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241100260 option, (1) hold the balance of such proceeds to be used to reimburse Borrow�r for the cost of restoring arid repairing the Mortgaged Property to the equivalent of its original condition or to a condition approved by Lender (the "Restoration"), or (2) apply the balance of such proceeds to the payment of the Indebtedness, wh�ther ar not then due. To the extent Lender determines to apply insurance proceeds to Restoration, Lender shall do sa in accardance with Lender's then-current policies relating to the restaration of casualty damage on similar rnultifamily properties, (g) Lender shall nat exercise its option to apply insurance proc�eds to the payment of the Indebtedness if all of the followin� conditions are met: (1) no Event of Defau(t (or any event which, with the giving of notice or the passage oF time, or both, wauld constitute an Event of Default) has occurred and is continuing; (2) Lender determines, in its discretion, that there will be sufficient funds to complete the Restoration; (3) Lend�r determines, in its discretian, that the net operating income generated by the Mortgaged Praperty after completion of the Restoration will be sufficient to support a debt service cov�rage ratio not less than the greater of (A) the debt service coverage ratia as of the date nf this lnstrument (based on the final underwriting of the Mortga�ed �'roperiy) or (B) the debt service coverage ratio immediately priar to the loss (in each case, Lender's determination shall include all nperating costs and other expenses, Imposition Deposits, deposits to reserves and loan repayment obligations rel�ting to the Martgaged Property); (4) Lender determines, in its discretion, that the Restoratian will be completed before the earlier of (A) ane year before the maturity date of the Note or (B) one year after the date of thc loss or casualty; and (5) upon L�nder's request, Barrawer provides Lender evidence of the availability during and after the Restoration of th� insurance reqrxired to be maintained by Borrower pursuant to this Section 19. (h) If the Mortgaged Property is sald at a foreclosure sale or Lender acquires title to the Mortgaged Property, Lender shall automatically succeed to all rights of Borrower in and to any insurance policies and uraearned insurance prsmiwns and in and to the proceeds resultin� from any damagc to thc Mortgaged Property priar to such sale or acquisitian. 20. CONAEMNATION. (a) Barrower shall promptly notify Lender of any action or proceeding relating ta any condemnation ar other taking, or canveyance in lieu thereof, of all or any part of the Mortgaged Praperty, whether direct or indirect (a "Condemnation"). Borrawer shall appear in and prosecute ar defend any action ar proceeding relating to any Condemnatian unless vtherwise directed by Lender in writing. Borrower authorizes and appoints Lender a� attamey-in-fact far �orrowcr to commence, appear in and prosecute, in Lender's or Borrower's name, any action ar praceeding r�lating to any Condemnation and to settle or compromise any claim in cannectian with any Condemnation. This power of attorney is coupled with an interest and iherefore is irrevocable. However, nothing contained in this Section 20 shall require Lender to incur any expense ar take any action. Barrnw�r hereby transfcrs and assigns to Lender all right, title and interest of Sanrower in and to any avvard ar payment with respect to (i) any Candemnation, or any conveyance in lieu oE Condemnatian, and (ii) any daznage to the Mortgaged Property caused by govemmental actian that daes not result in a Condemnation. �'ANNI� MAE MULTIFAMILY SECURITY INSTRUMENT - Form 4028 06/09 Aage 2.5 NEBRASKA � 1997-2009 T'annic Mac