SO INSURING THE PROPERTY OR IN SO ASSIGNING AND DELIVERING
THE POLICIES, LENDER MAY, AT ITS OPTION, OBTAIN SUCH INSURANCE USING SUCH
CARRIERS AND AGENCIES AS LENDER SHALL ELECT FROM YEAR TO YEAR AND PAY THE
PREMIUMS THEREFOR, AND BORROWER WILL REIMBURSE LENDER FOR ANY PREMIUM SO PAID,
WITH INTEREST THEREON AS STATED IN THE NOTE FROM THE TIME OF PAYMENT, ON DEMAND,
AND THE AMOUNT SO OWNING TO LENDER SHALL BE SECURED BY THE MORTGAGE.
THE
INSURANCE OBTAINED BY LENDER MAY, BUT NEED NOT, PROTECT BORROWER'S INTEREST AND
THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT BORROWER MAKES OR
ANY CLAIM THAT IS MADE AGAINST BORROWER IN CONNECTION WITH THE PROPERTY.
(G)
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PROVIDED NO
DEFAULT SHALL EXIST UNDER THE ANCHOR TENANT LEASE, AND FURTHER PROVIDED THAT
ANCHOR TENANT SHALL MAINTAIN A CREDIT RATING ISSUED BY STANDARD AND POOR'S OF BB
OR BETTER (OR AN EQUIVALENT RATING ISSUED BY ANOTHER NATIONALLY RECOGNIZED
RATING AGENCY REASONABLY ACCEPTABLE TO LENDER), ANCHOR TENANT SHALL BE PERMITTED
TO SELF-INSURE WITH RESPECT TO THE COVERAGE REQUIRED HEREUNDER IN STRICT
ACCORDANCE WITH THE ANCHOR TENANT LEASE, AND SUCH SELF-INSURANCE SHALL BE DEEMED
TO SATISFY THE REQUIREMENTS OF THIS SECTION 6.1.
SECTION 6.2.
CASUALTY.
IF THE PROPERTY SHALL BE DAMAGED OR
DESTROYED, IN WHOLE OR IN PART, BY FIRE OR OTHER CASUALTY (A "CASUALTY"),
BORROWER (A) SHALL GIVE (OR CAUSE ANCHOR TENANT TO GIVE) TO LENDER PROMPT NOTICE
OF SUCH DAMAGE REASONABLY ESTIMATED BY BORROWER TO COST MORE THAN ONE HUNDRED
THOUSAND DOLLARS ($100,000.00) TO REPAIR, AND (B) SHALL PROMPTLY COMMENCE AND
DILIGENTLY PROSECUTE THE COMPLETION OF THE REPAIR AND RESTORATION OF THE
PROPERTY AS NEARLY AS POSSIBLE TO THE CONDITION THE PROPERTY WAS IN IMMEDIATELY
PRIOR TO SUCH FIRE OR OTHER CASUALTY, WITH SUCH ALTERATIONS AS MAY BE REASONABLY
APPROVED BY LENDER (A "RESTORATION") AND OTHERWISE IN ACCORDANCE WITH
SECTION 6.4.
BORROWER SHALL PAY ALL COSTS OF SUCH RESTORATION WHETHER OR NOT
SUCH COSTS ARE COVERED BY INSURANCE.
LENDER MAY, BUT SHALL NOT BE OBLIGATED TO
MAKE PROOF OF LOSS IF NOT MADE PROMPTLY BY BORROWER.
NOTWITHSTANDING THE
FOREGOING, IN THE
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EVENT OF A CONFLICT BETWEEN THE FOREGOING REQUIREMENTS AND THE PROVISIONS OF THE
ANCHOR TENANT LEASE, THE ANCHOR TENANT LEASE SHALL CONTROL.
SECTION 6.3.
CONDEMNATION.
(A)
BORROWER SHALL PROMPTLY GIVE LENDER NOTICE OF THE ACTUAL OR
THREATENED COMMENCEMENT OF ANY PROCEEDING FOR THE CONDEMNATION OF THE PROPERTY
AND SHALL DELIVER TO LENDER COPIES OF ANY AND ALL PAPERS SERVED IN CONNECTION
WITH SUCH PROCEEDINGS.
LENDER MAY PARTICIPATE IN ANY SUCH PROCEEDINGS, AND
BORROWER SHALL FROM TIME TO TIME DELIVER TO LENDER ALL INSTRUMENTS REQUESTED BY
IT TO PERMIT SUCH PARTICIPATION.
BORROWER SHALL, AT ITS EXPENSE, DILIGENTLY
PROSECUTE ANY SUCH PROCEEDINGS, AND SHALL CONSULT WITH LENDER, ITS ATTORNEYS AND
EXPERTS, AND COOPERATE WITH THEM IN THE CARRYING ON OR DEFENSE OF ANY SUCH
PROCEEDINGS.
NOTWITHSTANDING ANY TAKING BY ANY PUBLIC OR QUASI-PUBLIC AUTHORITY
THROUGH CONDEMNATION OR OTHERWISE (INCLUDING BUT NOT LIMITED TO ANY TRANSFER
MADE