Common use of DAMAGE TO OR DESTRUCTION OF PREMISES Clause in Contracts

DAMAGE TO OR DESTRUCTION OF PREMISES. In the event of any damage to or destruction of the Premises, Borrower shall give prompt written notice to Lender and, provided Lender makes the Proceeds available for the costs of repair, restoration and rebuilding, Borrower shall promptly commence and diligently continue to completion the repair, restoration and rebuilding of the Premises so damaged or destroyed in full compliance with all legal requirements and with the provisions of Section 6.1.F below, and free and clear from any and all liens and claims. Such repair, restoration and rebuilding of the Premises are sometimes hereinafter collectively referred to as the "Work." Borrower shall not adjust, compromise or settle any claim(s) for insurance Proceeds without the prior written consent of Lender unless such claim(s) does not exceed $100,000 in the aggregate in which case no consent of Lender is required. Subject to Sections 6.1E and F, below, Lender shall have the option in its sole discretion to apply any insurance Proceeds it may receive pursuant to the Mortgage (less any cost to Lender of recovering and paying out such Proceeds, including reasonable attorneys' fees) to the payment of the Indebtedness or to allow all or a portion of such Proceeds to be used for the Work. If any insurance Proceeds are applied to reduce the Indebtedness, Lender shall apply the same in the following order:

DAMAGE TO OR DESTRUCTION OF PREMISES. In the event of any damage to or destruction of the Premises, Borrower shall give prompt written notice to Lender and, provided Lender makes the Proceeds available for the costs of repair, restoration and rebuilding, Borrower shall promptly commence and diligently continue to completion the repair, restoration and rebuilding of the Premises so damaged or destroyed in full compliance with all legal requirements and with the provisions of Section 6.1.F below, and free and clear from any and all liens and claims. Such repair, restoration and rebuilding of the Premises are sometimes hereinafter collectively referred to as the "Work." Borrower shall not adjust, compromise or settle any claim(s) for insurance Proceeds without the prior written consent of Lender unless such claim(s) does not exceed $100,000 in the aggregate in which case no consent of Lender is required. Subject to Sections 6.1E and F, below, Lender shall have the option in its sole discretion to apply any insurance Proceeds it may receive pursuant to the Mortgage (less any cost to Lender of recovering and paying out such Proceeds, including reasonable attorneys' fees) to the payment of the Indebtedness or to allow all or a portion of such Proceeds to be used for the Work. If any insurance Proceeds are applied to reduce the Indebtedness, Lender shall apply the same in the following order:: first, to the payment of interest due on any Advances; next, to the principal amount of any Advances; next, to any Late Charges (as provided in the Note); next, to accrued interest then due under the Note; and finally, to the unpaid principal balance of the Note. If Lender applies insurance Proceeds to reduce the Indebtedness, no prepayment fee shall be due with respect to any prepayment effected thereby.