FOR
BORROWER, OR OF ANY TENANT OR OTHER OCCUPANT, OR FAILURE TO COMPLY WITH THE
PROVISIONS OF ANY POLICY, WHICH MIGHT OTHERWISE RESULT IN A FORFEITURE OF THE
INSURANCE OR ANY PART THEREOF, SHALL IN ANY WAY AFFECT THE VALIDITY OR
ENFORCEABILITY OF THE INSURANCE INSOFAR AS LENDER IS CONCERNED;
(II)
THE POLICY SHALL NOT BE MATERIALLY CHANGED (OTHER THAN TO
INCREASE THE COVERAGE PROVIDED THEREBY) OR CANCELED WITHOUT AT LEAST THIRTY (30)
DAYS' WRITTEN NOTICE TO LENDER AND ANY OTHER PARTY NAMED THEREIN AS AN
ADDITIONAL INSURED;
(III)
THE ISSUERS THEREOF SHALL GIVE WRITTEN NOTICE TO LENDER IF
THE POLICY HAS NOT BEEN RENEWED FIFTEEN (15) DAYS PRIOR TO ITS EXPIRATION; AND
(IV)
LENDER SHALL NOT BE LIABLE FOR ANY INSURANCE PREMIUMS THEREON
OR SUBJECT TO ANY ASSESSMENTS THEREUNDER.
(F)
IF AT ANY TIME LENDER IS NOT IN RECEIPT OF WRITTEN EVIDENCE THAT
ALL INSURANCE REQUIRED HEREUNDER IS IN FULL FORCE AND EFFECT, LENDER SHALL HAVE
THE RIGHT, AFTER TEN (10) BUSINESS DAYS WRITTEN NOTICE TO BORROWER, TO TAKE SUCH
ACTION AS LENDER DEEMS NECESSARY TO PROTECT ITS
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INTEREST IN THE PROPERTIES, INCLUDING, WITHOUT LIMITATION, THE OBTAINING OF SUCH
INSURANCE COVERAGE AS LENDER IN ITS SOLE DISCRETION DEEMS APPROPRIATE.
ALL
PREMIUMS INCURRED BY LENDER IN CONNECTION WITH SUCH ACTION OR IN OBTAINING SUCH
INSURANCE AND KEEPING IT IN EFFECT SHALL BE PAID BY BORROWER TO LENDER UPON
DEMAND AND, UNTIL PAID, SHALL BE SECURED BY THE MORTGAGES AND SHALL BEAR
INTEREST AT THE DEFAULT RATE.
IF BORROWER FAILS IN SO INSURING THE PROPERTIES
OR IN SO ASSIGNING AND DELIVERING THE POLICIES, LENDER MAY, AT ITS OPTION,
OBTAIN SUCH INSURANCE USING SUCH CARRIERS AND AGENCIES AS LENDER SHALL ELECT
FROM YEAR TO YEAR AND PAY THE PREMIUMS THEREFOR, AND BORROWER WILL REIMBURSE
LENDER FOR ANY PREMIUM SO PAID, WITH INTEREST THEREON AS STATED IN THE NOTE FROM
THE TIME OF PAYMENT, ON DEMAND, AND THE AMOUNT SO OWNING TO LENDER SHALL BE
SECURED BY THE MORTGAGES.
THE INSURANCE OBTAINED BY LENDER MAY, BUT NEED NOT,
PROTECT BORROWER'S INTEREST AND THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY
ANY CLAIM THAT BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST BORROWER IN
CONNECTION WITH THE PROPERTIES.
Section 6.2
Casualty.
If any Individual Property shall be damaged
or destroyed, in whole or in part, by fire or other casualty (a "Casualty"),
Borrower (a) shall give to Lender prompt notice of such damage reasonably
estimated by Borrower to cost more than One Hundred Thousand Dollars
($100,000.00) to repair, and (b) shall promptly commence and diligently
prosecute the completion of the Restoration of the Individual Property as nearly
as possible to the condition the Individual Property was in immediately prior to
such fire or other Casualty, with such alterations as may be reasonably approved
by Lender (a "Restoration") and otherwise in accordance with Section 6.4.
Borrower shall pay all costs of such Restoration whether or not such costs are
covered by insurance.
Lender may, but shall not be obligated to make proof