Event of Default During Restoration. Notwithstanding anything to the contrary contained in this Security Instrument including, without limitation, the provisions of this Article III, if, at the time of any casualty affecting the Property or any part thereof, or at any time during any Work, or at any time that Lender is holding or is entitled to receive any Insurance Proceeds pursuant to this Security Instrument, a Default exists and is continuing (whether or not it constitutes an Event of Default), Lender shall then have no obligation to make such proceeds available for Work and Lender shall have the right and option, to be exercised in its sole and absolute discretion and election, with respect to the Insurance Proceeds, either to retain and apply such proceeds in reimbursement for the actual costs, fees and expenses incurred by Lender in accordance with the terms hereof in connection with the adjustment of the loss and, after the occurrence of an Event of Default, any balance toward payment of the Debt in such priority and proportions as Lender, in its sole discretion, shall deem proper, or towards the Work, upon such terms and conditions as Lender shall determine, or to cure such Event of Default, or to any one or more of the foregoing as Lender, in its sole and absolute discretion, may determine. If Lender shall receive and retain such Insurance Proceeds, the lien of this Security Instrument shall be reduced only by the amount thereof received, after reimbursement to Lender of expenses of collection, and actually applied by Lender in reduction of the principal sum payable under the Note in accordance with the Note.
Event of Default During Restoration. Notwithstanding anything to the contrary contained in this Mortgage including, without limitation, the provisions of this Article 3, if, at the time of any casualty affecting the Mortgaged Property or any part thereof, or at any time during any Work, or at any time that Mortgagee is holding or is entitled to receive any Insurance Proceeds pursuant to this Mortgage, a Default exists and is continuing (whether or not it constitutes an Event of Default), Mortgagee shall then have no obligation to make such proceeds available for Work and Mortgagee shall have the right and option, to be exercised in its sole and absolute discretion and election, with respect to the Insurance Proceeds, either to retain and apply such proceeds in reimbursement for the actual costs, fees and expenses incurred by Mortgagee in accordance with the terms hereof in connection with the adjustment of the loss and any balance toward payment of the Debt in such priority and proportions as Mortgagee, in its sole discretion, shall deem proper, or towards the Work, upon such terms and conditions as Mortgagee shall determine, or to cure such Event of Default, or to any one or more of the foregoing as Mortgagee, in its sole and absolute discretion, may determine. If Mortgagee shall receive and retain such Insurance Proceeds, the lien of this Mortgage shall be reduced only by the amount thereof received, after reimbursement to Mortgagee of expenses of collection, and actually applied by Mortgagee in reduction of the principal sum payable under the Note in accordance with the Note.
Event of Default During Restoration. Notwithstanding anything to the contrary contained in this Deed of Trust including, without limitation, the provisions of this Article 3, if, at the time of any casualty affecting the Trust Property or any part thereof, or at any time during any Work, or at any time that Beneficiary is holding or is entitled to receive any proceeds of any insurance pursuant to this Deed of Trust, an Event of Default exists and is continuing, Beneficiary shall then have no obligation to make such proceeds available for Work and Beneficiary shall have the right and option, to be exercised in its sole and absolute discretion and election, with respect to the proceeds of any such insurance, either to retain and apply such proceeds in reimbursement for the actual costs, fees and expenses incurred by Beneficiary in accordance with the terms hereof in connection with the adjustment of the loss and any balance toward payment of the Debt in such priority and proportions as Beneficiary in its sole discretion shall deem proper, or towards the Work, upon such terms and conditions as Beneficiary shall determine, or to cure such Event of Default, or to any one or more of the foregoing as Beneficiary, in its sole and absolute discretion, may determine.
