ANY SUCH AWARDS, DAMAGES, INSURANCE PROCEEDS,
PAYMENTS OR OTHER COMPENSATION FROM THE PARTIES OR AUTHORITIES MAKING THE SAME,
TO APPEAR IN ANY PROCEEDINGS THEREFOR AND TO GIVE RECEIPTS THEREFORE.
BORROWER
COVENANTS AND AGREES TO NOTIFY LENDER WITHIN FIVE (5) BUSINESS DAYS OF THE
OCCURRENCE OF ANY EVENT THAT MAY RESULT IN PROPERTY PROCEEDS.
SUBJECT TO
APPLICABLE LAW, LENDER MAY (AT ITS DISCRETION) APPLY ALL OR ANY PORTION OF THE
PROPERTY PROCEEDS THAT IT RECEIVES TO ITS REASONABLE EXPENSES IN SETTLING,
PROSECUTING AND DEFENDING ANY CLAIM RELATED THERETO AND MAY APPLY THE BALANCE OF
THE PROPERTY PROCEEDS TO THE SECURED OBLIGATIONS IN ANY ORDER, AND/OR LENDER MAY
RELEASE ALL OR ANY PART OF THE PROPERTY PROCEEDS TO BORROWER UPON ANY CONDITIONS
LENDER MAY REASONABLY IMPOSE. LENDER MAY COMMENCE, APPEAR IN, DEFEND AND
PROSECUTE ANY ACTION RELATED TO THE PROPERTY PROCEEDS AND MAY ADJUST,
COMPROMISE, SETTLE AND COLLECT ALL PROPERTY PROCEEDS, PROVIDED THAT, PRIOR TO
THE OCCURRENCE OF AN EVENT OF DEFAULT, ANY ADJUSTMENT, COMPROMISE AND SETTLEMENT
SHALL ONLY BE WITH BORROWER'S REASONABLE CONSENT.
36
SECTION 9.2
DISBURSEMENT OF PROPERTY PROCEEDS.
NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN SECTION 9.1, IF THE LOSS OR DAMAGE DUE TO
A CASUALTY OR CONDEMNATION IS LESS THAN 25% OF THE OUTSTANDING LOAN BALANCE, AS
DETERMINED BY LENDER IN ITS REASONABLE DISCRETION, LENDER SHALL PERMIT PROPERTY
PROCEEDS HELD BY LENDER TO BE USED FOR REPAIR OR RESTORATION BUT MAY IMPOSE SUCH
CONDITIONS THEREON AS LENDER MAY DETERMINE TO BE APPROPRIATE, INCLUDING, WITHOUT
LIMITATION: (I) THAT NO EVENT OF DEFAULT EXISTS (AND NO EVENT HAS OCCURRED THAT
WITH THE GIVING OF NOTICE OR THE PASSAGE OF TIME (OR BOTH) WOULD CONSTITUTE AN
EVENT OF DEFAULT); (II) THE DEPOSIT WITH LENDER OF SUCH ADDITIONAL FUNDS WHICH
LENDER DETERMINES ARE NEEDED TO PAY ALL COSTS OF THE REPAIR OR RESTORATION;
(III) THE ESTABLISHMENT OF AN ARRANGEMENT FOR LIEN RELEASES AND DISBURSEMENT OF
FUNDS REASONABLY ACCEPTABLE TO LENDER; (IV) THE DELIVERY TO LENDER OF PLANS AND
SPECIFICATIONS FOR THE WORK, A CONTRACT FOR THE WORK SIGNED BY A CONTRACTOR
ACCEPTABLE TO LENDER, A COST BREAKDOWN FOR THE WORK AND A PAYMENT AND
PERFORMANCE BOND FOR THE WORK, ALL OF WHICH SHALL BE ACCEPTABLE TO LENDER; (V)
THE DELIVERY TO LENDER OF EVIDENCE REASONABLY ACCEPTABLE TO LENDER THAT THE
RECONSTRUCTION OF THE PROPERTY WILL BE COMPLETED AT LEAST SIX (6) MONTHS PRIOR
TO THE MATURITY DATE; (VI) EVIDENCE THAT, UPON COMPLETION OF THE WORK, THE SIZE,
QUALITY AND FUNCTIONALITY OF THE PROPERTY WILL BE AT LEAST AS GREAT AS THOSE
WHICH EXISTED IMMEDIATELY BEFORE THE DAMAGE OR CONDEMNATION OCCURRED; (VII) ALL
OF THE THEN EXECUTED APPROVED CONDOMINIUM CONTRACTS REMAIN IN FULL FORCE AND
EFFECT AND WILL REMAIN IN FULL FORCE AND EFFECT NOTWITHSTANDING ANY DELAYS
RESULTING FROM SUCH CASUALTY; (VIII) THE INITIAL CONDOMINIUM CLOSINGS HAVE NOT
OCCURRED; AND (IX) THE DELIVERY TO LENDER OF EVIDENCE REASONABLY ACCEPTABLE TO
LENDER (A) THAT AFTER COMPLETION OF THE WORK THE INCOME FROM THE PROPERTY WILL
BE SUFFICIENT TO PAY ALL EXPENSES FOR THE