN FULL, SHALL BE REMITTED BY
LENDER TO BORROWER, PROVIDED NO EVENT OF DEFAULT SHALL HAVE OCCURRED AND SHALL
BE CONTINUING UNDER THE NOTE, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.
(C)
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 8.4(B)(VII) MAY (X) BE RETAINED AND APPLIED BY
LENDER TOWARD THE PAYMENT OF THE DEBT WHETHER OR NOT THEN DUE AS AN INVOLUNTARY
PARTIAL PREPAYMENT THEREOF, OR, (Y) AT THE SOLE DISCRETION OF LENDER, THE SAME
MAY BE PAID, EITHER IN WHOLE OR IN PART, TO BORROWER FOR SUCH PURPOSES AND UPON
SUCH CONDITIONS AS LENDER SHALL DESIGNATE.
(D)
IN THE EVENT OF FORECLOSURE OF ANY MORTGAGE,
OR OTHER TRANSFER OF TITLE TO THE AFFECTED PROPERTY IN EXTINGUISHMENT IN WHOLE
OR IN PART OF THE DEBT, ALL RIGHT, TITLE AND INTEREST OF BORROWER IN AND TO THE
POLICIES THEN IN FORCE CONCERNING EACH PROPERTY AND ALL PROCEEDS PAYABLE
THEREUNDER SHALL THEREUPON VEST IN THE PURCHASER AT SUCH FORECLOSURE, LENDER OR
OTHER TRANSFEREE IN THE EVENT OF SUCH OTHER TRANSFER OF TITLE.
ARTICLE 9
RESERVE FUNDS
Section 9.1.
REQUIRED REPAIRS
(A)
BORROWER SHALL MAKE (OR CAUSE TO BE MADE)
THE REPAIRS AND IMPROVEMENTS SET FORTH ON SCHEDULE I AND AS MORE PARTICULARLY
DESCRIBED IN THE PHYSICAL CONDITIONS REPORT OR ANY ENVIRONMENTAL REPORT
DELIVERED IN CONNECTION WITH THE CLOSING OF THE LOAN PREPARED IN
91
CONNECTION WITH THE CLOSING OF THE LOAN (SUCH REPAIRS HEREINAFTER REFERRED TO AS
"REQUIRED REPAIRS").
BORROWER SHALL COMPLETE (OR CAUSE TO BE COMPLETED) THE
REQUIRED REPAIRS IN A GOOD AND WORKMANLIKE MANNER ON OR BEFORE THE DATE THAT IS
TWELVE (12) MONTHS FROM THE DATE HEREOF OR WITHIN SUCH OTHER TIME FRAME FOR
COMPLETION SPECIFICALLY SET FORTH ON SCHEDULE I.
(B)
BORROWER SHALL ESTABLISH ON THE DATE HEREOF
AN ELIGIBLE ACCOUNT WITH LENDER OR LENDER'S AGENT TO FUND THE REQUIRED REPAIRS
(THE "REQUIRED REPAIR ACCOUNT") INTO WHICH BORROWER SHALL DEPOSIT ON THE DATE
HEREOF THE AMOUNT OF $288,750.00, WHICH AMOUNT EQUALS 125% OF THE ESTIMATED COST
FOR THE COMPLETION OF THE REQUIRED REPAIRS.
AMOUNTS SO DEPOSITED SHALL
HEREINAFTER BE REFERRED TO AS THE "REQUIRED REPAIR FUNDS."
Section 9.2.
REPLACEMENTS
(A)
ON AN ONGOING BASIS THROUGHOUT THE TERM OF
THE LOAN, BORROWER SHALL MAKE (OR CAUSE TO BE MADE) CAPITAL REPAIRS,
REPLACEMENTS AND IMPROVEMENTS NECESSARY TO KEEP EACH PROPERTY IN GOOD ORDER AND
REPAIR AND IN A GOOD MARKETABLE CONDITION OR PREVENT DETERIORATION OF EACH
PROPERTY, INCLUDING, BUT NOT LIMITED TO, REPAIRS, REPLACEMENTS OF, OR ADDITIONS
TO FF&E AND THOSE REPAIRS, REPLACEMENTS AND IMPROVEMENTS MORE PARTICULARLY
DESCRIBED (I) IN ANY