BE
AN ELIGIBLE ACCOUNT, AND SHALL DISBURSE SAME IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 3.04 HEREOF.
IF ANY LOSS PROCEEDS ARE RECEIVED BY BORROWER, SUCH
LOSS PROCEEDS SHALL BE RECEIVED IN TRUST FOR LENDER, SHALL BE SEGREGATED FROM
OTHER FUNDS OF BORROWER, AND SHALL BE FORTHWITH PAID INTO THE CENTRAL ACCOUNT,
OR PAID TO LENDER TO HOLD IN A SEGREGATED BANK ACCOUNT AT THE BANK, IN EACH CASE
TO BE APPLIED OR DISBURSED IN ACCORDANCE WITH THE FOREGOING.
ANY LOSS PROCEEDS
MADE AVAILABLE TO BORROWER FOR RESTORATION IN ACCORDANCE HEREWITH, TO THE EXTENT
NOT USED BY BORROWER IN CONNECTION WITH, OR TO THE EXTENT THEY EXCEED THE COST
OF, SUCH RESTORATION, SHALL BE DEPOSITED INTO THE CENTRAL ACCOUNT, WHEREUPON
LENDER SHALL APPLY THE SAME TO REDUCE THE DEBT IN ACCORDANCE WITH THE TERMS OF
THE NOTE.
ARTICLE VI:
CONDEMNATION
SECTION 6.01.
CONDEMNATION.
(A)
BORROWER SHALL NOTIFY LENDER PROMPTLY OF THE
COMMENCEMENT OR THREAT OF ANY TAKING OF THE PROPERTY OR ANY PORTION THEREOF.
LENDER IS HEREBY IRREVOCABLY APPOINTED AS BORROWER'S ATTORNEY-IN-FACT, COUPLED
WITH AN INTEREST, WITH EXCLUSIVE POWER TO COLLECT, RECEIVE AND RETAIN THE
PROCEEDS OF ANY SUCH TAKING AS TO WHICH BORROWER IS OR MAY BE ENTITLED AND TO
MAKE ANY COMPROMISE OR SETTLEMENT IN CONNECTION WITH SUCH PROCEEDINGS (SUBJECT
TO BORROWER'S REASONABLE APPROVAL, EXCEPT AFTER THE OCCURRENCE AND DURING THE
CONTINUANCE OF AN EVENT OF DEFAULT, IN WHICH EVENT BORROWER'S APPROVAL SHALL NOT
BE REQUIRED), SUBJECT TO THE PROVISIONS OF THIS SECURITY INSTRUMENT; PROVIDED,
HOWEVER, THAT BORROWER MAY PARTICIPATE IN ANY SUCH PROCEEDINGS (WITHOUT REGARD
TO THE EXTENT OF THE TAKING) AND BORROWER SHALL BE AUTHORIZED AND ENTITLED TO
COMPROMISE OR SETTLE ANY SUCH PROCEEDING WITH RESPECT TO CONDEMNATION PROCEEDS
IN AN AMOUNT LESS THAN FIVE PERCENT (5%) OF THE LOAN AMOUNT.
BORROWER SHALL
EXECUTE AND DELIVER TO LENDER ANY AND ALL INSTRUMENTS REASONABLY REQUIRED IN
CONNECTION WITH ANY SUCH PROCEEDING PROMPTLY AFTER REQUEST THEREFOR BY LENDER.
EXCEPT AS SET FORTH ABOVE, BORROWER SHALL NOT ADJUST, COMPROMISE, SETTLE OR
ENTER INTO ANY AGREEMENT WITH RESPECT TO SUCH PROCEEDINGS WITHOUT THE PRIOR
CONSENT OF LENDER.
ALL CONDEMNATION PROCEEDS ARE HEREBY ASSIGNED TO AND SHALL
BE PAID TO LENDER TO BE APPLIED IN ACCORDANCE WITH THE TERMS HEREOF.
WITH
RESPECT TO CONDEMNATION PROCEEDS IN AN AMOUNT IN EXCESS OF FIVE PERCENT (5%) OF
THE LOAN AMOUNT, BORROWER HEREBY AUTHORIZES LENDER TO COMPROMISE, SETTLE,
COLLECT AND RECEIVE SUCH CONDEMNATION PROCEEDS, AND TO GIVE PROPER RECEIPTS AND
ACQUITTANCE THEREFOR.
SUBJECT TO THE PROVISIONS OF THIS ARTICLE VI, LENDER MAY
APPLY SUCH CONDEMNATION PROCEEDS (LESS ANY COST TO LENDER OF RECOVERING AND
PAYING OUT SUCH PROCEEDS, INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS'
FEES AND DISBURSEMENTS AND COSTS ALLOCABLE TO INSPECTING ANY REPAIR, RESTORATION
OR REBUILDING WORK AND THE PLANS AND SPECIFICATIONS THEREFOR) TOWARD THE PAYMENT
OF THE DEBT OR TO ALLOW SUCH PROCEEDS TO BE USED FOR THE WORK.
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(B)
"SUBSTANTIAL TAKING" SHALL MEAN (I) A TAKING OF SUCH PORTION OF
THE PROPERTY THAT WOULD, IN LENDER'S REASONABLE DISCRETION, LEAVE REMAINING