PROPERTY, (B) THAT UPON COMPLETION OF
THE WORK, THE SIZE, QUALITY AND FUNCTIONALITY OF THE PROPERTY WILL BE AT LEAST
AS GREAT AS IT WAS BEFORE THE DAMAGE OR CONDEMNATION OCCURRED, AND (C) OF THE
SATISFACTION OF ANY ADDITIONAL CONDITIONS THAT LENDER MAY REASONABLY ESTABLISH
AND THAT ARE CUSTOMARILY IMPOSED BY LENDER.
IN ADDITION TO THE CONDITIONS SET
FORTH ABOVE, IF LENDER PERMITS PROPERTY PROCEEDS TO BE USED BY BORROWER TO
RESTORE OR REPAIR THE PROPERTY AFTER THE OCCURRENCE OF A CASUALTY OR A TAKING AS
PROVIDED ABOVE, THE DISBURSEMENT OF ALL INSURANCE PROCEEDS OR CONDEMNATION
AWARDS BY LENDER TO BORROWER SHALL BE CONDITIONED UPON THE SAME GENERAL TERMS
AND CONDITIONS AS THOSE SET FORTH IN ARTICLE V RESPECTING THE FUNDING OF
ADVANCES. IF THE LOSS OR DAMAGE DUE TO A CASUALTY OR CONDEMNATION IS GREATER
THAN 25% OF THE OUTSTANDING LOAN BALANCE, AS DETERMINED BY LENDER IN ITS
REASONABLE DISCRETION, THEN RELEASE OF THE PROPERTY PROCEEDS HELD BY LENDER
SHALL BE AT LENDER'S SOLE DISCRETION. BORROWER ACKNOWLEDGES THAT THE CONDITIONS
DESCRIBED ABOVE ARE REASONABLE.
SECTION 9.3
REDUCTION IN
SECURED OBLIGATIONS.
ANY REDUCTION IN THE SECURED OBLIGATIONS RESULTING FROM
LENDER'S APPLICATION OF ANY SUMS RECEIVED BY IT HEREUNDER SHALL TAKE EFFECT ONLY
WHEN LENDER ACTUALLY RECEIVES SUCH SUMS AND APPLIES SUCH SUMS TO THE SECURED
OBLIGATIONS AND, IN ANY EVENT, THE UNPAID PORTION OF THE SECURED OBLIGATIONS
SHALL REMAIN IN FULL FORCE AND EFFECT AND BORROWER SHALL NOT BE EXCUSED IN THE
PAYMENT THEREOF.
IF LENDER REQUIRES BORROWER TO RESTORE OR REPAIR THE PROPERTY
AFTER THE OCCURRENCE OF A CASUALTY OR THE OCCURRENCE OF A TAKING, BORROWER SHALL
PROMPTLY AND DILIGENTLY, AT BORROWER'S SOLE COST AND EXPENSE AND REGARDLESS OF
WHETHER THE PROPERTY PROCEEDS SHALL BE SUFFICIENT FOR THE PURPOSE, RESTORE,
REPAIR, REPLACE AND REBUILD THE PROPERTY AS NEARLY AS POSSIBLE TO ITS VALUE,
CONDITION AND CHARACTER IMMEDIATELY PRIOR TO SUCH CASUALTY OR TAKING IN
ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND BORROWER SHALL PAY TO LENDER
ALL REASONABLE OUT-OF-POCKET COSTS AND EXPENSES OF LENDER INCURRED IN
ADMINISTERING PAYMENTS ON ACCOUNT OF SAID REBUILDING, RESTORATION OR REPAIR,
PROVIDED THAT LENDER MAKES THE PROPERTY PROCEEDS AVAILABLE FOR SUCH PURPOSE.
37
ARTICLE X
EVENTS OF DEFAULT
SECTION 10.1
EVENTS OF DEFAULT.
BELOW ARE LISTED THE EVENTS WHICH CONSTITUTE AN EVENT OF DEFAULT UNDER THIS
AGREEMENT.
THE NOTICE AND/OR CURE PERIODS, IF ANY, APPLICABLE TO EACH ITEM OF
DEFAULT IS LISTED WITH THE SUBPARAGRAPH PERTAINING TO SUCH ITEM OF DEFAULT.
IF
NO NOTICE OR CURE PERIOD IS LISTED, THEN NO NOTICE OR CURE PERIOD SHALL APPLY.
THE NOTICE AND/OR CURE PERIOD PROVIDED FOR ANY SPECIFIC ITEM OF DEFAULT SHALL
CONTROL OVER THE NOTICE AND/OR CURE PERIOD PROVIDED FOR ANY MORE GENERAL
CATEGORY OF DEFAULTS EVEN THOUGH THE GENERAL CATEGORY INCLUDES THE DEFAULT THAT
IS SPECIFICALLY LISTED SEPARATELY.
EACH OF THE FOLLOWING SHALL CONSTITUTE AN
"EVENT OF DEFAULT" UNDER THIS AGREEMENT:
(A)
NON-PAYMENT.
BORROWER FAILS TO PAY WHEN
DUE, WHETHER BY ACCELERATION OR OTHERWISE, (I) THE PRINCIPAL, ANY INSTALLMENT OF
INTEREST (EXCEPT