Common use of Application to Debt Clause in Contracts

Application to Debt. Subject to the Borrower's and Manager's rights under Section 7.4.3, in the event and to the extent such Proceeds or Award, as applicable, are not required to be made available to Manager and/or Borrower to be used for the repair, restoration and replacement of the Improvements, Equipment and Inventory for which a loss or damage has occurred, or in the event the Manager and/or Borrower fails to timely make such election or having made such election fails to timely comply with or is otherwise unable to satisfy the terms and conditions set forth herein, upon five (5) Business Days prior notice to the Borrower and Manager, Lender shall be entitled to the payment of Proceeds or Award, as applicable, to pay and, without consent from either Borrower or Manager to apply such Proceeds or Award, as applicable, or the balance thereof, at Lender's option either (x) to the full or partial payment or prepayment of the Debt in accordance with this Agreement or (y) to the repair, restoration and/or replacement of all or any part of such Improvements, Equipment and Inventory for which a loss or damage has occurred.