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<br />88- 104344 <br /> <br />reduction of the indebtedness hereby secured, without prepayment <br />penalty or charge as hereinafter provided, or, at Mor.tgagee's <br />option to the restoration or repair of the Mortgaged property <br />without affecting the lien of this Mortgage or the obligations <br />hereunder. In event of foreclosure of this Mortgage, all right, <br />title and interest of Mortgagor in and to any insurance policies <br />then in force shall pass to the purchaser at the foreclosure <br />sale. <br /> <br />The proceeds of insurance maintained pursuant to the <br />subsections provided above shall be applied at Mortgagor's option <br />to reduction of the indebtedness hereby secured, or to the <br />restoration and repair of the Mortgaged Property, ,provided <br />however in the case of application of such proceeds to the <br />restoration and repair of the Mortgaged property that Mortgagor <br />shall have first complied with all of the following prerequisites <br />for such application: Mortgagor shall have first demonstrated <br />and established by documentation, plans, specifications, <br />construction documents and feasibility reports satisfactory to <br />Mortgagee that (i) the replacements, repairs and improvements <br />proposed by Mortgagor will be completed within six (6) months of <br />the date upon which a portion of the Mortgaged property was <br />damaged, (ii) that the Mortgaged property as restored and <br />repaired will have substantially the same operating utility, <br />market value, and revenue producing ability as existed <br />immediately prior to the date upon which the portion of the <br />Mortgaged property damaged, (ii) there are sufficient amounts <br />deposited with Mortgagee to assure payment of the costs of such <br />restoration and repair, and (iv) Mortgagor is not in default <br />under the Loan Docum~nts nor has Mortgagor previously been in <br />default under the Loan Documents which default had been <br />outstanding for a period of more than thirty (30) days. All such <br />actions taken by the Mortgagor with respect to such repair or <br />restoration shall be in accordance with plans and specifications, <br />completion schedules, payment and performance bonds, construction <br />contracts, title insurance pOlicies, satisfactory architects <br />reports, project cost statements and equity deposits approved in <br />advance by Mortgagee, and in accordance with any other reasonable <br />construction loan controls required by Mortgagee and normally <br />applied by Mortgagee as construction lending controls. <br /> <br />Nothing contained in this section shall relieve the <br />Mortgagor under any circumstances of Mortgagor's obligation to <br />repair, restore and reconstruct any portion of the Mortgaged <br />property damaged by casualty loss or taken by condemnation <br />proceedings. <br /> <br />All proceeds of business interruption or rent loss insurance <br />maintained pursuant to this Section hereof shall be paid to the <br />Mortgagee and Mortgagor Jointly for the purpose of paying, to the <br />extent available and necessary, in the following order: (1) <br />insurance premiums payable with respect to any insurance required <br />to be carried by the Mortgagor under this Mortgage, (2) taxes, <br /> <br />-5- <br /> <br /> <br />I I <br />