THE
CONDEMNATION PROCEEDS TO THE DEBT SHALL BE MADE IN ACCORDANCE WITH THE
PROVISIONS OF SECTIONS 3.06 AND 3.07 HEREOF.
NO APPLICATION OF THE CONDEMNATION
PROCEEDS TO THE REDUCTION OF THE DEBT SHALL HAVE THE EFFECT OF RELEASING THE
LIEN OF THIS SECURITY INSTRUMENT UNTIL THE REMAINDER OF THE DEBT HAS BEEN PAID
IN FULL.
IN THE CASE OF ANY TAKING, LENDER, TO THE EXTENT THAT LENDER HAS NOT
BEEN REIMBURSED BY BORROWER, SHALL BE ENTITLED,
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AS A FIRST PRIORITY OUT OF ANY CONDEMNATION PROCEEDS, TO REIMBURSEMENT FOR ALL
COSTS, FEES AND EXPENSES REASONABLY INCURRED IN THE DETERMINATION AND COLLECTION
OF ANY CONDEMNATION PROCEEDS.
ALL CONDEMNATION PROCEEDS DEPOSITED WITH LENDER
PURSUANT TO THIS SECTION, UNTIL EXPENDED OR APPLIED AS PROVIDED HEREIN, SHALL BE
HELD IN ACCORDANCE WITH SECTION 3.04(B) HEREOF AND SHALL CONSTITUTE ADDITIONAL
SECURITY FOR THE PAYMENT OF THE DEBT AND THE PAYMENT AND PERFORMANCE OF
BORROWER'S OBLIGATIONS, BUT LENDER SHALL NOT BE DEEMED A TRUSTEE OR OTHER
FIDUCIARY WITH RESPECT TO ITS RECEIPT OF SUCH CONDEMNATION PROCEEDS OR ANY PART
THEREOF.
ALL AWARDS SO DEPOSITED WITH LENDER SHALL BE HELD BY LENDER IN AN
ELIGIBLE ACCOUNT, BUT LENDER MAKES NO REPRESENTATION OR WARRANTY AS TO THE RATE
OR AMOUNT OF INTEREST, IF ANY, WHICH MAY ACCRUE ON ANY SUCH DEPOSIT AND SHALL
HAVE NO LIABILITY IN CONNECTION THEREWITH OTHER THAN WITH RESPECT TO LENDER'S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
FOR PURPOSES HEREOF, ANY REFERENCE TO
THE AWARD SHALL BE DEEMED TO INCLUDE INTEREST, IF ANY, WHICH HAS ACCRUED
THEREON.
ARTICLE VII:
LEASES AND RENTS
SECTION 7.01.
ASSIGNMENT.
(A) BORROWER DOES HEREBY BARGAIN, SELL, ASSIGN AND
SET OVER UNTO LENDER, ALL OF BORROWER'S INTEREST IN THE LEASES AND RENTS.
THE
ASSIGNMENT OF LEASES AND RENTS IN THIS SECTION 7.01 IS AN ABSOLUTE,
UNCONDITIONAL AND PRESENT ASSIGNMENT FROM BORROWER TO LENDER AND NOT AN
ASSIGNMENT FOR SECURITY AND THE EXISTENCE OR EXERCISE OF BORROWER'S REVOCABLE
LICENSE TO COLLECT RENT SHALL NOT OPERATE TO SUBORDINATE THIS ASSIGNMENT TO ANY
SUBSEQUENT ASSIGNMENT.
THE EXERCISE BY LENDER OF ANY OF ITS RIGHTS OR REMEDIES
PURSUANT TO THIS SECTION 7.01 SHALL NOT BE DEEMED TO MAKE LENDER A
MORTGAGEE-IN-POSSESSION.
IN ADDITION TO THE PROVISIONS OF THIS ARTICLE VII,
BORROWER SHALL COMPLY WITH ALL TERMS, PROVISIONS AND CONDITIONS OF THE
ASSIGNMENT.
(B)
SO LONG AS THERE SHALL EXIST AND BE CONTINUING NO EVENT OF
DEFAULT, BORROWER SHALL HAVE A REVOCABLE LICENSE TO TAKE ALL ACTIONS WITH
RESPECT TO ALL LEASES AND RENTS, PRESENT AND FUTURE, INCLUDING THE RIGHT TO
COLLECT AND USE THE RENTS, SUBJECT TO THE TERMS OF THIS SECURITY INSTRUMENT AND
THE ASSIGNMENT.
(C)
IN A SEPARATE INSTRUMENT BORROWER SHALL, AS REQUESTED FROM TIME TO
TIME BY LENDER, ASSIGN TO LENDER OR ITS NOMINEE BY SPECIFIC OR GENERAL
ASSIGNMENT, ANY AND ALL LEASES, SUCH ASSIGNMENTS TO BE IN FORM AND CONTENT
REASONABLY ACCEPTABLE TO LENDER, BUT SUBJECT TO THE PROVISIONS OF SECTION
7.01(B) HEREOF.
BORROWER AGREES TO DELIVER TO LENDER, WITHIN THIRTY (30) DAYS
AFTER LENDER'S REQUEST, A TRUE AND COMPLETE