WITHIN 90 DAYS AFTER LENDER APPLIES SUCH PROCEEDS OR
AWARD TO THE DEBT AND (Y) TOGETHER WITH SUCH PREPAYMENT, BORROWER SHALL PAY TO
LENDER ALL ACCRUED AND UNPAID INTEREST AND ALL OTHER SUMS PAYABLE UNDER THE LOAN
DOCUMENTS AND (Z) IF SUCH PREPAYMENT DOES NOT OCCUR ON A PAYMENT DATE, BORROWER
SHALL PAY ALL INTEREST THAT WOULD HAVE ACCRUED DURING THE BALANCE OF THE RELATED
INTEREST PERIOD.
7.4.3
PROCEDURE FOR APPLICATION TO RESTORATION. IF BORROWER IS ENTITLED TO
REIMBURSEMENT OUT OF THE PROCEEDS OR AN AWARD HELD BY LENDER, SUCH PROCEEDS OR
AWARD SHALL BE DISBURSED FROM TIME TO TIME FROM THE CASUALTY/CONDEMNATION
SUBACCOUNT UPON LENDER BEING FURNISHED WITH (I) EVIDENCE SATISFACTORY TO LENDER
OF THE ESTIMATED COST OF COMPLETION OF THE RESTORATION, (II) A FIXED PRICE OR
GUARANTEED MAXIMUM COST CONSTRUCTION CONTRACT FOR RESTORATION SATISFACTORY TO
LENDER, (III) PRIOR TO THE COMMENCEMENT OF RESTORATION, ALL IMMEDIATELY
AVAILABLE FUNDS IN ADDITION TO THE PROCEEDS OR AWARD THAT IN LENDER'S JUDGMENT
ARE REQUIRED TO COMPLETE THE PROPOSED RESTORATION (OR SUCH ADDITIONAL FUNDS ARE
IRREVOCABLY COMMITTED TO THE SATISFACTION OF LENDER BY OR ON BEHALF OF BORROWER
FOR THAT PURPOSE), (IV) SUCH ARCHITECT'S CERTIFICATES, WAIVERS OF LIEN,
CONTRACTOR'S SWORN STATEMENTS, TITLE INSURANCE ENDORSEMENTS, BONDS, PLATS OF
SURVEY, PERMITS, APPROVALS, LICENSES AND SUCH OTHER DOCUMENTS AND ITEMS AS
LENDER MAY REASONABLY REQUIRE AND APPROVE IN LENDER'S DISCRETION, AND (V) ALL
PLANS AND SPECIFICATIONS FOR SUCH RESTORATION, SUCH PLANS AND SPECIFICATIONS TO
BE APPROVED BY LENDER IN WRITING PRIOR TO COMMENCEMENT OF ANY WORK. LENDER MAY,
AT BORROWER'S EXPENSE, RETAIN A CONSULTANT TO REVIEW AND APPROVE ALL REQUESTS
FOR DISBURSEMENTS, WHICH APPROVAL SHALL ALSO BE A CONDITION PRECEDENT TO ANY
DISBURSEMENT. NO PAYMENT MADE PRIOR TO THE FINAL COMPLETION OF THE RESTORATION
SHALL EXCEED NINETY PERCENT (90%) OF THE VALUE OF THE WORK PERFORMED FROM TIME
TO TIME; FUNDS OTHER THAN THE PROCEEDS OR AWARD SHALL BE DISBURSED PRIOR TO
DISBURSEMENT OF SUCH PROCEEDS OR AWARD; AND AT ALL TIMES, THE UNDISBURSED
BALANCE OF SUCH PROCEEDS OR AWARD REMAINING IN THE HANDS OF LENDER, TOGETHER
WITH FUNDS DEPOSITED FOR THAT PURPOSE OR IRREVOCABLY COMMITTED TO THE
60
SATISFACTION OF LENDER BY OR ON BEHALF OF BORROWER FOR THAT PURPOSE, SHALL BE AT
LEAST SUFFICIENT IN THE REASONABLE JUDGMENT OF LENDER TO PAY FOR THE COST OF
COMPLETION OF THE RESTORATION, FREE AND CLEAR OF ALL LIENS OR CLAIMS FOR LIEN.
PROVIDED NO DEFAULT OR EVENT OF DEFAULT THEN EXISTS, ANY SURPLUS THAT REMAINS
OUT OF THE PROCEEDS HELD BY LENDER AFTER PAYMENT OF SUCH COSTS OF RESTORATION
SHALL BE PAID TO BORROWER. ANY SURPLUS THAT REMAINS OUT OF THE AWARD RECEIVED BY
LENDER AFTER PAYMENT OF SUCH COSTS OF RESTORATION SHALL, IN THE DISCRETION OF
LENDER, BE RETAINED BY LENDER AND APPLIED TO PAYMENT OF THE DEBT OR RETURNED TO
BORROWER.
8.
DEFAULTS
8.1
EVENTS OF DEFAULT. AN "EVENT OF DEFAULT" SHALL EXIST WITH RESPECT
TO THE LOAN IF ANY OF THE FOLLOWING SHALL OCCUR:
(A)
ANY PORTION OF THE DEBT IS NOT