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900003557 through eminent domain or otherwise (including, but not limited to any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Security Instrument, and the Debt shall not be reduced until any award or payment therefor shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the award by the condemning authority but shall be entitled to receive out of the award interest at the rate or rates provided herein or in the Note. Section 3.8 Restoration after Casualty /Condemnation. In the event of a casualty or a taking by eminent domain, the following provisions shall apply in connection with the Restoration (as defined below) of the Property and availability to Borrower of the Net Proceeds (defined below) received with respect thereto: (a) If the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty, or if the Property or any portion thereof is taken by the power of eminent domain, Borrower promptly shall give notice thereof to Lender and to Trustee and promptly shall commence and diligently prosecute the completion of the repair and restoration of the Property as nearly as possible to the condition the Property was in immediately prior to such fire or other casualty or taking, with such alterations as may be approved by Lender ( "Restoration "). All plans and specifications forthe Restoration and all contractors, subcontractors and materialmen to be engaged in the Restoration, as well as the contracts under which they have been engaged, shall be subject to prior review and acceptance by Lender and, at Lender's option, an independent consulting engineer selected by Lender ( "Casualty Consultant"), such acceptance not to be unreasonably withheld or delayed. All costs and expenses of the Casualty Consultant shall be paid by Borrower. Lender shall have access to the plans and specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. (b) If the estimated cost to complete Restoration does not exceed $250,000 ( "Restoration Threshold "), and no Event of Default has occurred and is then continuing, Borrower shall settle any insurance claims or condemnation action in its commercially reasonable judgment. If the estimated cost to complete Restoration exceeds the Restoration Threshold or if an Event of Default has occurred and is then continuing, Lender shall have the right to participate in and approve any settlement for insurance claims or condemnation awards, and Borrower hereby irrevocably empowers Lender, in the name of Borrower as its true and lawful attorney -in -fact, to file and prosecute such claim and to collect and to make receipt for any such payment. Borrower hereby directs for all proceeds recovered on account of a casualty or condemnation to be paid directly to Lender and hereby grants to Lender and Trustee an irrevocable power of attorney coupled with an interest for the purpose of endorsing any draft received on account of a casualty or condemnation. Net Proceeds may be retained by Lender and applied toward payment of the Debt whether or not then due and payable in such order, priority and proportions as Lender in its discretion shall deem proper or, at Lender's option, paid either in whole or in part to Borrower for Restoration, subject to such reasonable conditions to the release and disbursement thereof as Lender deems proper, including without limitation restricting release to periodic disbursements as Restoration progresses and requiring Borrower to deposit with Lender any deficiency ( "Net Proceeds Deficiency ") between the Net Proceeds made available to Borrower and the estimated cost of completion of the Restoration. All Net Proceeds and any Net Proceeds Deficiency shall, until applied or disbursed in accordance with this Section 3.8, constitute additional security for the Obligations. If Net Proceeds are paid directly to Borrower, such Net Proceeds shall, until the completion of Restoration, be held in trust for Lender and Trustee and shall be segregated from other funds of Borrower and used exclusively to pay for the cost of Restoration in accordance with the terms hereof. If Lender shall receive and retain Net Proceeds, the lien of this Security Instrument shall be reduced only by the amount received and retained by Lender and actually applied by Lender in reduction of the Debt. If the Property is sold through foreclosure or otherwise prior to receipt of the Net Proceeds, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Net Proceeds, or so much thereof as is sufficient to pay the Debt in full. "Net Proceeds" shall mean: (i) the net amount of all insurance proceeds received by Lender under the GMACCM (SLP) — DOT (8/98) 10 ATLd Isle, s Grand Isle, Nebraska