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<br />(f) Lender is authorized at any time and from time to time with notice to
<br />Borrower or to any other person, any such notice being hereby expressly waived, to set off
<br />any and all deposits, and any other indebtedness at any time held by, or owing to, Lender,
<br />to or for the credit or the account of Borrower, against the obligations and liabilities of
<br />Borrower to Lender under this Agreement and the Note, as applicable.
<br />Section 6.02 Completion of Project by Lender. Upon and during the continuation of an
<br />Event of Default, caused by, or which results in, Borrower's failure, for any reason, to continue
<br />with construction of the Project as required by this Agreement, then Lender may (but shall not be
<br />obligated to), in addition to, or in concert with, the other remedies referred to in Section 6.01, take
<br />over and complete construction of the Project in accordance with the plans, with such changes
<br />there as Lender may, in its reasonable discretion, deem appropriate, all at the risk, cost and expense
<br />of Borrower. Lender may assume or reject any contracts entered into by Borrower in connection
<br />with the Project, may enter into additional or different contracts for work, services, labor and
<br />materials required, in the reasonable judgment of Lender, to complete the Project, and may pay,
<br />compromise and settle all claims in connection with the Project.
<br />All third party sums, including reasonable attorneys' fees, and charges or fees for
<br />supervision and inspection of the construction and for any other necessary or desirable purpose in
<br />the discretion of Lender expended by Lender in completing or attempting to complete the Project
<br />in accordance with the plans (whether aggregating more, or less, than the face amount of the Note),
<br />shall be deemed Advances made by Lender to Borrower hereunder, and Borrower shall be liable
<br />to Lender, on demand, for the repayment of such sums, together with interest on such sums from
<br />the date of their expenditure at the rates provided in the Note.
<br />Lender may, in its discretion, at any time abandon work on the Project, after having
<br />commenced such work, and may recommence such work at any time, it being understood that
<br />nothing in this Section 6.02 shall impose any obligation on Lender either to complete or not to
<br />complete the Project.
<br />Notwithstanding anything to the contrary herein, Lender agrees that Lender will not
<br />exercise any rights or remedies it may have under the Loan Documents with respect to the
<br />Borrower unless the Department is seeking remedies from Lender or Borrower or enforcing an
<br />event of default against Lender or Borrower; provided, however, that Lender shall not be
<br />prohibited from requiring Borrower to cure any non -monetary default prior to the Department
<br />seeking any remedies from Lender or Borrower or enforcing an event of default against Lender or
<br />Borrower.
<br />ARTICLE 7
<br />DEFINITIONS
<br />Section 7.01 Certain Defined Terms.
<br />As used in this Agreement, the following terms shall have the following meanings (such
<br />meanings to be equally applicable to both the singular and plural forms of the terms defined):
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