LENDER MAY, IN ITS SOLE DISCRETION, APPLY ANY SUCH CONDEMNATION
PROCEEDS TO THE REDUCTION OR DISCHARGE OF THE INDEBTEDNESS (WHETHER OR NOT THEN
DUE AND PAYABLE).
(III) WITH RESPECT TO A TAKING IN PART, WHICH SHALL MEAN ANY TAKING WHICH DOES
NOT RENDER THE AFFECTED MORTGAGED PROPERTY PHYSICALLY OR ECONOMICALLY UNSUITABLE
IN THE REASONABLE JUDGMENT OF LENDER FOR THE USE TO WHICH IT WAS DEVOTED PRIOR
TO THE TAKING, BORROWER SHALL CAUSE THE CONDEMNATION PROCEEDS TO BE PAID TO
LENDER AS DESCRIBED ABOVE, AND IF LENDER DOES NOT ELECT TO APPLY THE SAME TO THE
INDEBTEDNESS AS PROVIDED IN SECTION 5.1(Y)(II) ABOVE, LENDER SHALL DEPOSIT SUCH
CONDEMNATION PROCEEDS IN THE LOSS PROCEEDS ACCOUNT AND THE SAME SHALL BE MADE
AVAILABLE FOR APPLICATION TO THE COST OF RESTORATION OF THE AFFECTED MORTGAGED
PROPERTY AND DISBURSED FROM TIME TO TIME AS THE RESTORATION PROGRESSES UPON
LENDER BEING FURNISHED WITH (1) EVIDENCE REASONABLY SATISFACTORY TO IT (WHICH
EVIDENCE MAY INCLUDE INSPECTION(S) OF THE WORK PERFORMED) THAT THE RESTORATION
COVERED BY THE DISBURSEMENT HAS BEEN COMPLETED IN ACCORDANCE WITH PLANS AND
SPECIFICATIONS APPROVED BY LENDER, (2) EVIDENCE REASONABLY SATISFACTORY TO IT OF
THE ESTIMATED COST OF COMPLETION OF THE RESTORATION, (3) FUNDS, OR, AT LENDER'S
OPTION, ASSURANCES SATISFACTORY TO LENDER THAT SUCH FUNDS ARE AVAILABLE AND
SUFFICIENT IN ADDITION TO THE CONDEMNATION PROCEEDS TO COMPLETE THE PROPOSED
RESTORATION, AND (4) SUCH ARCHITECT'S CERTIFICATES, WAIVERS OF LIEN,
CONTRACTOR'S SWORN STATEMENTS, TITLE INSURANCE ENDORSEMENTS, BONDS AND OTHER
EVIDENCES OF
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COST, PAYMENT AND PERFORMANCE OF THE FOREGOING REPAIR, RESTORATION, REPLACEMENT
OR REBUILDING AS LENDER MAY REASONABLY REQUIRE AND APPROVE.
(IV) REGARDLESS OF WHETHER CONDEMNATION PROCEEDS ARE MADE AVAILABLE FOR SUCH
PURPOSE, BORROWER HEREBY COVENANTS TO COMPLETE THE RESTORATION OF THE AFFECTED
MORTGAGED PROPERTY AS NEARLY AS POSSIBLE TO THE PRE-EXISTING CONDITION AND TO BE
OF AT LEAST COMPARABLE VALUE AND, TO THE EXTENT COMMERCIALLY PRACTICABLE, OF
SUBSTANTIALLY THE SAME CHARACTER AS PRIOR TO THE TAKING, ALL TO BE EFFECTED IN
ACCORDANCE WITH APPLICABLE LAW AND PLANS AND SPECIFICATIONS REASONABLY APPROVED
IN ADVANCE BY LENDER.
BORROWER SHALL PAY ALL COSTS (AND IF REQUIRED BY LENDER,
BORROWER SHALL DEPOSIT THE TOTAL THEREOF WITH LENDER IN ADVANCE) OF SUCH
RESTORATION IN EXCESS OF THE CONDEMNATION PROCEEDS MADE AVAILABLE PURSUANT TO
THE TERMS HEREOF.
LENDER MAY, IN ANY EVENT, REQUIRE THAT ALL PLANS AND
SPECIFICATIONS FOR SUCH RESTORATION BE SUBMITTED TO AND REASONABLY APPROVED BY
LENDER PRIOR TO COMMENCEMENT OF WORK.
LENDER MAY RETAIN A CONSTRUCTION
CONSULTANT TO INSPECT SUCH WORK AND REVIEW ANY REQUEST BY BORROWER FOR PAYMENTS
AND BORROWER SHALL, ON DEMAND BY LENDER, REIMBURSE LENDER FOR THE REASONABLE
FEES AND DISBURSEMENTS OF SUCH CONSULTANT.
NO PAYMENT MADE PRIOR TO THE FINAL
COMPLETION OF THE RESTORATION SHALL EXCEED NINETY PERCENT (90%) OF THE HARD
CONSTRUCTION COSTS VALUE OF THE CONSTRUCTION WORK PERFORMED FROM TIME TO TIME
(EXCEPT FOR RESTORATION WORK ON A TRADE BY TRADE BASIS OR ON AN HOURLY BASIS FOR
PROFESSIONAL SERVICES IN WHICH EVENT, PAYMENT MAY BE MADE IN FULL UPON THE
COMPLETION OF