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201906785 (e) If the insurance proceeds are applied to the reduction of the Indebtedness secured by this Instrument, any such application of proceeds shall not extend or postpone the due dates of the installments payable under the Note, or change the amounts of such installments. (f) If the Property is sold pursuant to this Instrument or if Lender acquires title to the Property, Lender shall have all of the right, title, and interest of Grantor in and to any insurance policies and unearned premiums thereon and in and to the proceeds resulting from any damage to the Property prior to such sale or acquisition. (g) If any loss shall occur at any time when an Event of Default exists, Lender shall be entitled to the benefit of all insurance held by or for Grantor, to the same extent as if it had been made payable to Lender, and upon foreclosure under this Instrument, Lender shall become the owner of all insurance policies. 7.3 RESTORATION OF PROPERTY. Provided no Event of Default has occurred, and no event has occurred which, with the passage of time or notice or both, would constitute or cause an Event of Default, Lender will permit Grantor to rebuild and restore the Property to its previous condition following a casualty and to use the insurance proceeds paid as a result of the casualty, subject to Lender's determination, in its sole and absolute discretion, that the Property can be properly restored. Lender will hold the insurance proceeds in a separate account to be applied to the restoration and repair of the Property upon the following terms and provisions: (a) The Property shall be restored to the equivalent of its original condition or such other condition as Lender may approve in writing. (b) Grantor shall cause an architect acceptable to Lender to prepare plans and specifications for the repair and restoration of the damaged property. In addition, Grantor shall have the repair and restoration work bid by a contractor or contractors acceptable to Lender and shall obtain the contractor's cost estimate for such work. Grantor shall promptly submit the plans and specifications and the contractor's cost estimate to Lender for approval. Upon receipt of approval by Lender, Grantor will promptly commence and diligently pursue the work of repair and restoration. (c) If prior to the commencement of the work, or at any time during the restoration and repair of the Property, Lender shall determine in good faith that the total cost of restoration or repair shall exceed the balance of the proceeds held in its possession, Grantor shall immediately pay, in cash, to Lender the amount of such excess costs. Until the amount of such excess costs is paid to Lender, Lender shall not be obligated to disburse any of the proceeds held by Lender. The insurance proceeds, together with the amount of excess costs paid by Grantor, are hereinafter collectively called "Construction Funds'. (d) The Construction Funds will be made available to Grantor as restoration and repair work progresses. As a condition precedent to each advance, Lender may require Grantor to furnish to Lender draw requests executed by Grantor and its contractor, executed lien waivers signed by the contractor and any subcontractors or suppliers, and such other items as Lender shall reasonably require. The final advance shall not be made unless and until Lender has received a certificate and affidavit of Grantor (with supporting evidence, including lien waivers and releases) that the construction work has been fully completed and all bills for labor and materials have been paid in full. Lender shall be entitled to designate, at Grantor's expense, an architect or engineer to make inspections or certifications required by Lender, and Lender shall not be required to make any advance until Lender has received inspections and certifications satisfactory to Lender. (e) In the event Grantor shall fail to promptly and fully perform the conditions and covenants set out herein, or in the event during the restoration and repair any Event of Default shall have occurred hereunder, Lender may, at its option, immediately cease making further payments to Grantor for 2932707_3 18