Common use of Casualties; Insurance Proceeds Clause in Contracts

Casualties; Insurance Proceeds. Mortgagor shall give prompt written notice thereof to Mortgagee after the occurrence of any casualty to or in connection with the Mortgaged Property or any part thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of insurance must be payable to Mortgagee, and Mortgagor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to Mortgagee. If Mortgagor receives any proceeds of insurance resulting from such casualty, Mortgagor shall promptly pay over such proceeds to Mortgagee. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee is hereby authorized and empowered by Mortgagor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In the event of any damage or destruction of the Premises, Mortgagee shall apply all loss proceeds remaining after deductions of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' and adjustors' fees and expenses, to the restoration of the Improvements but only as repairs or replacements are effected and continuing expenses become due and payable; provided that the following conditions are met: (a) no Event of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notes, and any additional funds deposited by Mortgagor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfied. If any one or more of such conditions set forth herein have not been met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential), together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse Mortgagor from repairing or maintaining the Mortgaged Property as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged Property, regardless of whether or not there are insurance proceeds available to Mortgagor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee of any insurance proceeds will not cure or waive any default or notice of default under this Mortgage or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Trustor shall give prompt written notice thereof to Mortgagee Beneficiary after the occurrence happening of any casualty to or in connection with the Mortgaged Property Trust Estate or any part thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of insurance must shall be payable to MortgageeBeneficiary, and Mortgagor Trustor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to MortgageeBeneficiary. If Mortgagor Trustor receives any proceeds of insurance resulting from such casualty, Mortgagor Trustor shall promptly pay over such proceeds to MortgageeBeneficiary. Notwithstanding the aboveBeneficiary may participate in any proceedings and join Trustor in adjusting, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event settling or compromising any loss or event of Default existsloss covered by insurance, and (iii) any such adjustment settlement or compromise shall by subject to obtaining the casualty does consent of Beneficiary, which consent shall not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied unreasonably withheld. Subject to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Defaultnext following sentence, Mortgagee is hereby authorized and empowered by Mortgagor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In in the event of any damage or destruction of the PremisesPremises or the Improvements, Mortgagee Beneficiary shall apply all loss proceeds remaining after deductions deduction of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' ’ and adjustors' adjusters’ fees and expenses, to the restoration of the Improvements but only Improvements, upon such conditions as repairs Beneficiary shall reasonably determine (it being expressly agreed that Beneficiary may condition disbursement of such proceeds for restoration upon proof that an amount equal to the sum which Beneficiary is requested to disburse has theretofore been paid by Trustor, or replacements are effected and continuing expenses become is then due and payable; provided that payable for materials theretofore installed or work theretofore performed upon said property and properly includable in the following conditions are met: (a) no Event cost of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notesrestoration thereof), and any additional funds deposited by Mortgagor with Mortgagee balance of such proceeds shall be paid over to pay for such costs of reconstruction); (c) Mortgagee has determinedTrustor. If, in its sole discretion, that notwithstanding the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according foregoing to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfied. If any one or more of such conditions set forth herein have not been met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential), together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse Mortgagor from repairing or maintaining the Mortgaged Property as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged Property, regardless of whether or not there are insurance proceeds available to Mortgagor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee of any insurance proceeds will not cure or waive any default or notice of default under this Mortgage or invalidate any act done pursuant to such notice.contrary,

Casualties; Insurance Proceeds. Mortgagor Grantor shall give prompt written notice thereof to Mortgagee Grantee after the occurrence happening of any casualty to or in connection with the Mortgaged Property Collateral or any part thereof, whether or not covered by insuranceinsurance where the reasonably estimated loss or cost to repair equals or exceeds $50,000. In the event of such casualty, all proceeds of insurance must equal to or exceeding $50,000 shall be payable to MortgageeGrantee, on behalf of and as Collateral Agent for the Lenders, and Mortgagor Grantor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to MortgageeGrantee. If Mortgagor Grantor receives any proceeds of insurance resulting from such casualtycasualty equal to or exceeding $50,000, Mortgagor Grantor shall promptly pay over such proceeds to Mortgagee. Notwithstanding Grantee, subject to the aboveprovisions contained in any lease superior to this Security Deed and covering the portion of the Collateral which is damaged or destroyed by the casualty, provided that (i) which provisions require payment of such proceeds do not exceed $500,000 to a person other than Grantee. Grantee is hereby authorized to pay out such proceeds with interest as provided in this SECTION 1.05, all such interest to be the income of Grantor to be held by Grantee, on behalf of and as Collateral Agent for the Mortgaged PropertyLenders, (ii) no subject to the terms of this Security Deed. Grantor shall pay all taxes upon such income and agrees to indemnify and hold harmless Grantee and the Lenders against such liability. If an Event of Default exists, and (iii) then exists under the casualty does not materially impair the value terms of the Mortgaged PropertyLoan Documents or this Security Deed, Mortgagor may retain such proceeds (which Grantee shall not be applied obligated to make any further disbursements pursuant to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee is hereby authorized Credit Agreement and empowered by Mortgagor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In the event of any damage or destruction of the Premises, Mortgagee Grantee shall apply all loss proceeds remaining after deductions deduction of all reasonable expenses of and collection and settlement thereof, including, including without limitation, reasonable attorneys' and adjustors' fees and expenses, to the restoration of the Improvements but only as repairs or replacements are effected and continuing expenses become due and payable; provided that the following conditions are met: (a) no Event of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notes, and any additional funds deposited by Mortgagor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfied. If any one or more of such conditions set forth herein have not been met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after deductions as herein providedcharges, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential), Indebtedness together with all accrued interest thereon, in such order as Mortgagee may electinterest, notwithstanding that the outstanding balance may not be due and payable. Otherwise, Grantee shall disburse such proceeds to Grantor in periodic intervals, upon delivery by Grantor of bills and invoices for repair or replacement work, if Grantor submits a plan to Grantee for repair or replacement of the Collateral or Improvements thereon which were damaged, lost, stolen or destroyed within ninety (90) days after said casualty, and Grantee approves such plan, which approval shall not be unreasonably withheld or delayed. In the event Grantee disburses insurance proceeds to Grantor, Grantor shall use such funds solely in the manner and for the purposes set forth in the plan for repair or replacement of the Collateral or Improvements thereon. Any portion of such funds not used for such repair or replacement shall be delivered to Grantee. If, however, Grantee does not receive such plan from Grantor within ninety (90) days, Grantee shall apply such insurance proceeds to the indebtedness. Nothing herein contained will shall be deemed to excuse Mortgagor Grantor from repairing or maintaining the Mortgaged Property Collateral as provided in Section 1.2 SECTION 1.02 hereof or restoring all damage or destruction to the Mortgaged PropertyCollateral, regardless of whether or not there are insurance proceeds available to Mortgagor Grantor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee Grantee of any insurance proceeds will shall not cure or waive any default Potential Event of Default or notice Event of default Default under this Mortgage Security Deed or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Borrower shall give prompt written notice thereof to Mortgagee Lender after the occurrence of any casualty to or in connection with the Mortgaged Property Trust Estate or any part thereof, whether or not covered by insurance, to the extent the amount claimed on account of such casualty is in excess of $500,000.00 (the “Threshold Amount”). In the event of such casualtycasualty in excess of the Threshold Amount, all proceeds of insurance must be payable to MortgageeLender, and Mortgagor Borrower hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to MortgageeLender. If Mortgagor Borrower receives any proceeds of insurance resulting from such casualtycasualty in excess of the Threshold Amount, Mortgagor Borrower shall promptly pay over such proceeds to MortgageeLender. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee Lender is hereby authorized and empowered by Mortgagor Borrower to participate in the settlement, adjustment or compromise of any and all claims for loss, damage or destruction under any policy or policies of insurance in excess of the Threshold Amount and following an Event of Default is authorized and empowered by Borrower to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. So long as no Event of Default has occurred and is continuing, Borrower shall be entitled to receive and use any and all loss proceeds where the amount claimed is under the Threshold Amount to the restoration of the Improvements. In the event of any damage or destruction of the PremisesPremises in excess of the Threshold Amount, Mortgagee Lender shall apply all loss proceeds remaining after deductions of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' and adjustors' fees and expenses, to the restoration of the Improvements but only as repairs or replacements are effected and continuing expenses become due and payable; provided that the following conditions are met: (a) no Event of Default exists that has not been curedexists; (b) the Loan is in Balance balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the NotesNote, and any additional funds deposited by Mortgagor Borrower with Mortgagee Lender to pay for such costs of reconstruction); (c) Mortgagee Lender has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee Lender and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee Lender has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee Lender has determined, in its sole discretion, that after the reconstruction work is completed, the ratio value of the then applicable Committed Amount to Project will not be less than the then "As-Is" original appraised value (based on evidence reasonably satisfactory to Mortgageeof the Project, including, if required by Mortgagee or Mortgagor, updated Appraisals as approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfiedLender. If any one or more of such conditions set forth herein have not been met, Mortgagee Lender will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee Lender shall apply all such loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential)Note, together with all accrued interest thereon, in such order as Mortgagee Lender may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse Mortgagor Borrower from repairing or maintaining the Mortgaged Property Trust Estate as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged PropertyTrust Estate, regardless of whether or not there are insurance proceeds available to Mortgagor Borrower or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee Lender of any insurance proceeds will not cure or waive any default or notice of default under this Mortgage Deed of Trust or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Trustor shall give prompt written notice thereof to Mortgagee Beneficiary after the occurrence of any casualty to or in connection with the Mortgaged Property Trust Estate or any part thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of insurance required under the Exhibit "B" must be payable to MortgageeBeneficiary, and Mortgagor Trustor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to MortgageeBeneficiary. If Mortgagor Trustor receives any proceeds of insurance required under Exhibit "B" resulting from such casualty, Mortgagor Trustor shall promptly pay over such proceeds to MortgageeBeneficiary. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee Beneficiary is hereby authorized and empowered by Mortgagor Trustor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance, provided, Trustor shall have the right to approve such settlement so long as there is no outstanding Event of Default. Notwithstanding anything to the contrary above, if any new improvements are constructed upon the Land which do not replace any of the Improvements described on Exhibit "C" attached hereto (the "New Improvements"), Beneficiary shall in no way be entitled to receive any of the insurance proceeds which are attributable to the New Improvements. In the event of any damage or destruction of the PremisesProperty, Mortgagee Beneficiary shall apply all loss proceeds remaining after deductions of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' and adjustors' fees and expenses, to the restoration of the Improvements but only as repairs or replacements are effected and continuing expenses become due and payable; provided that the following conditions are met: (a) no Event of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notes, and any additional funds deposited by Mortgagor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfied. If any one or more of such conditions set forth herein have not been in Section 1.17 hereof are met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential), together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse Mortgagor Trustor from repairing or maintaining the Mortgaged Property Trust Estate as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged PropertyTrust Estate, regardless of whether or not there are insurance proceeds available to Mortgagor Trustor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee Beneficiary of any insurance proceeds will not cure or waive any default or notice of default under this Mortgage Deed of Trust or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Trustor shall give prompt written notice thereof to Mortgagee Authority and Beneficiary after the occurrence happening of any casualty to or in connection with the Mortgaged Property Land, the Improvements, or any part thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of insurance must shall be payable to Mortgageethe Beneficiary, whether required by the Loan Documents or otherwise, and Mortgagor Trustor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to Mortgageethe Beneficiary, for the benefit of the Project. If Mortgagor Trustor receives any proceeds of insurance resulting from such casualty, Mortgagor whether required by the Loan Documents or otherwise, Trustor shall promptly pay over such proceeds to Mortgagee. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee is hereby authorized and empowered by Mortgagor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insuranceBeneficiary. In the event of any damage or destruction of the PremisesLand or the Improvements, Mortgagee Beneficiary, at the written direction of Authority, shall apply all loss proceeds remaining after deductions deduction of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' and adjustors' fees and expensesexpenses of attorneys and adjusters, to the restoration of the Improvements Improvements, but only as repairs or replacements are effected and continuing expenses become due and payable; payable and provided that the following conditions are met: (a) no Event of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notes, and any additional funds deposited by Mortgagor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined conditions specified in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is Agreement with respect thereto have been satisfied. If any one or more of such conditions set forth herein in the Loan Agreement have not been met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee Beneficiary shall apply all loss proceeds, after deductions as herein provided, to the repayment prepayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential)Note, together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will shall be deemed to excuse Mortgagor Trustor from repairing or maintaining the Mortgaged Property Land and the Improvements as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged PropertyLand or the Improvements, regardless of whether or not there are insurance proceeds available to Mortgagor Trustor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee Beneficiary, at the written direction of Authority, of any insurance proceeds will shall not cure or waive any default Default or notice of default under this Mortgage Deed of Trust or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Grantor shall give prompt written notice thereof to Mortgagee after the occurrence of any casualty to or in connection with the Mortgaged Property or any part thereof, whether or not covered by insurance. In the event of such casualty, all proceeds of insurance must be payable to Mortgagee, and Mortgagor Grantor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to Mortgagee. If Mortgagor Grantor receives any proceeds of insurance resulting from such casualty, Mortgagor Grantor shall promptly pay over such proceeds to Mortgagee. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee is hereby authorized and empowered by Mortgagor Grantor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In the event of any damage or destruction of the Premises, Mortgagee shall apply all loss proceeds remaining after deductions of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' ’ and adjustors' ’ fees and expenses, to the restoration of the Improvements but only as repairs or replacements are effected and continuing expenses become due and payable; provided that the following conditions are met: (a) no Event of Default exists that has not been curedexists; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the NotesNote, and any additional funds deposited by Mortgagor Grantor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio value of the then applicable Committed Amount to Project will not be less than the then "As-Is" original appraised value (based on evidence reasonably satisfactory to Mortgageeof the Project, including, if required by Mortgagee or Mortgagor, updated Appraisals as approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is satisfied. If any one or more of such conditions set forth herein have not been met, Mortgagee will not be obligated to make any further disbursements pursuant to the Loan Agreement, and Mortgagee shall apply all loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential)Note, together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payable. Nothing herein contained will be deemed to excuse Mortgagor Grantor from repairing or maintaining the Mortgaged Property as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged Property, regardless of whether or not there are insurance proceeds available to Mortgagor Grantor or whether any such proceeds are sufficient in amountamount (provided Mortgagee makes such proceeds available to Grantor for such purpose), and the application or release by Mortgagee of any insurance proceeds will not cure or waive any default or notice of default under this Mortgage or invalidate any act done pursuant to such notice.

Casualties; Insurance Proceeds. Mortgagor Trustor shall give prompt written notice thereof to Mortgagee Beneficiary after the occurrence happening of any casualty to or in connection with the Mortgaged Property Property, the Improvements, or any part thereof, whether or not covered by insurance. In insurance subject to the provisions of any senior liens, in the event of such casualty, all proceeds of insurance must shall be payable to MortgageeBeneficiary, whether required by the Loan Documents or otherwise, and Mortgagor Trustor hereby authorizes and directs any affected insurance company to make payment of such proceeds directly to MortgageeBeneficiary. If Mortgagor Trustor receives any proceeds of insurance resulting from such casualty, Mortgagor whether required by the Loan Documents or otherwise, Trustor shall promptly pay over such proceeds to MortgageeBeneficiary, except where the insurance proceeds for such casualty are less than $50,000. Notwithstanding the above, provided that (i) such proceeds do not exceed $500,000 for the Mortgaged Property, (ii) no Event of Default exists, and (iii) the casualty does not materially impair the value of the Mortgaged Property, Mortgagor may retain such proceeds (which shall be applied to the restoration of the Improvements to the extent required to repair a casualty). At all times during the existence of an Event of Default, Mortgagee Beneficiary is hereby authorized and is empowered by Mortgagor Trustor to settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance. In the event of any damage or destruction of the PremisesProperty or the Improvements, Mortgagee Beneficiary shall apply all loss proceeds remaining after deductions deduction of all expenses of collection and settlement thereof, including, without limitation, reasonable attorneys' fees and expenses of attorneys and adjustors' fees and expenses, to the restoration of the Improvements Improvements, but only as repairs or replacements are effected and continuing expenses become due and payable; payable and provided that the following conditions are met: (a) no Event of Default exists that has not been cured; (b) the Loan is in Balance (taking into account all costs of reconstruction and the amount of the loss proceeds, if any, the amount of operating expenses and interest that will accrue under the Notes, and any additional funds deposited by Mortgagor with Mortgagee to pay for such costs of reconstruction); (c) Mortgagee has determined, in its sole discretion, that the damage or destruction can be repaired and that the damaged portion of the Improvements can be completed according to the requirements of the Loan Agreement; (d) Mortgagee and all applicable governmental authorities have approved the final plans and specifications for reconstruction of the damaged portion of the Improvements; (e) Mortgagee has approved, for the reconstruction of the damaged portion of the Improvements, in its sole discretion, the budget, the construction schedule and the construction contract; and (f) Mortgagee has determined, in its sole discretion, that after the reconstruction work is completed, the ratio of the then applicable Committed Amount to the then "As-Is" appraised value (based on evidence reasonably satisfactory to Mortgagee, including, if required by Mortgagee or Mortgagor, updated Appraisals approved by Mortgagee, which approval shall not be withheld unreasonably) of the Properties does not exceed the Maximum Committed Amount Leverage Ratio (as defined conditions specified in the Loan Agreement), provided Mortgagor may pay down the outstanding principal amount of the Loan, or cancel applicable undisbursed amount(s) of the Revolving Portion so that the Maximum Committed Amount Leverage Ratio is Documents with respect thereto have been satisfied. If any one or more of such conditions set forth herein have in the Loan Documents has not been met, Mortgagee will Beneficiary shall not be obligated to make any further disbursements pursuant to the Loan Agreement, Note and Mortgagee Beneficiary shall apply all loss proceeds, after deductions as herein provided, to the repayment of the outstanding balance of the Notes (without payment of a prepayment premium other than the Interest Differential)any indebtedness thereunder, together with all accrued interest thereon, in such order as Mortgagee may elect, notwithstanding that the outstanding balance may not be due and payablepayable and the Agreement shall terminate. Nothing herein contained will shall be deemed to excuse Mortgagor Trustor from repairing or maintaining the Mortgaged Property and the Improvements as provided in Section 1.2 hereof or restoring all damage or destruction to the Mortgaged PropertyProperty or the Improvements, regardless of whether or not there are insurance proceeds available to Mortgagor Trustor or whether any such proceeds are sufficient in amount, and the application or release by Mortgagee Beneficiary of any insurance proceeds will shall not cure or waive any default or Event of Default nor any notice of default under this Mortgage Deed of Trust or invalidate any act done pursuant to such notice.