TO COLLECT AND RECEIPT FOR THE AWARD. IN THE EVENT OF A
CONDEMNATION WHERE THE AWARD IS IN EXCESS OF $2,000,000 OR WHICH RESULTS IN THE
TAKING OF MORE THAN FIVE PERCENT (5%) OF THE PROPERTY, LENDER IS HEREBY
IRREVOCABLY APPOINTED AS BORROWER'S
58
ATTORNEY-IN-FACT, COUPLED WITH AN INTEREST, WITH EXCLUSIVE POWER TO COLLECT,
RECEIVE AND RETAIN SUCH AWARD AND TO MAKE ANY COMPROMISE, ADJUSTMENT OR
SETTLEMENT IN CONNECTION WITH SUCH CONDEMNATION WITH THE PRIOR CONSENT OF
BORROWER (UNLESS AN EVENT OF DEFAULT IS CONTINUING, IN WHICH CASE, BORROWER'S
PRIOR CONSENT SHALL NOT BE REQUIRED), NOT TO BE UNREASONABLY WITHHELD (WHICH
SHALL BE DEEMED CONSENTED TO IF BORROWER FAILS TO RESPOND TO ANY REQUEST FOR
CONSENT THEREFOR WITHIN 10 DAYS' OF REQUEST). NOTWITHSTANDING ANY CONDEMNATION
(OR ANY TRANSFER MADE IN LIEU OF OR IN ANTICIPATION OF SUCH CONDEMNATION),
BORROWER SHALL CONTINUE TO PAY THE DEBT AT THE TIME AND IN THE MANNER PROVIDED
FOR IN THE LOAN DOCUMENTS, AND THE DEBT SHALL NOT BE REDUCED UNLESS AND UNTIL
ANY AWARD SHALL HAVE BEEN ACTUALLY RECEIVED AND APPLIED BY LENDER TO EXPENSES OF
COLLECTING THE AWARD AND TO DISCHARGE OF THE DEBT. LENDER SHALL NOT BE LIMITED
TO THE INTEREST PAID ON THE AWARD BY THE CONDEMNING AUTHORITY BUT SHALL BE
ENTITLED TO RECEIVE OUT OF THE AWARD INTEREST AT THE RATE OR RATES PROVIDED IN
THE NOTE. IF THE PROPERTY IS SOLD, THROUGH FORECLOSURE OR OTHERWISE, PRIOR TO
THE RECEIPT BY LENDER OF SUCH AWARD, LENDER SHALL HAVE THE RIGHT, WHETHER OR NOT
A DEFICIENCY JUDGMENT ON THE NOTE SHALL BE RECOVERABLE OR SHALL HAVE BEEN
SOUGHT, RECOVERED OR DENIED, TO RECEIVE ALL OR A PORTION OF THE AWARD SUFFICIENT
TO PAY THE DEBT. BORROWER SHALL CAUSE ANY AWARD THAT IS PAYABLE TO BORROWER TO
BE PAID DIRECTLY TO LENDER. LENDER SHALL HOLD SUCH AWARD IN THE
CASUALTY/CONDEMNATION SUBACCOUNT AND DISBURSE SUCH AWARD IN ACCORDANCE WITH THE
TERMS HEREOF.
7.4
APPLICATION OF PROCEEDS OR AWARD.
7.4.1
APPLICATION TO RESTORATION. IF AN INSURED CASUALTY OR CONDEMNATION
OCCURS WHERE (I) THE LOSS IS IN AN AGGREGATE AMOUNT LESS THAN TWENTY FIVE
PERCENT (25%) OF THE UNPAID PRINCIPAL; (II) IN THE REASONABLE JUDGMENT OF
LENDER, THE PROPERTY CAN BE RESTORED WITHIN TWELVE (12) MONTHS AFTER ALL
APPLICABLE RESTORATION PERMITS HAVE BEEN OBTAINED, AND PRIOR TO SIX (6) MONTHS
BEFORE THE STATED MATURITY DATE AND PRIOR TO THE EXPIRATION OF THE RENTAL OR
BUSINESS INTERRUPTION INSURANCE WITH RESPECT THERETO, TO THE PROPERTY'S
PRE-EXISTING CONDITION AND UTILITY AS EXISTED IMMEDIATELY PRIOR TO SUCH INSURED
CASUALTY OR CONDEMNATION AND TO AN ECONOMIC UNIT NOT LESS VALUABLE AND NOT LESS
USEFUL THAN THE SAME WAS IMMEDIATELY PRIOR TO THE INSURED CASUALTY OR
CONDEMNATION, AND AFTER SUCH RESTORATION WILL ADEQUATELY SECURE THE DEBT;
(III) LESS THAN (X) THIRTY PERCENT (30%), IN THE CASE OF AN INSURED CASUALTY OR
(Y) FIFTEEN PERCENT (15%), IN THE CASE OF A CONDEMNATION, OF THE RENTABLE AREA
OF THE IMPROVEMENTS HAS BEEN DAMAGED, DESTROYED OR RENDERED UNUSABLE AS A RESULT
OF SUCH