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
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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 NINE MONTHS AFTER ALL
APPLICABLE RESTORATION PERMITS HAVE BEEN OBTAINED, AND PRIOR TO SIX 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 INSURED CASUALTY OR CONDEMNATION; (IV) LEASES DEMISING IN THE AGGREGATE AT
LEAST SIXTY-FIVE PERCENT (65%) OF THE TOTAL RENTABLE SPACE IN THE PROPERTY AND
IN EFFECT AS OF THE DATE OF THE OCCURRENCE OF SUCH INSURED CASUALTY OR
CONDEMNATION REMAIN IN FULL FORCE AND EFFECT DURING AND AFTER THE COMPLETION OF
THE RESTORATION (HEREINAFTER DEFINED); AND (V) NO