MAKE DISBURSEMENTS OF THE NET
PROCEEDS MORE FREQUENTLY THAN ONCE EVERY CALENDAR MONTH.
(VI)
IF AT ANY TIME THE NET PROCEEDS OR THE UNDISBURSED BALANCE THEREOF
SHALL NOT, IN THE REASONABLE OPINION OF LENDER IN CONSULTATION WITH BORROWER AND
THE CASUALTY CONSULTANT, BE SUFFICIENT TO PAY IN FULL THE BALANCE OF THE COSTS
WHICH ARE ESTIMATED BY THE CASUALTY CONSULTANT TO BE INCURRED IN CONNECTION WITH
THE COMPLETION OF THE RESTORATION, BORROWER SHALL DEPOSIT THE DEFICIENCY (THE
"NET PROCEEDS DEFICIENCY") WITH LENDER BEFORE ANY FURTHER DISBURSEMENT OF THE
NET PROCEEDS SHALL BE MADE.
THE NET PROCEEDS DEFICIENCY DEPOSITED WITH LENDER
SHALL BE HELD BY LENDER 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 6.4(B) SHALL CONSTITUTE ADDITIONAL SECURITY FOR THE DEBT AND OTHER
OBLIGATIONS UNDER THE LOAN DOCUMENTS.
(VII)
THE EXCESS, IF ANY, OF THE NET PROCEEDS AND THE REMAINING BALANCE,
IF ANY, OF THE NET PROCEEDS DEFICIENCY DEPOSITED WITH LENDER AFTER THE CASUALTY
CONSULTANT CERTIFIES TO LENDER THAT THE RESTORATION HAS BEEN COMPLETED IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 6.4(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.
(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 6.4(B)(VII) MAY BE RETAINED AND APPLIED BY LENDER IN ACCORDANCE WITH
SECTION 2.4.2 TOWARD THE PAYMENT OF THE DEBT WHETHER OR NOT THEN DUE AND PAYABLE
IN SUCH ORDER, PRIORITY AND PROPORTIONS AS LENDER IN ITS SOLE DISCRETION SHALL
DEEM PROPER, OR, AT THE DISCRETION OF LENDER, THE SAME MAY BE PAID, EITHER IN
WHOLE OR IN PART, TO BORROWER FOR SUCH PURPOSES AS LENDER SHALL APPROVE, IN ITS
DISCRETION.
(D)
IN THE EVENT OF FORECLOSURE OF THE SECURITY INSTRUMENT, OR OTHER
TRANSFER OF TITLE TO THE PROPERTY IN EXTINGUISHMENT IN WHOLE OR IN PART OF THE
DEBT ALL RIGHT, TITLE AND INTEREST OF BORROWER IN AND TO THE POLICIES THAT ARE
NOT BLANKET POLICIES THEN IN FORCE CONCERNING THE PROPERTY AND ALL PROCEEDS
PAYABLE THEREUNDER SHALL THEREUPON VEST IN THE PURCHASER AT SUCH FORECLOSURE OR
LENDER OR OTHER TRANSFEREE IN THE EVENT OF SUCH OTHER TRANSFER OF TITLE.
155
ARTICLE VII.
RESERVE FUNDS
SECTION 7.1.
REQUIRED REPAIR AND REMEDIATION ACCOUNT.
7.1.1.
DEPOSITS. BORROWER SHALL PERFORM THE REPAIR AND REMEDIATION WORK AT
THE PROPERTY AS MORE PARTICULARLY SET FORTH ON SCHEDULE IX HERETO (SUCH WORK,
COLLECTIVELY, THE "REQUIRED REPAIRS AND REMEDIATION").
BORROWER SHALL COMPLETE
THE REQUIRED REPAIRS AND REMEDIATION ON OR BEFORE THE REQUIRED DEADLINE FOR EACH
ITEM AS SET FORTH ON SCHEDULE IX.
IT SHALL BE AN EVENT OF DEFAULT UNDER THIS
AGREEMENT IF (A) BORROWER DOES NOT COMPLETE