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.
54
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 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 IN LIEU OF OR IN ANTICIPATION OF THE EXERCISE OF
SUCH TAKING), BORROWER SHALL CONTINUE TO PAY THE DEBT AT THE TIME AND IN THE
MANNER PROVIDED FOR ITS PAYMENT IN THE NOTE AND IN THIS AGREEMENT AND THE DEBT
SHALL NOT BE REDUCED UNTIL ANY AWARD