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85-- 004553 ies, and the Borrower may provide on behalf of all the insured parties, appropriate releases to the insurer in connection with any such adjustment. The Borrower shall furnish the Issuer and the Trustee copies of each such policy or appropriate certifications as to the insurance policies in force prior to the commencement of work on this Project. Section 6. Application of Proceeds of Insurance. All insurance carried or maintained with respect to the Project under clause (a) of Section 5 above shall be made payable to the Trustee (except for losses of not more than $10,000 per occurrence as to which settlement shall be made directly with the Borrower unless the Trustee has given notice to the insurer that the Borrower is in default under this Mortgage) and shall be applied as follows: (a) except as provided in clause (b) of this section any insurance proceeds received by the Trustee pursuant to this section, or, if the insurance required by Section 5 was not carried, such sums as would have been recovered if the Borrower had carried the required insurance (which sums shall in such event be promptly deposited by the Borrower with the Trustee on behalf of the Issup;r) shall be deposited to the credit of the Bond Fundf or (b) at the election of the Borrower exercised within ninety (90) days of the casualty giving rise to such insurance proceeds, or, if the Borrower shall then be in default under this Mortgage, at the election exercised within such time by the Trustee, such insur- ance proceeds and such sums deposited by the Borrower, or any part thereof, may be used to make repairs, replacements or improvements to the Project; provided, however, that prior to such application by the Borrower or the Trustee, as the case may be, of such insurance proceeds and such sums, written notice shall be given to the Issuer and the Trustee if the Borrower is using the money therefor, and to the Issuer if the Trustee is so using it, describing such repairs, replacements or improvements, accompanied by such other pertinent information as may be required by the Issuer or the Trustee. The Net Proceeds of all insurance carried or maintained pursuant to Section 5 shall be applied toward extinguishment or satisfaction of the liability with respect to which such insurance proceeds may be paid, except as otherwise provided herein. Section 7. Damage or Destruction. In the event the Project, or any part thereof, shall be damaged, lost or -7- 0