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<br />pursuant to the Note shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Provided
<br />there are sufficient amounts in the Escrow Fund and no Event of Default exists, Lender shall be obligated to pay the
<br />Taxes and Insurance Premiums as they become due on their respective due dates on behalf of Borrower by applying the
<br />Escrow Fund to the payments of such Taxes and Insurance Premiums required to be made by Borrower pursuant to
<br />Sections 3.3 and 3.4. If the amount of the Escrow Fund shall exceed the amounts due for Taxes and Insurance Premiums
<br />pursuant to Sections 3.3 and 3.4, Lender shall, in its discretion, return any excess to Borrower in accordance with all
<br />applicable laws or credit such excess against future payments to be made to the Escrow Fund. In allocating such excess,
<br />Lender may deal with the person shown on the records of Lender to be the owner of the Property. If the Escrow Fund is
<br />not sufficient to pay the items set forth in (a) and (b) above, Borrower shall promptly pay to Lender, upon demand, an
<br />amount which Lender shall reasonably estimate as sufficient to make up the deficiency. The Escrow Fund shall not
<br />constitute a trust fund and may be commingled with other monies held by Lender. Unless otherwise required by
<br />applicable state or federal law, no earnings or interest on the Escrow Fund shall be payable to Borrower.
<br />Section 3.6. CONDEMNATION. Borrower shall promptly give Lender notice of the actual or threatened
<br />cornmencenient of any condemnation or eminent domain proceeding and shall deliver to Lender copies of any and all
<br />papers served in connection with such proceedings. Notwithstanding any taking by any public or quasi- public authority
<br />through eminent domain or otherwise (including, but not limited to any transfer made in lieu of or in anticipation of the
<br />exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment
<br />in the Note ,end in this Security Instrument and the Debt shall not be reduced until any award or payment therefor shall
<br />have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or
<br />discharge of the Debt. Lender shall not be limited to the interest paid on the award by the condemning authority but shall
<br />be entitled to receive out of the award interest at the rate or rates provided in the Note. Borrower shall cause the award or
<br />payment madc in any condemnation or eminent domain proceeding, which is payable to Borrower, to be paid directly to
<br />Lender. Lender may apply any award or payment to the reduction or discharge of the Debt whether or not then due and
<br />payable. ]I- the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the award or payment,
<br />Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or
<br />denied, to receive the award or payment, or a portion thereof sufficient to pay the Debt.
<br />Section 3.7. RESTORATION AFTER CASUALTY.
<br />(a) In the event of loss, Borrower shall give immediate written notice to the insurance carrier
<br />and to Lendc>r. Borrower hereby authorizes and appoints Lender as attorney -in -fact for Borrower to make proof of loss, to
<br />adjust and compromise ally claims under policies of property damage insurance, to appear in and prosecute any action
<br />arising front such property damage insurance policies, to collect and receive the proceeds of property damage insurance,
<br />and to deduct from such proceeds Lender's expenses incurred in the collection of such proceeds. This power of attorney
<br />is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 3.7 shall require
<br />Lender to incur any expense or take any action. Lender may, at Lender's option, (1) hold the balance of such proceeds to
<br />be used to reimburse Borrower for the cost of restoring and repairing the Property to the equivalent of its original
<br />condition ur to a condition approved by Lender (the "Restoration "), or (2) apply the balance of such proceeds to the
<br />payment of the Debt, whether or not then due. To the extent Lender determines to apply insurance proceeds to
<br />Restoration. fender shall do so in accordance with Lender's then - current policies relating to the restoration of casualty
<br />damage on similar properties.
<br />(b) Lender shall not exercise its option to apply insurance proceeds to the payment of the Debt if
<br />all of the following conditions are met: (1) no Eventof Default (or any event which, with thegiving of notice or the
<br />passage of time, or both, would constitute an [,vent of Default) has occurred and is continuing; (2) Lender determines, in
<br />its discretion, that there will be sufficient funds to complete the Restoration; (3) Lender determines, in its discretion, that
<br />the net cash Ilow from the Property after completion of the Restoration will be sufficient to meet all operating costs and
<br />other expenses, deposits to the Escrow Fund, deposits to reserves and loan repayment obligations relating to the Property;
<br />(4) Lender determines, in its discretion, that the Restoration will be completed before the earlier of (A) one year before
<br />the maturity (.late of the Note or (I3) one year after the date of the loss or casualty; and (5) upon Lender's request,
<br />Borrower pinvides Lender evidence of the availability during and after the Restoration of the insurance required to be
<br />maintained by Borrower pursuant to Section 33.
<br />Section 3.8. LEASES.. AND RENTS.
<br />Borrower shall maintain, enforce and cause to be performed all of the terms and conditions under any Lease or sublease,
<br />which may constitute a portion of the Property. Borro r shall not, bout the consent of Lender enter into any new
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