AND
ALL LIENS EXCEPT PERMITTED ENCUMBRANCES (SUCH REPAIR, RESTORATION AND REBUILDING
ARE SOMETIMES COLLECTIVELY REFERRED TO AS THE "WORK").
THE PLANS AND
SPECIFICATIONS SHALL REQUIRE THAT THE WORK BE DONE IN A GOOD AND WORKMANLIKE
MANNER AT LEAST SUBSTANTIALLY EQUIVALENT TO THE QUALITY AND CHARACTER OF THE
PROPERTY AND REASONABLY EQUIVALENT TO THE VALUE OF THE PROPERTY PRIOR TO THE
DAMAGE OR DESTRUCTION, SO THAT UPON COMPLETION THEREOF, THE PROPERTY SHALL BE AT
LEAST EQUAL IN GENERAL UTILITY AND CONDITION TO THE PROPERTY PRIOR TO THE DAMAGE
OR DESTRUCTION, SUBJECT TO ANY RESTRICTIONS ON BORROWER'S ABILITY TO DO SO WHICH
MAY BE IMPOSED BY ANY APPLICABLE LEGAL REQUIREMENTS (PROVIDED, HOWEVER, THAT IN
THE CASE OF A PARTIAL TAKING, THE PROPERTY RESTORATION SHALL BE DONE TO THE
EXTENT REASONABLY PRACTICABLE AFTER TAKING INTO ACCOUNT THE CONSEQUENCES OF SUCH
PARTIAL TAKING); IT BEING UNDERSTOOD, HOWEVER, THAT BORROWER SHALL NOT BE
OBLIGATED TO RESTORE THE PROPERTY TO THE PRECISE CONDITION OF THE PROPERTY PRIOR
TO ANY PARTIAL TAKING OF, OR CASUALTY OR OTHER DAMAGE OR INJURY TO, THE
PROPERTY, IF THE WORK ACTUALLY PERFORMED, IF ANY, OR FAILED TO BE PERFORMED,
WOULD NOT REASONABLY BE EXPECTED TO HAVE, AND DOES NOT HAVE A MATERIAL ADVERSE
EFFECT ON THE VALUE OF THE PROPERTY FROM THE VALUE THAT THE PROPERTY WOULD HAVE
HAD IF THE SAME HAD BEEN RESTORED TO ITS PRECISE CONDITION IMMEDIATELY PRIOR TO
SUCH TAKING, CASUALTY OR OTHER DAMAGE OR INJURY.
BORROWER SHALL BE OBLIGATED TO
RESTORE THE PROPERTY SUFFERING A CASUALTY OR WHICH HAS BEEN SUBJECT TO A PARTIAL
TAKING IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 6.2 AT BORROWER'S SOLE
COST AND EXPENSE WHETHER OR NOT THE PROCEEDS SHALL BE SUFFICIENT, PROVIDED THAT,
IF REQUIRED PURSUANT TO THIS AGREEMENT, THE PROCEEDS SHALL BE MADE AVAILABLE TO
BORROWER BY LENDER IN ACCORDANCE WITH THIS AGREEMENT;
(B)
IF PROCEEDS ARE NOT APPLIED TOWARD PAYMENT OF THE INDEBTEDNESS
PURSUANT TO THE TERMS HEREOF AND BORROWER HAS SATISFIED ALL OF THE CONDITIONS OF
SECTION 6.2.3, THEN LENDER SHALL MAKE THE PROCEEDS WHICH IT IS HOLDING PURSUANT
TO THE TERMS HEREOF (AFTER PAYMENT OF ANY REASONABLE OUT‐OF‐POCKET EXPENSES
(INCLUDING REASONABLE ATTORNEYS' FEES AND DISBURSEMENTS) ACTUALLY INCURRED BY
LENDER IN CONNECTION WITH THE COLLECTION THEREOF PLUS
INTEREST THEREON AT THE
DEFAULT RATE (FROM THE DATE ADVANCED THROUGH THE DATE OF REIMBURSEMENT) TO THE
EXTENT THE SAME ARE NOT PAID WITHIN FIFTEEN (15) BUSINESS DAYS AFTER REQUEST FOR
REIMBURSEMENT BY LENDER, ACCOMPANIED BY REASONABLE BACK‐UP DOCUMENTATION)
AVAILABLE TO BORROWER FOR PAYMENT OF OR REIMBURSEMENT OF BORROWER'S EXPENSES
INCURRED WITH RESPECT TO THE WORK, UPON THE TERMS AND SUBJECT TO THE CONDITIONS
SET FORTH IN SUB‐PARAGRAPHS (I), (II), (III)
AND (IV)
BELOW AND IN
SECTION 6.2.5:
84
(I)
AT THE TIME OF THE REQUESTED DISBURSEMENT, THERE SHALL BE NO
CONTINUING EVENT OF DEFAULT;
(II)
IF, AT ANY TIME, THE ESTIMATED COST OF THE WORK (AS ESTIMATED
BY THE INDEPENDENT ARCHITECT REFERRED TO IN SUB‐PARAGRAPH (IV) BELOW) SHALL
EXCEED THE SUM OF THE PROCEEDS BY MORE THAN