Application of Proceeds in an Event of Default. Subject to any senior Permitted Encumbrances, in the event of a default under this Declaration or any other Loan Document, ADFA may apply insurance and condemnation proceeds to the reduction of the indebtedness due under the HOME Loan in any manner selected by ADFA but, unless otherwise agreed by ADFA in writing, no application of such proceeds to the HOME Loan, or to other obligations secured by the Loan Documents, or any of them, shall delay, reduce, alter or otherwise affect any regularly scheduled payment with respect to the HOME Loan, or any such other obligations.
