Lender’s Ongoing Insurance Requirements. Each Obligor acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj) OR SECTION 9.2(kkkk)(3) above shall permit lender to purchase the applicable INSURANCE AT SUCH OBLIGOR’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT SUCH OBLIGOR’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, OBLIGORS WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGOR’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR MAY BE ABLE TO OBTAIN ON ITS OWN. EACH OBLIGOR MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds to be applied to reimburse IDOT Guarantor for the cost of Restoration (in accordance with Lender’s then-current policies relating to the restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; and IDOT Guarantor provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm) shall affect any of Lender’s remedial rights against any Obligor in connection with a breach by such Obligor of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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Lender’s Ongoing Insurance Requirements. Each Obligor Borrower acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR BORROWER ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj9.02(a) OR SECTION 9.2(kkkk)(39.02(b)(3) above shall permit lender Lender to purchase the applicable INSURANCE AT SUCH OBLIGOR’S COSTinsurance at Borrower’s cost. SUCH INSURANCE MAYSuch insurance may, BUT NEED NOTbut need not, PROTECT SUCH OBLIGOR’S INTERESTSprotect Borrower’s interests. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR IN CONNECTION WITH THE MORTGAGED PROPERTYThe coverage that Lender purchases may not pay any claim that Borrower makes or any claim that is made against Borrower in connection with the Mortgaged Property. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDERIf Lender purchases insurance for the Mortgaged Property as permitted hereunder, OBLIGORS WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCEBorrower will be responsible for the costs of that insurance, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCEincluding interest at the Default Rate and any other charges Lender may impose in connection with the placement of the insurance until the effective date of the cancellation or the expiration of the insurance. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGOR’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESSThe costs of the insurance shall be added to Borrower’s total outstanding balance or obligation and shall constitute additional Indebtedness. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR MAY BE ABLE TO OBTAIN ON ITS OWNThe costs of the insurance may be more than the cost of insurance Borrower may be able to obtain on its own. EACH OBLIGOR MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDERBorrower may later cancel any insurance purchased by Lender, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTSbut only after providing evidence that Borrower has obtained insurance as required by this Loan Agreement and the other Loan Documents. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds in the Restoration Reserve Account to be applied to reimburse IDOT Guarantor Borrower (or Master Lessee as directed by Borrower) for the cost of Restoration (in accordance with Article 13 and Lender’s then-current policies relating to the restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A9.03(b)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support Master Lessee’s Basic Rent and other financial obligations under the Master Lease, and a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one (1) year before the stated Maturity Date, or one (1) year after the date of the loss or casualty; and IDOT Guarantor Borrower provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,00075,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor Borrower to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor Borrower shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one (1) year before the stated Maturity Date, or one (1) year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor Borrower (or Master Lessee, as directed by Borrower) and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor Borrower shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases, other than the Master Lease). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor Borrower shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm9.03(b) shall affect any of Lender’s remedial rights against any Obligor Borrower in connection with a breach by such Obligor Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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Lender’s Ongoing Insurance Requirements. Each Obligor Borrower acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR BORROWER ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj9.02(a) OR SECTION 9.2(kkkk)(3or Section 9.02(b)(3) above shall permit lender to purchase the applicable INSURANCE AT SUCH OBLIGORBORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT SUCH OBLIGORBORROWER’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR BORROWER IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, OBLIGORS BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGORBORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. EACH OBLIGOR BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds in the Restoration Reserve Account to be applied to reimburse IDOT Guarantor Borrower for the cost of Restoration (in accordance with Article 13 and Lender’s then-current policies relating to the restoration Restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A9.03(b)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; and IDOT Guarantor Borrower provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor Borrower pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,00075,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor Borrower to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor Borrower shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor Borrower and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor Borrower shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor Borrower shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm9.03(b) shall affect any of Lender’s remedial rights against any Obligor Borrower in connection with a breach by such Obligor Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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Lender’s Ongoing Insurance Requirements. Each Obligor Borrower acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR BORROWER ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj9.2(hhhh) OR SECTION 9.2(kkkk)(3or Section 9.2(iiii)(3) above shall permit lender to purchase the applicable INSURANCE AT SUCH OBLIGORBORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT SUCH OBLIGORBORROWER’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR BORROWER IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, OBLIGORS BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGORBORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. EACH OBLIGOR BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds in the Restoration Reserve Account to be applied to reimburse IDOT Guarantor Borrower for the cost of Restoration (in accordance with Article 13 and Lender’s then-current policies relating to the restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A9.3(kkkk)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one (1) year before the stated Maturity Date, or one (1) year after the date of the loss or casualty; and IDOT Guarantor Borrower provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,00075,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor Borrower to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor Borrower shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one (1) year before the stated Maturity Date, or one (1) year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor Borrower and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor Borrower shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor Borrower shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm9.3(kkkk) shall affect any of Lender’s remedial rights against any Obligor Borrower in connection with a breach by such Obligor Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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Lender’s Ongoing Insurance Requirements. Each Obligor Borrower acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR BORROWER ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj9.2(hhhh) OR SECTION 9.2(kkkk)(3or Section 9.2(iiii)(3) above shall permit lender to purchase the applicable INSURANCE AT SUCH OBLIGORBORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT SUCH OBLIGORBORROWER’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR BORROWER IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, OBLIGORS BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGORBORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. EACH OBLIGOR BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds in the Restoration Reserve Account to be applied to reimburse IDOT Guarantor Borrower for the cost of Restoration (in accordance with Article 13 and Lender’s then-current policies relating to the restoration Restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A9.3(kkkk)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; and IDOT Guarantor Borrower provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor Borrower pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,00075,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor Borrower to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor Borrower shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor Borrower and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor Borrower shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor Borrower shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm9.3(kkkk) shall affect any of Lender’s remedial rights against any Obligor Borrower in connection with a breach by such Obligor Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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Lender’s Ongoing Insurance Requirements. Each Obligor Borrower acknowledges that Lender’s insurance requirements may change from time to time. All insurance policies and renewals of insurance policies required by this Loan Agreement shall be: in the form and with the terms required by Lender; in such amounts, with such maximum deductibles and for such periods required by Lender; and issued by insurance companies satisfactory to Lender. EACH OBLIGOR BORROWER ACKNOWLEDGES THAT ANY FAILURE OF BORROWER TO COMPLY WITH THE REQUIREMENTS SET FORTH IN SECTION 9.2(jjjj9.2(wwww) OR SECTION 9.2(kkkk)(3or Section 9.2(xxxx)(3) above shall permit lender to purchase the applicable INSURANCE AT SUCH OBLIGORBORROWER’S COST. SUCH INSURANCE MAY, BUT NEED NOT, PROTECT SUCH OBLIGORBORROWER’S INTERESTS. THE COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH OBLIGOR BORROWER MAKES OR ANY CLAIM THAT IS MADE AGAINST SUCH OBLIGOR BORROWER IN CONNECTION WITH THE MORTGAGED PROPERTY. IF LENDER PURCHASES INSURANCE FOR THE MORTGAGED PROPERTY AS PERMITTED HEREUNDER, OBLIGORS BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER CHARGES LENDER MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR THE EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE SHALL BE ADDED TO SUCH OBLIGORBORROWER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION AND SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE EACH OBLIGOR BORROWER MAY BE ABLE TO OBTAIN ON ITS OWN. EACH OBLIGOR BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER PROVIDING EVIDENCE THAT SUCH OBLIGOR BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS. Application of Proceeds on Event of Loss. Upon an event of loss, Lender may, at Lender’s option: hold such proceeds in the Restoration Reserve Account to be applied to reimburse IDOT Guarantor Borrower for the cost of Restoration (in accordance with Article 13 and Lender’s then-current policies relating to the restoration Restoration of casualty damage on similar multifamily residential properties); or apply such proceeds to the payment of the Indebtedness, whether or not then due; provided, however, Lender shall not apply insurance proceeds to the payment of the Indebtedness and shall permit Restoration pursuant to Section 9.3(mmmm)(1)(A9.3(zzzz)(1)(A) if all of the following conditions are met: no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; Lender determines that the Net Cash Flow generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a debt service coverage ratio not less than the debt service coverage ratio immediately prior to the event of loss, but in no event less than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30) year amortizing basis (if applicable, on a proforma basis approved by Lender) in all events and shall include payments due from any Master Lessee under a Seniors Housing Facility Lease and all operating costs and other expenses, Imposition Deposits, deposits to Collateral Accounts, and Mortgage Loan repayment obligations); Lender determines that the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; and IDOT Guarantor Borrower provides Lender, upon written request, evidence of the availability during and after the Restoration of the insurance required to be maintained by IDOT Guarantor pursuant to this Loan Agreement. After the completion of Restoration in accordance with the above requirements, as determined by Lender, the balance, if any, of such proceeds shall be returned to IDOT Guarantor. Notwithstanding the foregoing, if any loss is estimated to be in an amount equal to or less than $50,00075,000, Lender shall not exercise its rights and remedies as power-of-attorney herein and shall allow IDOT Guarantor Borrower to make proof of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such policies of property damage insurance, and to collect and receive the proceeds of property damage insurance; provided that each of the following conditions shall be satisfied: IDOT Guarantor Borrower shall immediately notify Lender of the casualty giving rise to the claim; no Event of Default has occurred and is continuing (or any event which, with the giving of written notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing); the Restoration will be completed before the earlier of one year before the stated Maturity Date, or one year after the date of the loss or casualty; Lender determines that the combination of insurance proceeds and amounts provided by IDOT Guarantor Borrower will be sufficient funds to complete the Restoration; all proceeds of property damage insurance shall be issued in the form of joint checks to IDOT Guarantor Borrower and Lender; all proceeds of property damage insurance shall be applied to the Restoration; IDOT Guarantor Borrower shall deliver to Lender evidence satisfactory to Lender of completion of the Restoration and obtainment of all lien releases; IDOT Guarantor Borrower shall have complied to Lender’s satisfaction with the foregoing requirements on any prior claims subject to this provision, if any; and Lender shall have the right to inspect the Mortgaged Property (subject to the rights of tenants under the Leases, other than the Seniors Housing Facility Lease). If Lender elects to apply insurance proceeds to the Indebtedness in accordance with the terms of this Loan Agreement, IDOT Guarantor Borrower shall not be obligated to restore or repair the Mortgaged Property. Rather, IDOT Guarantor Borrower shall restrict access to the damaged portion of the Mortgaged Property and, at its expense and regardless of whether such costs are covered by insurance, clean up any debris resulting from the casualty event, and, if required or otherwise permitted by Lender, demolish or raze any remaining part of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section 9.3(mmmm9.3(zzzz) shall affect any of Lender’s remedial rights against any Obligor Borrower in connection with a breach by such Obligor Borrower of any of its obligations under this Loan Agreement or under any Loan Document, including any failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s) required by this Loan Agreement.
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