|
200206622
<br />3.03.03 In the event of the foreclosure of this Instrument or any other transfer of
<br />title to the Premises in extinguishment, in whole or in part, of the Obligations, all right, title and
<br />interest of Grantor in and to all insurance policies then in force shall pass to the purchaser or
<br />grantee.
<br />3.04 Condemnation. Subject to the provisions hereinbelow concerning "Non- Material
<br />Condemnations," if all or any portion of the Premises shall be damaged or taken through
<br />condemnation (the term "condemnation" when used in this Instrument shall include any damage
<br />or taking by any governmental or quasi - governmental authority by exercise of power of eminent
<br />domain and any transfer by private sale in lieu thereof), then the entire Obligations shall, at the
<br />option of the Beneficiary, immediately become due and payable. Grantor, immediately upon
<br />obtaining knowledge of the institution of any action or proceeding for the taking through
<br />condemnation of the Premises or any part thereof, will notify Beneficiary, and Beneficiary is
<br />hereby authorized, at its option, to commence, appear in and prosecute, through counsel selected
<br />by Beneficiary, in its own name, any action or proceeding relating to any condemnation, and to
<br />settle or compromise any claim of Beneficiary in connection therewith. In addition, Beneficiary
<br />is hereby authorized, at its option, if and to the fullest extent then permissible under applicable
<br />law, (i) to commence, appear in and prosecute, through counsel selected by Beneficiary, in
<br />Grantor's name, any such action or proceedings, and (ii) to settle or compromise any claim of
<br />Grantor in connection therewith. With respect to any condemnation, all such compensation,
<br />awards, damages, claims, rights of action and proceeds and the right thereto are hereby assigned
<br />by Grantor to Beneficiary, and Beneficiary is authorized, at its option, to collect and receive all
<br />such compensation, awards or damages and to give proper receipts and acquittances therefor
<br />without any obligation to question the amount of any such compensation, awards or damages.
<br />After deducting from said condemnation proceeds all of its expenses incurred in the collection
<br />and administration of such sums, including reasonable attorney's fees, Beneficiary shall apply
<br />the net proceeds or any part thereof, to the payment of the Obligations, all without affecting the
<br />lien or security interest created by this Instrument, and any balance of such moneys then
<br />remaining shall be paid to Grantor or any other person or entity lawfully entitled thereto.
<br />Grantor agrees to execute such further assignments of any compensation, awards, damages,
<br />claims, rights of action and proceeds as Beneficiary may require. If, prior to the receipt by
<br />Beneficiary of such award or proceeds, the Premises, or any part thereof, shall have been sold on
<br />foreclosure of this Instrument, or under the power of sale herein granted, Beneficiary shall have
<br />the right to receive such award or proceeds to the extent of any unpaid Obligations following
<br />such sale, with legal interest thereon, whether or not a deficiency judgment on this Instrument or
<br />the Credit Agreement shall have been sought or recovered, and to the extent of counsel fees,
<br />costs and disbursements incurred by Beneficiary in connection with the collection of such award
<br />or proceeds. In the event of a "Non- Material Condemnation" (as hereinafter defined) and
<br />provided no Event of Default shall have occurred and is continuing, Beneficiary shall not have
<br />an option to declare the Obligations due and payable, as granted in the first sentence of this
<br />Section 3.04. A "Non- Material Condemnation" shall mean a condemnation which does not
<br />result in the taking or damage, either temporarily or permanently, of (i) all of the Land, (ii) any
<br />material portion of any buildings or structures now or hereafter erected on the Land, (iii) so
<br />much of the Land as causes the remainder of the Land to be in violation of any zoning laws,
<br />restrictive covenants or similar laws, regulations or restrictions affecting the Land (provided,
<br />however, that Grantor shall have thirty (30) days after the date upon which the Land first
<br />becomes in violation of such matter(s) in which to attempt to cure any such violation which is
<br />Ell
<br />
|