Common use of DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS Clause in Contracts

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in the sole opinion of Mortgagee, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that any insurance or condemnation proceeds are so applied to the restoration or repair of the Mortgaged Property, the restoration or repair shall be done under the supervision of an architect acceptable to Mortgagee and pursuant to plans and specifications approved by Mortgagee and subject to such other terms, provisions, requirements, safeguards and disbursement procedures as Mortgagee may require. In such case the proceeds shall be held by Mortgagee for such purposes and will from time to time be disbursed by Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as Mortgagee may require to assure completion in accordance with the approved plans and specifications and free of liens or claims. Any insurance or condemnation proceeds which are not applied to repair or restoration of the Mortgaged Property and any surplus which may remain after payment of all costs of restoration or repair may at the option of Mortgagee be applied to reduction of that portion of the Indebtedness then most remotely to be paid, whether due or not, or returned to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of Mortgagee.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in So long as the sole opinion provisions of Mortgageethis Section 13 are complied with, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that any insurance or condemnation proceeds are so received in accordance with Sections 11 or 12 of this Mortgage shall be applied to the restoration or repair of the Mortgaged Property, the . Such restoration or repair shall be done under the supervision of an architect acceptable to the Mortgagee and pursuant to site and building plans and specifications reasonably approved by Mortgagee and subject to such other terms, provisions, requirements, safeguards and disbursement procedures as Mortgagee may requirethe Mortgagee. In such case the The proceeds shall be held by the Mortgagee for such purposes and will from time to time be disbursed by the Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as the Mortgagee may reasonably require to assure completion and in accordance with standard construction loan procedures and sound lending practices. Prior to the approved plans and specifications and free payment or application of liens insurance proceeds or claims. Any insurance a condemnation or condemnation proceeds which are not applied eminent domain award to the repair or restoration of the Improvements upon the Mortgaged Property Property, the Mortgagee shall be entitled to receive the following: A. Evidence that no Event of Default exists under any of the terms, covenants and any surplus which conditions of this Mortgage, the Loan Agreement, the Note, or other collateral security documents. B. Reasonably satisfactory proof that such Improvements have been fully restored, or that the expenditure of money as may remain be received from such insurance proceeds or eminent domain award will be sufficient to repair, restore or rebuild the Mortgaged Property, free and clear of all liens, except the lien of this Mortgage and the Permitted Encumbrances. In the event such insurance proceeds or eminent domain award shall be insufficient to repair, restore or rebuild the said Improvements, the Mortgagor or its lessee shall deposit with the Mortgagee funds equaling such deficiency, which, together with the insurance proceeds or eminent domain award, shall be sufficient to restore, repair and rebuild the Mortgaged Property. C. A statement of the Mortgagor’s architect or contractor, certifying the extent of the repair and restoration completed to the date thereof, and that such repairs, restoration and rebuilding have been performed to date in conformity with the plans and specifications approved by the Mortgagee, together with appropriate evidence of the cost for labor or materials furnished to the Mortgaged Property. Total or partial lien waivers shall be immediately delivered to Lender after payment of such costs are made and if payments are to be made as work is completed, lien waivers shall be delivered for the payment(s) already made prior to any future payment(s). D. Such insurance, in such amounts, issued by such company or companies and in such forms and of such substance and effect, as are reasonably required by the Mortgagee. In the event the Mortgagor shall fail to restore, repair or rebuild the Improvements upon the Mortgaged Property within a reasonable time, then the Mortgagee, at its option, and upon not less than sixty (60) days’ written notice to the Mortgagor, may commence to restore, repair or rebuild the Improvements for or on behalf of said Mortgagor, and for such purpose, may perform all costs of necessary acts to accomplish such restoration, repair or rebuilding. In the event insurance proceeds or an eminent domain award shall exceed the amount necessary to complete the repair, restoration or repair may the rebuilding of the Improvements upon the Mortgaged Property, such excess may, at the option of Mortgagee Mortgagee’s option, be applied on account of the last maturing installments of the Indebtedness, irrespective of whether such installments are then due and payable, or be returned to reduction the Mortgagor. In the event the Mortgagor shall fail to restore, repair or rebuild the Improvements upon the Mortgaged Property within a reasonable time, and if the Mortgagee does not restore, repair or rebuild the said Improvements as herein provided, then the Mortgagee may, at its option, apply all or any part of that portion the insurance proceeds or condemnation or eminent domain award on account of the last maturing installments of the Indebtedness whether then most remotely to be paid, whether due or not, without application of a prepayment premium, or returned return the same to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of MortgageeMortgagor.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in the sole opinion of Mortgagee, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that Should any insurance or condemnation proceeds are so be applied to the restoration or repair of the Mortgaged PropertyPremises in accordance with this Article 5, the restoration or repair shall be done under the supervision of an architect acceptable to Mortgagee and pursuant to site and building plans and specifications approved by Mortgagee and subject to such other termsMortgagee, provisionsthe approval of neither of which shall be unreasonably withheld, requirements, safeguards and disbursement procedures as Mortgagee may requireconditioned or delayed. In such case the The proceeds shall be held by Mortgagee for such purposes and will from time to time be disbursed by Mortgagee through a title company or other servicing agent acceptable to Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as Mortgagee reasonably may require to assure completion and in accordance with standard construction loan procedures. All costs and expenses associated with the approved plans and specifications and free disbursement of liens such proceeds shall be paid by Mortgagor. Prior to the payment or claims. Any application of insurance proceeds or a condemnation proceeds which are not applied or eminent domain award to the repair or restoration of the Mortgaged Property improvements upon the Premises, Mortgagee shall be entitled to receive the following: (a) Evidence that no Event of Default exists under any of the terms, covenants and any surplus which conditions of this Mortgage, the Note, or other collateral security documents. (b) Evidence that all leasing requirements for the Premises as established by Mortgagee, if any, have been satisfied. (c) Satisfactory proof that such improvements have been fully restored, or that the expenditure of money as may remain after payment be received from such insurance proceeds or eminent domain award will be sufficient to repair, restore or rebuild the Premises, free and clear of all costs liens, except the lien of this Mortgage. In the event such insurance proceeds or eminent domain award shall be insufficient to repair, restore or rebuild the said improvements, Mortgagor or its lessee shall deposit with Mortgagee, or a title company designated by Mortgagee, funds equaling such deficiency, which, together with the insurance proceeds or eminent domain award, shall be sufficient to restore, repair and rebuild the Premises. (d) A statement of Mortgagor’s architect, certifying the extent of the repair and restoration completed to the date thereof, and that such repairs, restoration and rebuilding have been performed to date in conformity with the plans and specifications approved by Mortgagee, together with appropriate evidence of payment for labor or materials furnished to the Premises, and total or partial lien waivers substantiating such payments. (e) A written acknowledgment from the insurer stating that the insurer does not contest or have any defense to or offset against the claim for which the proceeds are being paid. (f) Such insurance, in such amounts, issued by such company or companies and in such forms and substance, as reasonably are required by Mortgagee. Loan No. 09090 22 In the event Mortgagor shall fail to commence and diligently pursue the restoration, repair or rebuilding of the improvements upon the Premises, then Mortgagee, at its option, and upon not less than thirty (30) days written notice to Mortgagor, may commence to restore, repair or rebuild the said improvements for or on behalf of said Mortgagor, and its tenants, and for such purpose, may perform all necessary acts to accomplish such restoration, repair or rebuilding. In the event insurance proceeds or an eminent domain award shall exceed the amount necessary to complete the repair, restoration or repair may the rebuilding of the improvements upon the Premises, such excess may, at the option of Mortgagee Mortgagee’s option, be applied on account of the next maturing installments of the Indebtedness, irrespective of whether such installments are then due and payable without application of a Reinvestment Charge or Default Premium, or be returned to Mortgagor. In the event Mortgagor shall fail to commence and diligently pursue the restoration, repair or rebuilding of the improvements upon the Premises, and if Mortgagee does not restore, repair or rebuild the said improvements as herein provided, then Mortgagee may, at its option, apply all or any part of the insurance proceeds or condemnation or eminent domain award in reduction of principal, provided that portion such application to reduce the principal shall not postpone any due date of any regularly scheduled payment due under the Indebtedness then most remotely to be paidNote, whether due or notwithout application of a Reinvestment Charge, or returned return the same to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of MortgageeMortgagor.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in the sole opinion of Mortgagee, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that Should any insurance or condemnation Condemnation proceeds are so be applied to the restoration or repair of the Mortgaged Property, Premises in accordance with this Article 5 the restoration or repair shall be done under the supervision of an architect reasonably acceptable to Mortgagee (or, at Mortgagee's discretion, an engineer reasonably acceptable to Mortgagee) and pursuant to site and building plans and specifications reasonably approved by Mortgagee Mortgagee. The proceeds from insurance or Condemnation, after payment of costs and subject to such other termsexpenses of collection ("Net Proceeds"), provisions, requirements, safeguards and disbursement procedures as Mortgagee may require. In such case the proceeds shall be held by Mortgagee for such purposes and will from time to time be disbursed by Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as Mortgagee may require to assure completion and in accordance with the approved plans and specifications and free of liens or claimsstandard construction loan procedures. Any insurance or condemnation proceeds which are not applied to repair or restoration of the Mortgaged Property and any surplus which may remain after payment of all costs of restoration or repair Net Proceeds may at the option of Mortgagee be applied disbursed through a Litle insurance company selected by Mortgagee and at the sole cost of Mortgagor. Prior to reduction making Net Proceeds available for the payment of that portion costs of repair or restoration of the Indebtedness improvements upon the Premises, Mortgagee shall be entitled to receive the following: (a) Evidence that no Event of Default exists under any of the terms, covenants and conditions of this Mortgage, the Note, or other Loan Documents. (b) Evidence that all leasing requirements for the Premises as established by Mortgagee have been met. (c) Satisfactory proof that all improvements have been fully restored, or, if Mortgagee approves disbursements in installments, that the undisbursed proceeds will be sufficient to pay the cost of repair, restoration or rebuilding the improvements located on the Premises free and clear of all liens, except the lien of this Mortgage. In the event Net Proceeds shall be insufficient to pay for such repairs, restoration or rebuilding, Mortgagor shall deposit with Mortgagee funds equaling such deficiency, which, together with the Net Proceeds, shall be sufficient to pay for restoration, repair and rebuilding. (d) A statement of Mortgagor's architect, certifying the extent of the repair and restoration completed to the date thereof, and that such repairs, restoration and rebuilding have been performed to date in conformity with the plans and specifications that have been approved by Mortgagee, together with appropriate evidence of payment for labor or materials furnished to the Premises, and total or partial lien waivers substantiating such payments. (e) A waiver of subrogation from any insurer to the effect that such insurer has no liability against Mortgagor or the then most remotely owner or other insured under the policy of insurance in question. (f) Such performance and payment bonds, and such insurance, in such amounts, issued by such company or companies and in such forms and substance, as are reasonably required by Mortgagee. (g) Evidence that zoning, building and other necessary permits and approvals have been obtained. (h) An opinion of Mortgagor's counsel in form and content reasonably acceptable to Mortgagee that such repair and reconstruction will not violate any authority or agreement to which Mortgagor may be subject. (i) Reasonably satisfactory evidence is delivered to Mortgagee that the improvements can be rebuilt substantially to the same as those originally financed and can with restoration and repair continue to be paid, whether due operated for the purposes utilized prior to such damage. (j) Evidence that the then current Loan balance shall not exceed seventy five percent (75%) of the appraised value of the Premises after such restoration or not, or returned to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of Mortgageerepair.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in the sole opinion of Mortgagee, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that Should any insurance or condemnation Condemnation proceeds are so be applied to the restoration or repair of the Mortgaged PropertyPremises in accordance with this Article 5, the restoration or repair shall be done under the supervision of an architect acceptable to Mortgagee Beneficiary (or, at Beneficiary's discretion, an engineer acceptable to Beneficiary) and pursuant to site and building plans and specifications approved by Mortgagee Beneficiary. The proceeds from insurance or condemnation, after payment of costs and subject to such other termsexpenses of collection ("Net Proceeds"), provisions, requirements, safeguards and disbursement procedures as Mortgagee may require. In such case the proceeds shall be held by Mortgagee Beneficiary for such purposes and will from time to time be disbursed by Mortgagee Beneficiary to defray the costs of such restoration or repair under such safeguards and controls as Mortgagee Beneficiary may require to assure completion and in accordance with standard construction loan procedures. Net Proceeds may at the approved plans option of Beneficiary be disbursed through a title insurance company selected by Beneficiary and specifications and free at the sole cost of liens or claimsGrantor. Any insurance or condemnation proceeds which are not applied Prior to making Net Proceeds available for the payment of costs of repair or restoration of the Mortgaged Property improvements upon the Premises, Beneficiary shall be entitled to receive the following: (a) Evidence that no Event of Default exists under any of the terms, covenants and conditions of this Deed of Trust, the Note, or any surplus which may remain after payment other Loan Documents. (b) Evidence that all leasing requirements for the Premises as established by Beneficiary have been met. (c) Satisfactory proof that all improvements have been fully restored, or that the expenditure of Net Proceeds will be sufficient to pay the cost of repair, restoration or rebuilding of the improvements located on the Premises, free and clear of all costs liens, except the lien of this Deed of Trust. In the event Net Proceeds shall be insufficient to pay the cost for such repair, restoration or repair may at rebuilding, Grantor shall deposit with Beneficiary funds equaling such deficiency, which, together with the option of Mortgagee Net Proceeds, shall be applied sufficient to reduction of that portion pay for such repair, restoration and rebuilding of the Indebtedness Premises. (d) A statement of Grantor's architect, certifying the extent of the repair and restoration completed to the date thereof, and that such repair, restoration and rebuilding have been performed to date in conformity with the plans and specifications that have been approved by Beneficiary, together with evidence satisfactory to Beneficiary of payment for labor and materials furnished to the Premises, and total or partial lien waivers substantiating such payments. (e) A waiver of subrogation from any insurer to the effect that such insurer has no liability against Grantor or the then most remotely owner or other insured under the policy of insurance in question. (f) Evidence that zoning, building and other necessary permits and approvals have been obtained. (g) An opinion of Grantor's counsel in form and content acceptable to Beneficiary that such repair and reconstruction will not violate any authority or agreement to which Grantor may be subject. (h) Satisfactory evidence is delivered to Beneficiary that the improvements can be rebuilt to substantially to the same condition as when originally financed and can with restoration and repair continue to be paid, whether due operated for the purposes utilized prior to such damage. (i) Evidence that the then current loan balance shall not exceed seventy-five percent (75%) of the appraised value of the Premises after such restoration or not, or returned to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of Mortgageerepair.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in the sole opinion of Mortgagee, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that Should any insurance or condemnation proceeds are so be applied to the restoration or repair of the Mortgaged PropertyPremises in accordance with this Article 5, the restoration or repair shall be done under the supervision of an architect acceptable to the Mortgagee and pursuant to site and building plans and specifications approved by Mortgagee and subject to such other terms, provisions, requirements, safeguards and disbursement procedures as Mortgagee may requirethe Mortgagee. In such case the The proceeds shall be held by the Mortgagee for such purposes and will from time to time be disbursed by the Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as the Mortgagee may require to assure completion and in accordance with standard construction loan procedures. Prior to the approved plans and specifications and free payment or application of liens insurance proceeds or claims. Any insurance a condemnation or condemnation proceeds which are not applied eminent domain award to the repair or restoration of the Mortgaged Property improvements upon the Premises, the Mortgagee shall be entitled to receive the following: Evidence that no Event of Default exists under any of the terms, covenants and any surplus which conditions of this Mortgage, the Note, or other collateral security documents. Evidence that all leasing requirements for the Premises as established by the Mortgagee have been met. Reasonably satisfactory proof that such improvements have been fully restored, or that the expenditure of money as may remain after payment be received from such insurance proceeds or eminent domain award will be sufficient to repair, restore or rebuild the Premises, free and clear of all costs liens, except the lien of restoration this Mortgage. In the event such insurance proceeds or repair may at eminent domain award shall be insufficient to repair, restore or rebuild the option of Mortgagee be applied to reduction of that portion of said improvements, the Indebtedness then most remotely to be paid, whether due or not, or returned to Mortgagor or other person entitled theretoits lessee shall deposit with the Mortgagee funds equaling such deficiency, which, together with the choice of application insurance proceeds or eminent domain award, shall be sufficient to be solely at restore, repair and rebuild the discretion of MortgageePremises.

DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. If (i) in So long as the sole opinion provisions of Mortgageethis Section 13 are complied with, the proceeds from any insurance claim or condemnation award received pursuant to Section 3.01 or 3.02 (after payment of expenses as contemplated by such Sections), together with any monies deposited by Mortgagee with Mortgagor for the purposes of restoration or repair as hereinafter set forth are sufficient to repair and restore the Mortgaged Property to substantially the same condition as existed immediately prior to such damage, destruction or condemnation, and (ii) Mortgagor is not then in default under the Note, the Loan Agreement or this Mortgage, and (iii) such repair or restoration shall not result in the creation of any lien or encumbrance on the Mortgaged Property, other than Permitted Encumbrances, and (iv) Mortgagor pays Mortgagee's expenses in connection with the foregoing, and (v) the Casualty occurs at least twelve (12) months prior to the expiration of the Note, then Mortgagor shall have the right to use such proceeds to repair and restore the Mortgaged Property; provided, however, that Mortgagee shall have the right to approve (which approval shall not be unreasonably withheld) the plans for such repair and restoration. In the event that any insurance or condemnation proceeds are so received in accordance with Sections 11 or 12 of this Mortgage shall be applied to the restoration or repair of the Mortgaged Property, the . Such restoration or repair shall be done under the supervision of an architect acceptable to the Mortgagee and pursuant to site and building plans and specifications reasonably approved by Mortgagee and subject to such other terms, provisions, requirements, safeguards and disbursement procedures as Mortgagee may requirethe Mortgagee. In such case the The proceeds shall be held by the Mortgagee for such purposes and will from time to time be disbursed by the Mortgagee to defray the costs of such restoration or repair under such safeguards and controls as the Mortgagee may reasonably require to assure completion and in accordance with standard construction loan procedures and sound lending practices. Prior to the approved plans and specifications and free payment or application of liens insurance proceeds or claims. Any insurance a condemnation or condemnation proceeds which are not applied eminent domain award to the repair or restoration of the Improvements upon the Mortgaged Property Property, the Mortgagee shall be entitled to receive the following: A. Evidence that no Event of Default exists under any of the terms, covenants and any surplus which conditions of this Mortgage, the Loan Agreement, the Note, or other collateral security documents. B. Reasonably satisfactory proof that such Improvements have been fully restored, or that the expenditure of money as may remain be received from such insurance proceeds or eminent domain award will be sufficient to repair, restore or rebuild the Mortgaged Property, free and clear of all liens, except the lien of this Mortgage and the Permitted Encumbrances. In the event such insurance proceeds or eminent domain award shall be insufficient to repair, restore or rebuild the said Improvements, the Mortgagor or its lessee shall deposit with the Mortgagee funds equaling such deficiency, which, together with the insurance proceeds or eminent domain award, shall be sufficient to restore, repair and rebuild the Mortgaged Property. C. A statement of the Mortgagor’s architect or contractor, certifying the extent of the repair and restoration completed to the date thereof, and that such repairs, restoration and rebuilding have been performed to date in conformity with the plans and specifications approved by the Mortgagee, together with appropriate evidence of the cost for labor or materials furnished to the Mortgaged Property. Total or partial lien waivers shall be immediately delivered to Lender after payment of such costs are made and if payments are to be made as work is completed, lien waivers shall be delivered for the payment(s) already made prior to any future payment(s). D. Such insurance, in such amounts, issued by such company or companies and in such forms and of such substance and effect, as are reasonably required by the Mortgagee. In the event the Mortgagor shall fail to restore, repair or rebuild the Improvements upon the Mortgaged Property within a reasonable time, then the Mortgagee, at its option, and upon not less than sixty (60) days’ written notice to the Mortgagor, may commence to restore, repair or rebuild the Improvements for or on behalf of said Mxxxxxxxx, and for such purpose, may perform all costs of necessary acts to accomplish such restoration, repair or rebuilding. In the event insurance proceeds or an eminent domain award shall exceed the amount necessary to complete the repair, restoration or repair may the rebuilding of the Improvements upon the Mortgaged Property, such excess may, at the option of Mortgagee Mortgagee’s option, be applied on account of the last maturing installments of the Indebtedness, irrespective of whether such installments are then due and payable, or be returned to reduction the Mortgagor. In the event the Mortgagor shall fail to restore, repair or rebuild the Improvements upon the Mortgaged Property within a reasonable time, and if the Mortgagee does not restore, repair or rebuild the said Improvements as herein provided, then the Mortgagee may, at its option, apply all or any part of that portion the insurance proceeds or condemnation or eminent domain award on account of the last maturing installments of the Indebtedness whether then most remotely to be paid, whether due or not, without application of a prepayment premium, or returned return the same to Mortgagor or other person entitled thereto, the choice of application to be solely at the discretion of MortgageeMortgagor.