14-20 Cedar Glen Bond Ordinance Addendums

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such expiration. Subject to the HUD Mortgage, MBI shall have the right to settle and compromise any and all claims under any of the insurance policies required to be maintained by Borrower under this Agreement; to demand, receive and receipt for all monies payable thereunder; and to execute in the name of Borrower or MBI or both any proof of loss, notice or other instruments in connection with such policies or anyloss thereunder. the HUD Mortgage,all amounts recoverable under any policy are Subject hereby assigned to MBI and, in the event of a loss, each insurance company concerned is hereby authorized and directed to make payment for such loss directly to MBI rather than jointly to MBI and Borrower, and, subject to the HUD Mortgage the amount collected shall be used in any one or more of the following ways, at the option of MBI: (a)applied upon the indebtedness secured by the Loan Documents, whether or not such indebtedness is then due and payable, (b) used to fulfill any of the covenants Property contained herein, or (c) used to replace or restore the Project or Personal op y to a condition satisfactory to MBI. All insurance proceeds applied toward the indebtedness secured hereby shall be applied without the imposition of a prepayment penalty or premium. Subject to the HUD Mortgage, Borrower transfers and grants a security interest, within the meaning of the Uniform Commercial Code as adopted in Indiana, to MBI in and to all monies at any time held by MBI pursuant to this paragraph and such monies and all of Borrower's right, title and interest therein are hereby assigned to MBI, all as additional security for the indebtedness secured by the Loan Documents. Borrower warrants and represents to MBI that Borrower has not received any notice from any insurance company of any defects or inadequacies in the Project which would adversely affect the insurability of the Project or materially increase the cost of insuring the Project beyond that which is customarily charged for similar property in the vicinity of the Project used for a similar purpose. Borrower covenants and agrees to provide to MBI, promptly after receipt by Borrower, copies of any notices received from any insurance company regarding any defects or inadequacies in the Project. Notwithstanding anything contained herein to the contrary, if Borrower provides a written request to MBI within thirty(30)days after the occurrence of any casualty in which improvements located on the Real Estate are damaged, to use the insurance proceeds to restore or rebuild the Project, then MBI shall disburse the net proceeds of any such insurance proceeds received by MBI to or for the benefit of Borrower for the purpose of restoring the Project provided that the following conditions are satisfied in a manner reasonably acceptable to MBI: (a) No material adverse change in the financial condition of Borrower has occurred prior to the loss or casualty; (b) There is no default or event which with the giving of notice or lapse of time would constitute an Event of Default under this Agreement; (c) The Project is to be restored to its original condition prior to the occurrence of the casualty with such modifications as MBI may approve in its reasonable discretion; (d) MBI determines, in its reasonable discretion, that such restoration can be completed to MBI's satisfaction prior to the maturity date of the Note; (e) MBI determines, in its reasonable discretion, that Borrower has sufficient funds available to Borrower, including without limitation anticipated payments from business interruption insurance, to pay when due all costs and expenses relating to the operation of the Project during such restoration; (f) MBI determines, in its reasonable discretion, that such net insurance proceeds together with any additional funds made available for such purpose by Borrower and deposited Page 69