During the continuation of an Event of Default, Administrative Agent may require each Grantor to instruct the insurance carriers that in the event of any loss thereunder, the carriers shall make payment for such loss to Administrative Agent and not to Grantor and Administrative Agent jointly. All loss recoveries received by Administrative Agent upon any such insurance, during the continuation of an Event of Default, may be applied to the Secured Obligations by Administrative Agent in accordance with the terms of the Credit Agreement, and any deficiency thereon shall be paid by Grantors to Administrative Agent, on demand.