Common use of Application to Debt Clause in Contracts

Application to Debt. (a) Except as provided in Section 7.4.1 above, any Proceeds and/or Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers for the cost of any Restoration, in the manner set forth in Section 7.4.3 below. Any such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything to the contrary contained herein and provided that an Event of Default shall not then be continuing, if any Proceeds or Award are not required to be made available for a Restoration and are retained and applied by Lender toward the payment of the Debt, Borrowers shall have the right, within 120 days after Lender applies such Proceeds or Award to the Debt, to obtain the release of the affected Property from the Lien of the Mortgage encumbering such Property by paying to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards the Debt) and such prepayment of the Loan shall be without any Yield Maintenance Premium.

Application to Debt. All Net Proceeds not required (ai) Except to be made available for the Restoration or (ii) to be returned to Borrower as provided excess Net Proceeds pursuant to Subparagraph 12.C(3)(f) may be retained and applied by Lender toward the payment of the Debt whether or not then due and payable in Section 7.4.1 abovethat order, any Proceeds and/or Award maypriority and proportions as Lender in its discretion shall deem proper or, at the option discretion of Lender, the same may be paid, either in whole or in part, to Borrower for those purposes as Lender shall designate, in its discretion. Provided no Event of Default, be applied or an event with notice and/or the passage of time would constitute an Event of Default, exists, in the event of any prepayment of the Debt pursuant to the payment terms of (i) accrued Paragraph 2.E hereof, no Yield Maintenance Premium shall be due in connection therewith, but unpaid interest on Borrower shall be responsible for all other amounts due under the Note, (ii) the unpaid Principal Mortgage applicable to the affected Individual Property and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers for the cost of any Restoration, in the manner set forth in Section 7.4.3 below. Any If such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers then Borrower shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may would be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything to the contrary contained herein and provided that an Event of Default shall not then be continuing, under Paragraph 2.F hereof if any Proceeds or Award are not required a Defeasance Deposit was to be made available for a Restoration by Borrower. If Lender shall receive and are retain Net Proceeds, the Release Amount applicable to the lien of the Mortgage applicable to that Individual Property shall be reduced only by the amount thereof received and retained by Lender and actually applied by Lender toward the payment in reduction of the Debt, Borrowers shall have the right, within 120 days after Lender applies . Any such Proceeds or Award application to the Debt, to obtain the release of the affected Property from the Lien of the Mortgage encumbering such Property by paying to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards the Debt) and such prepayment of the Loan Debt shall be without applied to those payments of principal and interest last due under the Note but shall not postpone or reduce any Yield Maintenance Premiumpayments otherwise required pursuant to the Note other than those last due payments.

Application to Debt. (a) Except as provided in Section 7.4.1 above7.4.1, any Proceeds and/or Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan DocumentsDebt, or applied to reimburse Borrowers Borrower for the cost of any Restoration, in the manner set forth in Section 7.4.3 below7.4.3. Any such prepayment of the Loan made pursuant shall be subject to this Section 7.4.2 the Exit Fee, but shall otherwise be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers Borrower shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything to the contrary contained herein and provided that an Event foregoing provisions of Default shall not then be continuingthis Section 7.4, if any Proceeds or Award are not required to be made available for the Loan is included in a Restoration and are retained and applied by Lender toward the payment of the DebtREMIC Trust and, Borrowers shall have the right, within 120 days after Lender applies such Proceeds or Award to the Debt, to obtain the immediately following a release of the affected Property from any portion of the Lien of the Mortgage encumbering Security Instrument following a Casualty or Condemnation (but taking into account any proposed Restoration of the remaining Property), the ratio of the unpaid principal balance of the Loan to the value of the remaining Property is greater than one hundred twenty-five percent (125%) (such Property value to be determined, in Lender’s sole discretion, by paying any commercially reasonable method permitted to a REMIC Trust; and which shall exclude the value of personal property or going concern value, if any), the principal balance of the Loan must be paid down by an amount equal to the least of the following amounts: (i) the net Award (after payment of Lender’s costs and expenses and any other fees and expenses that have been approved by Lender); (ii) the fair market value of the released property at the time of the release; or (iii) an amount such that the loan-to-value ratio of the Loan (as so determined by Lender) does not increase after the release, unless Lender receives an opinion of counsel that if such amount is not paid, the Release Amount for applicable Securitization will not fail to maintain its status as a REMIC Trust as a result of the related release of such Property (minus portion of the Lien of the Security Instrument. If and to the extent the preceding sentence applies, only such amount of the Proceeds or Award applied by Lender towards net Award, if any, in excess of the Debt) and such prepayment amount required to pay down the principal balance of the Loan shall may be without any Yield Maintenance Premium.released for purposes of Restoration or released to Borrower as otherwise expressly provided in this Section 7.4. 68 71215191

Application to Debt. (a) Except as provided in Section 7.4.1 above7.4.1, any Proceeds and/or Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers for the cost of any Restoration, in the manner set forth in Section 7.4.3 below7.4.3. Any such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. After any such application to the Debt, the unpaid Principal shall be reamortized over the remaining Amortization Schedule. Notwithstanding anything to the contrary contained herein and provided that an Event of Default shall not then be continuingherein, if any Proceeds or Award are not required to be made available for a Restoration and are retained and applied by Lender toward the payment of the Debt, Borrowers shall have may prepay the right, entire outstanding Principal without payment of any Yield Maintenance Premium provided that (x) such prepayment is made within 120 90 days after Lender applies such Proceeds or Award to the DebtDebt and (y) together with such prepayment, to obtain the release of the affected Property from the Lien of the Mortgage encumbering such Property by paying Borrowers pay to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards the Debt) all accrued and such prepayment of unpaid interest and all other sums payable under the Loan shall be without any Yield Maintenance PremiumDocuments.

Application to Debt. (a) Except as provided in Section 7.4.1 above7.4.1, the Proceeds and any Proceeds and/or Award may, at the option of Lender in its sole discretion, be applied to the payment of the Debt (iand at Borrower's option, shall be applied towards the Release Amount for the applicable Property) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers Borrower for the cost of any Restoration, in the manner set forth in Section 7.4.3 below7.4.3. Any such prepayment application to the Debt shall be in an amount up to the Release Amount for the affected Property together with an additional amount equal to the Yield Maintenance Premium, if any, that would be required under Section 2.3.3 if a Defeasance Deposit were to be made by Borrower with respect to a Defeased Note in the amount of the Loan made pursuant Proceeds or Award applied to this the Debt. Notwithstanding the foregoing, if the Proceeds or the Award are not in excess of the Release Amount for the affected Property, then such application of the Proceeds or the Award to the Debt shall be subject to Section 7.4.2 2.7, but shall otherwise be without any Yield Maintenance Premiumprepayment consideration, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers Borrower shall be required to pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid PrincipalPremium applicable thereto. Notwithstanding anything to the contrary contained herein and provided that an Event of Default shall not then be continuing, if After any Proceeds or Award are not required to be made available for a Restoration and are retained and applied by Lender toward the payment of the Debt, Borrowers shall have the right, within 120 days after Lender applies such Proceeds or Award application to the Debt, to obtain the release of unpaid Principal shall be reamortized over the remaining term thereof and the Allocated Loan Amount for the affected Property from the Lien of the Mortgage encumbering such Property by paying to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards the Debt) and such prepayment of the Loan shall be without any Yield Maintenance Premiumreduced by the Principal reduction resulting from such application.

Application to Debt. (a) Except as provided in Section 7.4.1 above7.4.1, any Proceeds and/or or Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or or any of the other Loan Documents, or applied to reimburse Borrowers Borrower for the cost of any Restoration, in the manner set forth in Section 7.4.3 below7.4.3. Any such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers Borrower shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything After any such application to the contrary contained herein and provided unpaid Principal, the remaining unpaid Principal shall be reamortized over the remaining Term hereof. In the event that an Event of Default shall (1) Lender does not then be continuing, if any make the Proceeds or Award are not required available to be made available for a the cost of Restoration and are retained and applied by Lender toward exercises its rights under this Section 7.4.2 to apply the payment of the Debt, Borrowers shall have the right, within 120 days after Lender applies such Proceeds or Award to the Debt, to obtain the release payment of the affected Property from Debt and (2) such application does not repay the Lien Debt in full, Borrower shall have the right to prepay in full (but not in part) the remaining balance of the Mortgage encumbering Debt within one hundred twenty (120) days after written notice of such Property by paying to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied application by Lender towards (provided that Borrower must in all events continue to pay all amounts due under the Debt) Loan Documents, including without limitation Debt Service, through the date of such prepayment), and any such prepayment of the Loan by Borrower shall be without any payment of the Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time of such prepayment by Borrower, in which event Borrower shall pay to Lender the Yield Maintenance Premium with respect to the amount of such prepayment by Borrower. In the event Borrower makes a prepayment pursuant to the immediately preceding sentence, (i) such prepayment must be made on a Business Day and (ii) if the date of such prepayment is not a Payment Date, then Borrower shall pay to Lender, in addition to all other sums payable to Lender in connection with such prepayment, a payment of interest, calculated at the Interest Rate, on the amount prepaid, through and including the next succeeding Payment Date.

Application to Debt. (a) Except as provided in Section 7.4.1 abovehereof, any Proceeds and/or Award may, at the option of Lender in its discretionLender, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers Borrower for the cost of any Restoration, in the manner set forth in Section 7.4.3 belowhereof. Any such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers Borrower shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything to the contrary contained herein and provided Provided that an no Event of Default shall not then be is continuing, if any Lender elects to make a prepayment from the Proceeds or Award are not required Award, Borrower may, within one hundred twenty (120) days of Lender’s election to be made available for a Restoration and are retained and applied by Lender toward so make such Casualty/Condemnation Prepayment, upon prior written notice to Lender, prepay the entire remaining principal balance of the Loan without payment of the DebtYield Maintenance Premium or any other fee, Borrowers payment or penalty and without being required to defease the Loan; provided, however, that together with such prepayment, Borrower shall have the right, within 120 days after Lender applies such Proceeds or Award to the Debt, to obtain the release of the affected Property from the Lien of the Mortgage encumbering such Property by paying also pay to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards the Debt) all accrued and such prepayment of unpaid interest and all other sums due and payable under the Loan shall be without any Yield Maintenance PremiumDocuments.

Application to Debt. (a) Except as provided in Section 7.4.1 above, any Proceeds and/or Award may, at the option of Lender in its discretion, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrowers for the cost of any Restoration, in the manner set forth in Section 7.4.3 below. Any such prepayment of the Loan made pursuant to this Section 7.4.2 shall be without any Yield Maintenance Premium, unless an Event of Default has occurred and is continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrowers shall pay to Lender an additional amount equal to the Yield Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. Notwithstanding anything the foregoing provisions of this Section 7.4, if the Loan is included in a REMIC Trust and, immediately following a release of any portion of the Lien of a Mortgage following a Casualty or Condemnation (but taking into account any proposed Restoration of the remaining Property), the ratio of the unpaid principal balance of the Loan to the contrary contained herein value of the remaining Property(ies) are greater than 125% (such value to be determined, in Lender’s sole discretion, by any commercially reasonable method permitted to a REMIC Trust; and provided that an Event which shall exclude the value of Default shall not then be continuingpersonal property or going concern value, if any Proceeds or any), the principal balance of the Loan must be paid down by an amount equal to the least of the following amounts: (i) the net Award are not required to be made available for a Restoration and are retained and applied by Lender toward the (after payment of Lender’s costs and expenses and any other fees and expenses that have been approved by Lender) plus the Debt, Borrowers shall have net proceeds from the right, within 120 days after Lender applies such Proceeds receipt of any insurance or Award tort settlement with respect to the Debtproperty, to obtain (ii) the fair market value of the released property at the time of the release plus the amount of any tort or insurance settlement that is expected to be, or has been, received with respect to the property and that is not reflected directly or indirectly in the property’s fair market value at the time of the affected Property from release, or (iii) an amount such that the loan-to-value ratio of the Loan (as so determined by Lender) does not increase after the release, unless Lender receives an opinion of counsel that if such amount is not paid, the Loan will not fail to maintain its status as a “qualified mortgage” within the meaning of Section 860G(a)(3)(A) of the Code as a result of the related release of such portion of the Lien of the Mortgage encumbering Mortgage. If and to the extent the preceding sentence applies, only such Property by paying to Lender the Release Amount for such Property (minus the amount of the Proceeds or Award applied by Lender towards net Award, if any, in excess of the Debt) and such prepayment amount required to pay down the principal balance of the Loan shall may be without any Yield Maintenance Premiumreleased for purposes of Restoration or released to Borrowers as otherwise expressly provided in this Section 7.4.