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Mortgage, Assignment of Rents, Security Agreement and Fixture Filing Page 19 the event Net Proceeds shall be insufficient to repair, restore or rebuild the said improvements, Borrower or its lessee shall deposit with the Governmental Lender, or a title company designated by the Governmental Lender, funds equaling such deficiency, which, together with the Net Proceeds, shall be sufficient to restore, repair and rebuild the Premises. (d) A statement of the Borrower’s architect, certifying the extent of the repair and restoration completed to the date thereof, and that such repairs, restoration and rebuilding have been performed to date in conformity with the plans and specifications approved by the Governmental Lender, together with appropriate evidence of payment for labor or materials furnished to the Premises, and total or partial lien waivers substantiating such payments. (e) A waiver of subrogation from any insurer who claims that it has no claim as to the Borrower or the then owner or other insured under the policy of insurance in question. (f) Such performance and payment bonds, and such insurance, in such amounts, issued by such company or companies and in such forms and substance, as are required by the Governmental Lender. (g) Evidence that zoning, building and other necessary permits and approvals have been obtained. In the event Borrower shall fail to commence and diligently pursue the restoration, repair or rebuilding of the improvements upon the Premises within a reasonable time, then such failure shall constitute an Event of Default and the Governmental Lender, at its option, and upon not less than thirty (30) days written notice to Borrower, may in addition to its remedies in Article 8 hereof (i) commence to restore, repair or rebuild the said improvements for or on behalf of Borrower, and its tenants, and for such purpose, may perform all necessary acts to accomplish such restoration, repair or rebuilding or (ii) apply all or any part of Net Proceeds on account of the last maturing installment of the Indebtedness whether then due or not. In the event Net Proceeds shall exceed the amount necessary to complete the repair, restoration or the rebuilding of the improvements upon the Premises, such excess may, at Governmental Lender’s option, be applied on account of the last maturing installments of the Indebtedness, irrespective of whether such installments are then due and payable without application of a prepayment fee. 4.3 The Governmental Lender to Make Insurance Proceeds Available Under Certain Conditions. In the event of insured damage to the improvements on the Premises, the Governmental Lender agrees to make the proceeds available to the restoration or repair of the improvements on the Premises in accordance with the provisions of 4.2 hereof provided: (a) satisfactory evidence is delivered to the Governmental Lender that the total cost of restoration and repair does not exceed the then outstanding principal balance of the Project Note; (b) satisfactory evidence is delivered to the Governmental Lender that the improvements can be rebuilt substantially to the same as those originally financed and can with restoration and repair continue to be operated for the purposes utilized prior to such damage; (c) no Event of Default shall exist