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part thereof may be released. Neither the application nor
the release of any such amounts shall cure or waive any
default. Provided Mortgagor is not in default hereunder
(or if a default is not cured within the applfcable cure
period) and no event shall have occurred which with the
psssage of time or the giving of notice, or both, would
result in a default, Mortgagee agrees that it will receive
and hold such proceeds in an escrow account and permit the
same to be .applied toward the restoration and
reconstruction of the damaged Mortgaged Premises in
accordance with the final approved plans and
specif ications subject, however, to the following express
conditions precedent:
i. Such sums shall be and remain fully secured hereby;
a nd
ii. Mortgagee shall have approved the full restoration
and reconstruction costs estimates obtained and
supplied by Mortgagor, and Mortgagor shall have
deposited with Mortgagee the difference, if any,
between the insurance proceeds received by Mortgagee,
and the balance of any available but undisbursed
construction loan proceeds remaining and the approved
restoration and reconstruction cost, which deposited
funds shal l be expended f irst; and
iii. All major tenants designated by Mortgagee shall have
agreed in writing and be obligated to re-enter the
same leased spaced under the same lease agreements as
pr ior to the event giving r ise to the rece ipt of
• mortgage proceeds; and
iv. Sufficient time remains to maturity to permit the
restoration, reconstruction and repayment of the loan
' ~ as herein contemplated; and
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f • v. If such damage shall occur prior to the assignment of
~ the Note and this Mortgage to Crown Life Insurance
Company, Mortgagor shall obtain the written consent
~ of Crown Life Insurance Company to extent the time ta
purchase the Note and the Mortgage pursuant to the
~ terms of a certain Buy-Sell Agreement among
Mortgagee, Mortgagor and such insurance company for a
sufficient period to permit the repair and
restoration of the Improvements.
~ Any advances of such insurance proceeds shall be made
in the same manner and on the same conditions as advances under
the Loan (hereinafter defined). Such insurance shall at all
times be subject to Mortgagee's approval as to amount, company,
form and expiration date. Upon exercise of any power of sale
~ given in this Mortgage or foreclosure hereof, or other
acquisition of the premises or any part thereof by Mortgagee,
` such policies shall become the absolute property of Mortgagee.
~ Such policies shall contain an agreement by the insurer to give
~ Mortgagee at least thirty (30) days written notice prior to
~ cancellation thereof or payment of any claim thereunder.
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