CONDITIONS APPLICABLE TO THE
DISBURSEMENT OF THE NET PROCEEDS, AND UNTIL SO DISBURSED PURSUANT TO THIS
‎SECTION 6.4(B) SHALL CONSTITUTE ADDITIONAL SECURITY FOR THE DEBT AND OTHER
OBLIGATIONS UNDER THE LOAN DOCUMENTS.
(VII)
THE EXCESS, IF ANY, OF THE NET PROCEEDS AND THE REMAINING BALANCE, IF
ANY, OF THE NET PROCEEDS DEFICIENCY DEPOSITED WITH LENDER AFTER THE CASUALTY
CONSULTANT CERTIFIES TO LENDER THAT THE RESTORATION HAS BEEN SUBSTANTIALLY
COMPLETED IN ACCORDANCE WITH THE PROVISIONS OF THIS ‎SECTION 6.4(B), AND THE
RECEIPT BY LENDER OF EVIDENCE REASONABLY SATISFACTORY TO LENDER THAT ALL COSTS
INCURRED IN CONNECTION WITH THE RESTORATION HAVE BEEN PAID IN FULL, SHALL BE
REMITTED BY LENDER TO BORROWER, PROVIDED NO EVENT OF DEFAULT SHALL HAVE OCCURRED
AND SHALL BE CONTINUING UNDER THE NOTE, THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS.
(C)
ALL NET PROCEEDS NOT REQUIRED (I) TO BE MADE AVAILABLE FOR THE
RESTORATION OR (II) TO BE RETURNED TO BORROWER AS EXCESS NET PROCEEDS PURSUANT
TO ‎SECTION 6.4(B)(VII) MAY BE RETAINED AND APPLIED BY LENDER TOWARD THE PAYMENT
OF THE DEBT WHETHER OR NOT THEN DUE AND PAYABLE IN SUCH ORDER, PRIORITY AND
PROPORTIONS AS LENDER IN ITS SOLE DISCRETION SHALL DEEM PROPER, OR, AT THE
DISCRETION OF LENDER, THE SAME MAY BE PAID, EITHER IN WHOLE OR IN PART, TO
BORROWER FOR SUCH PURPOSES AS LENDER SHALL APPROVE, IN ITS DISCRETION.
IF
LENDER SHALL RECEIVE AND RETAIN NET PROCEEDS, THE LIEN OF THE SECURITY
INSTRUMENTS SHALL BE REDUCED ONLY BY THE AMOUNT THEREOF RECEIVED AND RETAINED BY
LENDER AND ACTUALLY APPLIED BY LENDER IN REDUCTION OF THE DEBT IN ACCORDANCE
WITH SECTION 2.3.2 HEREOF.
(D)
BORROWER SHALL CAUSE EACH MEZZANINE ASSET OWNER AND ENCUMBERED
PROPERTY SUBSIDIARY TO COMPLY WITH THE RESTORATION REQUIREMENTS SET FORTH IN THE
MORTGAGE LOAN DOCUMENTS ENCUMBERING THE RELATED MEZZANINE ASSET AND ENCUMBERED
PROPERTY.
ARTICLE VII
[RESERVED]
ARTICLE VIII
DEFAULTS
SECTION 8.1
EVENT OF DEFAULT.
(A)
EACH OF THE FOLLOWING EVENTS SHALL CONSTITUTE AN EVENT OF DEFAULT
HEREUNDER (AN "EVENT OF DEFAULT"):
72
(I)
IF (A) ANY REGULARLY SCHEDULED PAYMENT OF INTEREST OR PRINCIPAL
(INCLUDING THE PRINCIPAL AND INTEREST DUE ON THE MATURITY DATE) OR ANY DEPOSIT
TO ANY RESERVE ACCOUNT DESCRIBED HEREIN IS NOT PAID WITHIN THREE (3) BUSINESS
DAYS AFTER THE DATE THE SAME IS DUE AND PAYABLE OR (B) ANY OTHER PORTION OF THE
DEBT IS NOT PAID WITHIN FIVE (5) BUSINESS DAYS AFTER DEMAND THEREFORE (OR SUCH
LONGER PERIOD OF TIME EXPRESSLY PROVIDED FOR IN THE LOAN DOCUMENTS);
(II)
IF ANY OF THE TAXES ARE NOT PAID ON OR BEFORE THE DATE THE SAME BECOME
DELINQUENT UNLESS LENDER DETERMINES, IN ITS SOLE DISCRETION, THAT SUCH FAILURE
TO PAY TAXES IS NOT LIKELY TO HAVE A MATERIAL ADVERSE EFFECT;
(III)
IF THE POLICIES ARE NOT KEPT IN FULL FORCE AND EFFECT OR IF CERTIFIED
COPIES OF THE POLICIES ARE NOT DELIVERED TO LENDER ON REQUEST;
(IV)
IF ANY KEY ENTITY OR MEZZANINE PROPERTY GUARANTOR OR ANY OTHER PERSON
TRANSFERS OR ENCUMBERS ANY PORTION OF ANY INDIVIDUAL PROPERTY