Common use of Escrow Fund for Condemnation and Insurance Proceeds Clause in Contracts

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(C) and 1.4(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be satisfactory to Beneficiary and Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary at Trustor’s expense, subject to revision as restorations are made, Trustor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary and Trustor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor so long as the restoration work is being diligently performed by Trustor and only after: (i) Trustor has delivered to Beneficiary, and Beneficiary has approved, the plans and specifications for the restoration of the Property; (ii) Trustor has executed a contract acceptable to Beneficiary with a general contractor acceptable to Beneficiary for the restoration of the Property; (iii) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv) Trustor has furnished Beneficiary with an endorsement to its title policy showing no additional exceptions; and (v) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Proceeds may be applied to the prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (“"Proceeds”") shall be deposited in an interest bearing escrow fund (“"Escrow Fund”"). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary Mortgagee and TrustorMortgagor. The costs and fees of such escrow agent shall be paid by TrustorMortgagor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s 's or engineer’s 's opinion obtained by Beneficiary Mortgagee at Trustor’s Mortgagor's expense, subject to revision as restorations are made, Trustor Mortgagor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s 's or engineer’s 's estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary Mortgagee or other cash equivalent acceptable to BeneficiaryMortgagee. The Trustor’s Mortgagor's funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary Mortgagee and Trustor Mortgagor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Mortgagor so long as the restoration work is being diligently performed by Trustor Mortgagor and only after: after (i1) Trustor Mortgagor has delivered to Beneficiary, Mortgagee and Beneficiary Mortgagee has approved, approved the plans and specifications for the restoration of the Property; (ii2) Trustor Mortgagor has executed a contract acceptable to Beneficiary Mortgagee with a general contractor acceptable to Beneficiary Mortgagee for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors and suppliers which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor contractor, subcontractor or subcontractorsupplier; (iv4) Trustor Mortgagor has furnished Beneficiary Mortgagee with an endorsement to its title policy showing no additional exceptions; and (v5) Trustor Mortgagor has deposited its funds in the Escrow Fund as provided in this Paragraph Section and has submitted such other documents and information as may be reasonably requested by Beneficiary Mortgagee to determine that the work to be paid for has been performed in accordance with the plans and specifications reasonably approved by BeneficiaryMortgagee. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor Mortgagor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or BeneficiaryMortgagee. Any failure by Trustor Mortgagor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph Section upon demand by Beneficiary Mortgagee shall constitute a Performance Default, as hereinafter defined. (B) Any Condemnation Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Trustor Mortgagor to the extent of any funds of Trustor’s Mortgagor's contributed to the restoration pursuant to Paragraph 1.5, provided Section 1.05(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and ); thereafter at Beneficiary’s option, any remaining Condemnation Proceeds may shall be returned to Mortgagor (i) if in Mortgagee's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(B)(i) are not satisfied, then any remaining Condemnation Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Trustor Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Condemnation Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period. (C) Any Insurance Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Mortgagor to the extent of any funds of Mortgagor's contributed to the restoration pursuant to Section 105)(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default); thereafter any remaining Insurance Proceeds shall be returned to Mortgagor (i) if in Mortgagee's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(C)(i) are not satisfied, then any remaining Insurance Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Insurance Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(C) and 1.4(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be satisfactory to Beneficiary and Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary at Trustor’s expense, subject to revision as restorations are made, Trustor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary and Trustor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor so long as the restoration work is being diligently performed by Trustor and only after: (i) Trustor has delivered to Beneficiary, Beneficiary and Beneficiary has approved, approved the plans and specifications for the restoration of the Property; (ii) Trustor has executed a contract acceptable to Beneficiary with a general contractor reasonably acceptable to Beneficiary for the restoration of the Property; (iii) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv) Trustor has furnished Beneficiary with an endorsement to its title policy the Title Policy showing no additional exceptions; and (v) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Proceeds may be applied to the prepayment of the Note Notes without payment of any Prepayment Premium. Full or partial prepayment of the Note Notes under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor to prepay the portion of the Note Notes remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the NoteNotes, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“"Escrow Fund”"). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary Mortgagee and TrustorMortgagor. The costs and fees of such escrow agent shall be paid by TrustorMortgagor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s 's or engineer’s 's opinion obtained by Beneficiary Mortgagee at Trustor’s Mortgagor's expense, subject to revision as restorations are made, Trustor Mortgagor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s 's or engineer’s 's estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary Mortgagee or other cash equivalent acceptable to BeneficiaryMortgagee. The Trustor’s Mortgagor's funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary Mortgagee and Trustor Mortgagor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Mortgagor so long as the restoration work is being diligently performed by Trustor Mortgagor and only after: after (i1) Trustor Mortgagee has delivered to Beneficiary, and Beneficiary has approved, approved the plans and specifications for the restoration of the Property; (ii) Trustor has executed a contract acceptable to Beneficiary with a general contractor acceptable to Beneficiary for the restoration of the Property; (iii) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv) Trustor has furnished Beneficiary with an endorsement to its title policy showing no additional exceptions; and (v) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Proceeds may be applied to the prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.;

Escrow Fund for Condemnation and Insurance Proceeds. (A) A. In the circumstances indicated above in Subsections subsections 1.3(C) and 1.4(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary and Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary at Trustor’s expense, subject to revision as restorations are made, Trustor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution reasonably acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition immediately prior to the occurrence of such condemnation or damage and unless a disbursement agent satisfactory to Beneficiary and Trustor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor so long as the restoration work is being diligently performed by Trustor and only after: after (i1) Trustor has delivered to Beneficiary, and Beneficiary has approved, approved the plans and specifications for the restoration of the PropertyProperty (which approval shall not be unreasonably withheld, conditioned or delayed); (ii2) Trustor has executed a contract acceptable to Beneficiary with a general contractor reasonably acceptable to Beneficiary for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv4) Trustor has furnished Beneficiary with an endorsement to its title policy showing no additional exceptionsexceptions (other than those approved by Beneficiary) or if such endorsement is not available, a new mortgagee policy of title insurance showing no additional exceptions (other than those approved by Beneficiary); and (v5) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) B. Any Condemnation Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph Section 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Condemnation Proceeds may be applied to the partial payment or prepayment of the Note (without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; however, Premium and notwithstanding any such partial prepayment shall not entitle Trustor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and Period) or may be returned to the Prepayment Premium described thereinTrustor. If an Event of Default exists, the use of the Condemnation Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period. C. Any Insurance Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, shall be paid first, to Trustor to the extent of any funds of Trustor’ s contributed to the restoration pursuant to Section 1.5, and thereafter, any remaining Insurance Proceeds shall be held in the escrow as additional collateral security for the Note, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. The entire amount remaining in such escrow shall be paid to Beneficiary upon maturity of the Note for application to the indebtedness secured by this Deed of Trust and the balance, if any, shall be paid to Trustor. If an Event of Default exists at any time from the time of completion of restoration and the final application of any Insurance Proceeds, the use of the Insurance Proceeds shall be governed by Article III below.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (“"Proceeds”") shall be deposited in an interest bearing escrow fund (“"Escrow Fund”"). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary Mortgagee and TrustorMortgagor. The costs and fees of such escrow agent shall be paid by TrustorMortgagor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s 's or engineer’s 's opinion obtained by Beneficiary Mortgagee at Trustor’s Mortgagor's expense, subject to revision as restorations are made, Trustor Mortgagor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s 's or engineer’s 's estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary Mortgagee or other cash equivalent acceptable to BeneficiaryMortgagee. The Trustor’s Mortgagor's funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary Mortgagee and Trustor Mortgagor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Mortgagor so long as the restoration work is being diligently performed by Trustor Mortgagor and only after: after (i1) Trustor Mortgagor has delivered to Beneficiary, Mortgagee and Beneficiary Mortgagee has approved, approved the plans and specifications for the restoration of the Property; (ii2) Trustor Mortgagor has executed a contract acceptable to Beneficiary Mortgagee with a general contractor acceptable to Beneficiary Mortgagee for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors and suppliers which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor contractor, subcontractor or subcontractorsupplier; (iv4) Trustor Mortgagor has furnished Beneficiary Mortgagee with an endorsement to its title policy showing no additional exceptions; and (v5) Trustor Mortgagor has deposited its funds in the Escrow Fund as provided in this Paragraph Section and has submitted such other documents and information as may be reasonably requested by Beneficiary Mortgagee to determine that the work to be paid for has been performed in accordance with the plans and specifications reasonably approved by BeneficiaryMortgagee. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor Mortgagor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or BeneficiaryMortgagee. Any failure by Trustor Mortgagor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph Section upon demand by Beneficiary Mortgagee shall constitute a Performance Default, as hereinafter defined. (B) Any Condemnation Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Trustor Mortgagor to the extent of any funds of Trustor’s Mortgagor's contributed to the restoration pursuant to Paragraph 1.5, provided Section 1.05(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and ); thereafter at Beneficiary’s option, any remaining Condemnation Proceeds may shall be returned to Mortgagor (i) if in Mortgagee's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(B)(i) are not satisfied, then any remaining Condemnation Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Trustor Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Condemnation Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period. (C) Any Insurance Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Mortgagor to the extent of any funds of Mortgagor's contributed to the restoration pursuant to Section 1.05)(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default); thereafter any remaining Insurance Proceeds shall be returned to Mortgagor (i) if in Mortgagee's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(C)(i) are not satisfied, then any remaining Insurance Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Insurance Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(C) and 1.4(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be satisfactory to Beneficiary and Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary at Trustor’s expense, subject to revision as restorations are made, Trustor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary and Trustor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor so long as the restoration work is being diligently performed by Trustor and only after: (i) Trustor has delivered to Beneficiary, Beneficiary and Beneficiary has approved, approved the plans and specifications for the restoration of the Property; (ii) Trustor has executed a contract acceptable to Beneficiary with a general contractor reasonably acceptable to Beneficiary for the restoration of the Property; (iii) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv) Trustor has furnished Beneficiary with an endorsement to its title policy the Title Policy showing no additional exceptions; and (v) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Proceeds may be applied to the prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary Mortgagee and TrustorMortgagor. The costs and fees of such escrow agent shall be paid by TrustorMortgagor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary Mortgagee at TrustorMortgagor’s expense, subject to revision as restorations are made, Trustor Mortgagor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary Mortgagee or other cash equivalent acceptable to BeneficiaryMortgagee. The TrustorMortgagor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary Mortgagee and Trustor Mortgagor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Mortgagor so long as the restoration work is being diligently performed by Trustor Mortgagor and only after: after (i1) Trustor Mortgagor has delivered to Beneficiary, Mortgagee and Beneficiary Mortgagee has approved, approved the plans and specifications for the restoration of the Property; (ii2) Trustor Mortgagor has executed a contract acceptable to Beneficiary Mortgagee with a general contractor acceptable to Beneficiary Mortgagee for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors and suppliers which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor contractor, subcontractor or subcontractorsupplier; (iv4) Trustor Mortgagor has furnished Beneficiary Mortgagee with an endorsement to its title policy showing no additional exceptions; and (v5) Trustor Mortgagor has deposited its funds in the Escrow Fund as provided in this Paragraph Section and has submitted such other documents and information as may be reasonably requested by Beneficiary Mortgagee to determine that the work to be paid for has been performed in accordance with the plans and specifications specification’s reasonably approved by BeneficiaryMortgagee. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor Mortgagor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or BeneficiaryMortgagee. Any failure by Trustor Mortgagor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph Section upon demand by Beneficiary Mortgagee shall constitute a Performance Default, as hereinafter defined. (B) Any Condemnation Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Trustor Mortgagor to the extent of any funds of TrustorMortgagor’s contributed to the restoration pursuant to Paragraph 1.5, provided Section 1.05(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and ); thereafter at Beneficiary’s option, any remaining Condemnation Proceeds may shall be returned to Mortgagor (i) if in Mortgagee’s sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(B)(i) are not satisfied, then any remaining Condemnation Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Trustor Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Condemnation Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period. (C) Any Insurance Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Mortgagor to the extent of any funds of Mortgagor’s contributed to the restoration pursuant to Section 1.05)(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default); thereafter any remaining Insurance Proceeds shall be returned to Mortgagor (i) if in Mortgagee’s sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(C)(i) are not satisfied, then any remaining Insurance Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Insurance Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) A. In the circumstances indicated above in Subsections subsections 1.3(C) and 1.4(C), all Condemnation Proceeds and Insurance Proceeds (“Proceeds”) shall be deposited in an interest bearing escrow fund (“"Escrow Fund”"). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary and Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s 's or engineer’s 's opinion obtained by Beneficiary at Trustor’s 's expense, subject to revision as restorations are made, Trustor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s 's or engineer’s 's estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution reasonably acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s 's funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition immediately prior to the occurrence of such condemnation or damage and unless a disbursement agent satisfactory to Beneficiary and Trustor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor so long as the restoration work is being diligently performed by Trustor and only after: after (i1) Trustor has delivered to Beneficiary, and Beneficiary has approved, approved the plans and specifications for the restoration of the Property; Property (ii) Trustor has executed a contract acceptable to Beneficiary with a general contractor acceptable to Beneficiary for the restoration of the Property; (iii) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv) Trustor has furnished Beneficiary with an endorsement to its title policy showing no additional exceptions; and (v) Trustor has deposited its funds in the Escrow Fund as provided in this Paragraph and has submitted such other documents and information as may be requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor to the extent of any funds of Trustor’s contributed to the restoration pursuant to Paragraph 1.5, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at Beneficiary’s option, any remaining Proceeds may be applied to the prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B approval shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.unreasonably

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (“"Proceeds”") shall be deposited in an interest bearing escrow fund (“"Escrow Fund”"). The escrow agent and the form of the escrow agreement shall be reasonably satisfactory to Beneficiary and TrustorGrantor. The costs and fees of such escrow agent shall be paid by TrustorGrantor. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s 's or engineer’s 's opinion obtained by Beneficiary at Trustor’s Grantor's expense, subject to revision as restorations are made, Trustor Grantor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s 's or engineer’s 's estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary. The Trustor’s Grantor's funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary and Trustor Grantor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Grantor so long as the restoration work is being diligently performed by Trustor Grantor and only after: after (i1) Trustor Grantor has delivered to Beneficiary, Beneficiary and Beneficiary has approved, approved the plans and specifications for the restoration of the Property; (ii2) Trustor Grantor has executed a contract acceptable to Beneficiary with a general contractor acceptable to Beneficiary for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors and suppliers which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor contractor, subcontractor or subcontractorsupplier; (iv4) Trustor Grantor has furnished Beneficiary with an endorsement to its title policy showing no additional exceptions; and (v5) Trustor Grantor has deposited its funds in the Escrow Fund as provided in this Paragraph Section and has submitted such other documents and information as may be reasonably requested by Beneficiary to determine that the work to be paid for has been performed in accordance with the plans and specifications reasonably approved by Beneficiary. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor Grantor shall advance the requisite amount in cash to the Escrow Fund immediately upon written request from the disbursement agent or Beneficiary. Any failure by Trustor Grantor to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph Section upon demand by Beneficiary shall constitute a Performance Default, as hereinafter defined. (B) Any Condemnation Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Trustor Grantor to the extent of any funds of Trustor’s Grantor's contributed to the restoration pursuant to Paragraph 1.5, provided Section 1.05(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and ); thereafter at Beneficiary’s option, any remaining Condemnation Proceeds may shall be returned to Grantor (i) if in Beneficiary's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(B)(i) are not satisfied, then any remaining Condemnation Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B shall not be subject to the Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Trustor Grantor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Condemnation Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period. (C) Any Insurance Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent and other costs described in Section 1.05(A) shall be paid first, to Grantor to the extent of any funds of Grantor's contributed to the restoration pursuant to Section 1.05)(A) (so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default); thereafter any remaining Insurance Proceeds shall be returned to Grantor (i) if in Beneficiary's sole discretion (reasonably exercised) the restoration of the Property has been completed in a satisfactory manner and with satisfactory results and (ii) so long as there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default. If the conditions of Section 1.05(C)(i) are not satisfied, then any remaining Insurance Proceeds shall be applied to the partial payment or prepayment of the Note without payment of any Prepayment Premium; provided, however, that any such partial prepayment shall not entitle Grantor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Insurance Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.

Escrow Fund for Condemnation and Insurance Proceeds. (A) In the circumstances indicated above in Subsections 1.3(Csubsections 1.03(C) and 1.4(C1.04(C), all Condemnation Proceeds and Insurance Proceeds (collectively, “Proceeds”) shall be deposited in an interest bearing escrow fund (“Escrow Fund”). The escrow agent and the form of the escrow agreement shall be satisfactory to Beneficiary Mortgagee and TrustorMortgagor. The costs and fees of such escrow agent shall be paid by Trustor▇▇▇▇▇▇▇▇▇. If the amount of the Proceeds is not sufficient to restore the Property based on an independent contractor’s or engineer’s opinion obtained by Beneficiary Mortgagee at TrustorMortgagor’s expense, subject to revision as restorations are made, Trustor Mortgagor shall be obligated to deposit in the Escrow Fund the difference between the contractor’s or engineer’s estimate and the amount of the Proceeds or deliver to the escrow agent an irrevocable, unconditional letter of credit issued in the amount of such difference in a form and by a financial institution acceptable to Beneficiary Mortgagee or other cash equivalent reasonably acceptable to BeneficiaryMortgagee. The TrustorMortgagor’s funds, if necessary, and the Proceeds shall be deposited into the Escrow Fund and shall not be released by the escrow agent unless used to restore the Property to its original condition and unless a disbursement agent satisfactory to Beneficiary Mortgagee and Trustor Mortgagor approves such disbursements from time to time. The escrow agreement shall provide that the escrow agent shall only disburse funds to Trustor Mortgagor so long as the restoration work is being diligently performed by Trustor ▇▇▇▇▇▇▇▇▇ and only after: after (i1) Trustor ▇▇▇▇▇▇▇▇▇ has delivered to Beneficiary, Mortgagee and Beneficiary Mortgagee has approved, approved the plans and specifications for the restoration of the Property; (ii2) Trustor ▇▇▇▇▇▇▇▇▇ has executed a contract reasonably acceptable to Beneficiary Mortgagee with a general contractor reasonably acceptable to Beneficiary Mortgagee for the restoration of the Property; (iii3) the general contractor has submitted lien waivers and/or releases, executed by the general contractor and all subcontractors which may be partial to the extent of partial payments and which, in the case of releases, may be contingent upon payment if the escrow agent makes payment directly to such contractor or subcontractor; (iv4) Trustor Mortgagor has furnished Beneficiary Mortgagee with an endorsement to its title policy showing no additional exceptionsexceptions which are not permitted by this Mortgage or the Related Agreements; and (v5) Trustor Mortgagor has deposited its funds in the Escrow Fund as provided in this Paragraph section and has submitted such other documents and information as may be reasonably requested by Beneficiary Mortgagee to determine that the work to be paid for has been performed in accordance with the plans and specifications approved by BeneficiaryMortgagee. If any requisition for payment of work performed is for an amount which would result in the remaining balance of the Escrow Fund to be insufficient to complete the remainder of the restoration, Trustor Mortgagor shall advance the requisite amount in cash to the Escrow Fund immediately promptly upon written request from the disbursement agent or BeneficiaryMortgagee. Any failure by Trustor ▇▇▇▇▇▇▇▇▇ to satisfy any of the conditions to the disbursement of Proceeds set forth in this Paragraph section upon demand by Beneficiary Mortgagee shall constitute a Performance Default, Default (as hereinafter defined). (B) Any Proceeds and any interest thereon remaining in the Escrow Fund after payment of the costs to complete the restoration of the Property pursuant to the approved plans and specifications and the costs of the escrow agent shall be paid first, to Trustor Mortgagor to the extent of any funds of TrustorMortgagor’s contributed to the restoration pursuant to Paragraph 1.5section 1.05, provided there is no Event of Default or an event which with notice, the passage of time, or both, could become an Event of Default, and thereafter at BeneficiaryMortgagee’s option, any remaining Proceeds may be applied to the prepayment of the Note without payment of any Prepayment Premium. Full or partial prepayment of the Note under the preceding sentences of this Section 1.5B section 1.05(B) shall not be subject to the Prepayment Premium; however, any such partial prepayment shall not entitle Trustor Mortgagor to prepay the portion of the Note remaining unpaid after application of the Proceeds. Prepayment of the balance shall continue to be subject to the terms and conditions of the Note, including the No-Prepayment Period and the Prepayment Premium described therein. If an Event of Default exists, the use of the Proceeds shall be governed by Article III below. If, however, an event exists which with notice, the passage of time, or both, could become an Event of Default, the remaining balance in the Escrow Fund shall be held by the escrow agent pending cure of the event prior to the expiration of any applicable cure or grace period.