Common use of Adjustment of Loss; Application of Proceeds Clause in Contracts

Adjustment of Loss; Application of Proceeds. Subject to the rights of the First Beneficiary under the First Priority Documents (as hereinafter defined), the Beneficiaries are hereby authorized and empowered, at their option, to adjust or compromise any loss under any insurance policies covering the Property and to collect and receive the proceeds from any such policy or policies in accordance with the terms of the respective Loan Agreements. Grantor hereby irrevocably appoints each Beneficiary as an attorney-in-fact of Grantor for the purposes set forth in the preceding sentence. Notwithstanding the foregoing or anything to the contrary contained herein, the entire amount of such proceeds, awards or compensation shall be applied as provided in the First Priority Documents until the indebtedness secured by the First Deed of Trust has been repaid in full or the lien of the First Deed of Trust has been released by the First Beneficiary.