DATE IF
THE INSURANCE PROCEEDS RECEIVED BY BORROWER FROM SUCH MAJOR CASUALTY ARE EQUAL
TO OR LESS THAN $10,000,000, (III) THE AGENT DETERMINES IN ITS REASONABLE
DISCRETION THAT THE INSURANCE PROCEEDS ARE SUFFICIENT TO ALLOW THE BORROWER TO
COMPLETE THE REPAIR AND RESTORATION (OR THE BORROWER HAS DEPOSITED INTO THE
RESTORATION ACCOUNT FUNDS SUFFICIENT TO FUND THE COMPLETION OF SUCH REPAIR AND
RESTORATION TO THE EXTENT NOT COVERED BY THE INSURANCE PROCEEDS), AND (IV) THE
AGENT IS SATISFIED, IN ITS REASONABLE DISCRETION, THAT ANY OPERATING DEFICITS
INCURRED AS A RESULT OF THE CASUALTY WILL BE COVERED BY THE INSURANCE PROCEEDS,
THE BORROWER'S BUSINESS INTERRUPTION INSURANCE OR BY OTHER FUNDS OF THE
BORROWER.
IF THE CONDITIONS SET FORTH IN THIS SECTION 5.25B ARE NOT SATISFIED,
THEN THE AGENT SHALL USE THE INSURANCE PROCEEDS TO PREPAY THE LOAN IN ACCORDANCE
WITH SECTION 2.7A(II) HEREOF.
C.
FROM TIME TO TIME, PROVIDED THAT THE CONDITIONS SET FORTH IN
SECTION 5.25B ARE SATISFIED, BUT IN NO EVENT MORE FREQUENTLY THAN ONCE MONTHLY,
THE AGENT SHALL DISBURSE PORTIONS OF THE INSURANCE PROCEEDS TO, OR AS DIRECTED
BY, THE BORROWER UPON RECEIPT OF (1) EVIDENCE SATISFACTORY TO IT (WHICH EVIDENCE
MAY INCLUDE INSPECTION(S) OF THE WORK PERFORMED) THAT THE RESTORATION AND REPAIR
COVERED BY THE DISBURSEMENT HAS BEEN COMPLETED IN ACCORDANCE WITH PLANS AND
SPECIFICATIONS APPROVED BY THE AGENT AND IN ACCORDANCE WITH ALL APPLICABLE LAWS,
(2) EVIDENCE REASONABLY SATISFACTORY TO IT OF THE REMAINING ESTIMATED COST OF
COMPLETION OF THE RESTORATION AND REPAIR, (3) FUNDS, OR, AT THE AGENT'S OPTION,
ASSURANCES REASONABLY SATISFACTORY TO AGENT THAT SUCH FUNDS ARE AVAILABLE AND
SUFFICIENT IN ADDITION TO THE INSURANCE PROCEEDS TO COMPLETE THE PROPOSED
RESTORATION AND REPAIR, AND (4) SUCH ARCHITECT'S CERTIFICATES, WAIVERS OF LIEN,
CONTRACTOR'S SWORN STATEMENTS, TITLE INSURANCE ENDORSEMENTS, BONDS AND OTHER
EVIDENCES OF COST, PAYMENT AND PERFORMANCE OF THE FOREGOING REPAIR AND
RESTORATION AS THE AGENT MAY REASONABLY REQUIRE AND APPROVE.
THE AGENT MAY, IN
ANY EVENT, REQUIRE THAT ALL PLANS AND SPECIFICATIONS FOR SUCH RESTORATION,
REPAIR, REPLACEMENT AND REBUILDING WITH RESPECT TO ANY MAJOR CASUALTY BE
SUBMITTED TO AND REASONABLY APPROVED BY THE AGENT PRIOR TO COMMENCEMENT OF
WORK.
THE AGENT MAY REQUEST THAT A CONSULTANT SELECTED BY AGENT INSPECT SUCH
WORK AND REVIEW THE BORROWER'S REQUEST FOR PAYMENTS AND THE BORROWER SHALL, ON
DEMAND BY THE AGENT, REIMBURSE THE AGENT FOR THE REASONABLE FEES AND
DISBURSEMENTS OF SUCH CONSULTANT IN CONNECTION THEREWITH.
NO PAYMENT MADE PRIOR
TO THE FINAL COMPLETION OF THE RESTORATION AND REPAIR OF ANY MAJOR CASUALTY
SHALL EXCEED NINETY PERCENT (90%) OF THE HARD CONSTRUCTION COSTS VALUE OF THE
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 SUCH WORK).
IF, AT ANY TIME
DURING THE COURSE OF THE RESTORATION AND REPAIR OF ANY MAJOR CASUALTY, THE AGENT
DETERMINES IN ITS REASONABLE DISCRETION, THAT THE REMAINING INSURANCE PROCEEDS
ARE NOT SUFFICIENT TO