Event of Default.
All amounts advanced by Lender to
procure the required insurance shall be added to principal, secured by the
Security Instrument and bear interest at the Default Rate.
Lender shall not be
responsible for, nor incur any liability for the insolvency of the insurer or
other failure of the insurer to perform, even though Lender has caused the
insurance to be placed with the insurer after Borrower's failure to furnish such
insurance.
(F)
ADDITIONAL INSURANCE.
BORROWER SHALL NOT
OBTAIN INSURANCE FOR THE PROPERTY IN ADDITION TO THAT REQUIRED BY LENDER WITHOUT
LENDER'S PRIOR WRITTEN CONSENT, WHICH CONSENT WILL NOT BE UNREASONABLY WITHHELD
PROVIDED THAT (I) LENDER IS NAMED INSURED ON SUCH INSURANCE, (II) LENDER
RECEIVES EVIDENCE OF SUCH INSURANCE AS REQUIRED BY SUBSECTION (D) ABOVE, AND
(III) SUCH INSURANCE COMPLIES WITH ALL OF THE APPLICABLE REQUIREMENTS SET FORTH
IN THIS LOAN AGREEMENT.
Section 9.04
Obligations upon Condemnation or
Casualty.
If the Property, or any portion thereof, shall be damaged or
destroyed by a Casualty or become subject to any Condemnation, the following
shall apply:
(A)
GENERALLY.
BORROWER SHALL PROMPTLY NOTIFY
LENDER, IN WRITING, OF ANY ACTUAL OR THREATENED CONDEMNATION OR OF ANY CASUALTY
THAT DAMAGES OR RENDERS UNUSABLE THE PROPERTY OR ANY PART THEREOF AND, EXCEPT AS
OTHERWISE PROVIDED BELOW, SHALL PROMPTLY AND DILIGENTLY PURSUE BORROWER'S CLAIM
FOR A CONDEMNATION AWARD OR INSURANCE PROCEEDS, AS APPLICABLE.
BORROWER SHALL
NOT MAKE ANY AGREEMENT IN LIEU OF CONDEMNATION OR ACCEPT ANY CONDEMNATION AWARD
WITHOUT LENDER'S PRIOR WRITTEN CONSENT, UNLESS SUCH CLAIM IS IN AN AMOUNT OF
$100,000 OR LESS.
BORROWER SHALL NOT ACCEPT ANY SETTLEMENT OF INSURANCE
PROCEEDS WITH RESPECT TO A CASUALTY WITHOUT LENDER'S PRIOR WRITTEN CONSENT,
UNLESS SUCH PROCEEDS ARE IN AN AMOUNT OF $100,000 OR LESS.
IF REQUESTED BY
LENDER, BORROWER AGREES TO PROVIDE COPIES TO LENDER OF ALL NOTICES OR FILINGS
MADE OR RECEIVED BY BORROWER IN CONNECTION WITH THE CASUALTY OR CONDEMNATION OR
WITH RESPECT TO COLLECTION OF THE INSURANCE PROCEEDS OR CONDEMNATION AWARD, AS
APPLICABLE.
NOTWITHSTANDING THAT A CASUALTY OR CONDEMNATION HAS OCCURRED, OR
THAT RIGHTS TO A CONDEMNATION AWARD OR INSURANCE PROCEEDS ARE PENDING, BORROWER
SHALL CONTINUE TO PAY THE LOAN AT THE TIME AND IN THE MANNER PROVIDED IN THIS
LOAN AGREEMENT.
(B)
LENDER RIGHT TO PURSUE CLAIM.
BORROWER
HEREBY GRANTS LENDER THE AUTHORITY, AT LENDER'S OPTION, EITHER:
(I) TO SETTLE
AND ADJUST ANY CLAIM ARISING WITH RESPECT TO THE CASUALTY OR CONDEMNATION
WITHOUT BORROWER'S CONSENT, OR (II) TO ALLOW BORROWER TO SETTLE AND ADJUST SUCH
CLAIM; PROVIDED THAT, IN EITHER CASE, THE INSURANCE PROCEEDS OR CONDEMNATION
AWARD, AS APPLICABLE, IS PAID DIRECTLY TO LENDER.
BORROWER HEREBY APPOINTS
LENDER ITS ATTORNEY-IN-FACT WITH FULL POWER OF SUBSTITUTION (AND WHICH SHALL BE
DEEMED TO BE COUPLED WITH AN INTEREST AND IRREVOCABLE UNTIL THE LOAN IS PAID AND
THE SECURITY INSTRUMENT IS DISCHARGED OF RECORD, WITH BORROWER HEREBY RATIFYING
ALL THAT ITS SAID ATTORNEY SHALL DO BY VIRTUE THEREOF) TO ENDORSE ANY
AGREEMENTS, INSTRUMENTS OR DRAFTS RECEIVED IN CONNECTION WITH A CASUALTY OR
CONDEMNATION.
IF