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200802659 (v) The insurer under such policies of fire or other casualty insurance does not assert any defense to payment under such policies against Secured Party, Borrower or any tenant of the Property; (vi) Secured Party shall have the option, upon the completion of such restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of such restoration, at par, to the reduction of the outstanding principal balance of the Note; notwithstanding the fact that the amount owing thereon may not then be due and payable or that said indebtedness is otherwise adequately secured; (vii) The funds held by Secured Party shall be disbursed no more often than once per month and in amounts of not less than Twenty-Five Thousand and NollOO Dollars ($25,000.00) each except the final disbursement of such funds which may be in an amount less than Twenty-Five Thousand and Noll 00 Dollars ($25,000.00); and (viii) Secured Party's obligation to make any such disbursement shall be conditioned upon Secured Party's receipt of written certification from Secured Party's inspecting architect/engineer (whose fees shall be paid by Borrower) that all construction and work for which such disbursement is requested has been completed in accordance with the approved plans and specifications and in accordance with all applicable building codes, zoning ordinances and all other local or federal governmental regulations, and, further, that Borrower has deposited with Secured Party sufficient funds to complete such restoration in accordance with Subsection 1.4(b)(iii) above. (c) Delivery to Secured Party ofany policy of insurance or certificate required under this Section or any renewal thereof shall constitute an assignment to Secured Party of all unearned premiums thereon as further security for the payment of the Note and all other sums secured hereby. In the event of a foreclosure of this Deed of Trust or any acquisition of the Property by the Secured Party all such policies and any proceeds payable therefrom, whether payable before or after a foreclosure sale, or during the period of redemption, if any, shall become the absolute property of the Secured Party to be utilized at its discretion. In the event of foreclosure or the failure to obtain and keep any required insurance the Borrower empowers the Secured Party to effect the above insurance upon the Property at Borrower's expense and for the benefit of the Secured Party in the amounts and types aforesaid for a period of time covering the time of redemption from foreclosure sale, and if necessary therefore, to cancel any or all existing insurance policies. 1.5 Use and Repairs. Borrower will not commit any waste on the Property reasonable wear and tear excepted, and without Secured Party's prior written consent, will not make any substantial change in the use of the Property and will not make any alterations in same, unless Borrower demonstrates to Secured Party's reasonable satisfaction that the value of the Property has not decreased as a result of such alteration. Borrower will, at all times maintain the Improvements in good operating order and condition and will promptly make, from time to time, 5 AM 157:0AM57:667038:5:LOUISVILLE 3/20/08