Common use of Application of Casualty Insurance Proceeds Clause in Contracts

Application of Casualty Insurance Proceeds. Any proceeds collected (the “Proceeds”) under any casualty insurance policy described in this Agreement shall be disbursed to Borrower as provided below, but only upon fulfillment of each of the following conditions (the “Restoration Conditions”) within one hundred twenty (120) days following the occurrence of the damage for which the Proceeds are collected: (a) Borrower shall have demonstrated to Bondowner Representative’s reasonable satisfaction that the Proceeds (together with amounts deposited by Borrower pursuant to subparagraph (b)) will be adequate to repair the Improvements and to restore the fair market value of the Property, within a time period reasonably determined by Bondowner Representative, to at least the value it had immediately prior to sustaining the damage. Such demonstration shall include delivery to Bondowner Representative of (i) plans and specifications reasonably satisfactory to Bondowner Representative and (ii) a construction contract in form and content, and with a contractor, reasonably satisfactory to Bondowner Representative. (b) To the extent that the Proceeds are insufficient to accomplish the restoration required above, Borrower shall have delivered funds (the “Shortfall Funds”) in the amount of such shortfall, which funds shall be assigned to Lender as security for Borrower’s obligation hereunder and held and disbursed in the same manner as the Proceeds. (c) Borrower shall have executed such documents as Bondowner Representative requires to evidence and secure Borrower’s obligation to use all amounts disbursed for the diligent restoration of the Property. (d) No Event of Default shall remain uncured (other than any Event of Default which relates to such casualty and will be cured by completion of the repair or restoration).

Application of Casualty Insurance Proceeds. Any ------------------------------------------ proceeds collected (the “"Proceeds”") under any casualty fire or other physical damage insurance policy described in this Agreement Section 11.1. shall be disbursed to Borrower Developer as provided below, in Section 11.4 but only upon fulfillment of each of the following conditions (the “Restoration Conditions”) within one hundred twenty (120) 180 days following the occurrence of the damage for which the Proceeds are collected: (a) Borrower Developer shall have demonstrated demonstrate to Bondowner Representative’s Owner's reasonable satisfaction that the Proceeds (Proceeds, together with amounts deposited by Borrower Developer pursuant to subparagraph (b)) immediately below, will be adequate to accomplish the repair and reconstruction of the Improvements and to restore the fair market value of the Property, within a time period reasonably determined by Bondowner Representative, Property to at least the value it had immediately prior to sustaining the damage. Such demonstration shall include delivery to Bondowner Representative Owner of (i) plans and specifications reasonably satisfactory to Bondowner Representative Owner and (ii) a construction contract in form and content, and with a contractor, reasonably satisfactory to Bondowner Representative.Owner, (b) To the extent that the Proceeds are insufficient to accomplish the restoration repairs and reconstruction required pursuant to subparagraph (a) above, Borrower Developer shall have delivered deliver to Owner funds (the “"Shortfall Funds”") in the amount of such shortfall, which funds shall be be, at Owner's option, assigned to Lender Owner as security for Borrower’s obligation Developer's obligations hereunder and held shall be maintained in the Settlement Account with Owner and disbursed in the same manner as the Proceeds; provided that in the event it becomes necessary for Developer to deliver Shortfall Funds to Owner, Developer shall have the option to purchase the Project upon ten days' prior notice for a purchase price equal to the total Project Costs disbursed by Owner, including any accrued but unpaid interest with respect to such Project Costs, and the payment of all expenses in connection with such purchase, including title insurance, survey, recording fees, environmental reports and reasonable attorneys' fees of Owner. (c) Borrower Developer shall have executed execute such documents documents, in form and content satisfactory to Owner, as Bondowner Representative Owner requires to evidence and secure Borrower’s Developer's obligation to use all amounts disbursed for the diligent restoration prompt repair and reconstruction of the PropertyProperty in accordance with the plans and specifications approved by Owner. (d) No Event of Default There shall remain uncured (other than any have occurred no Event of Default which relates is continuing or has not otherwise been cured or waived, or event which, with the giving of notice or the passage of time or both, would constitute an Event of Default, and Owner shall have received a certificate to such casualty and will be cured that effect signed by completion of the repair or restoration)a Designated Representative.

Application of Casualty Insurance Proceeds. Any proceeds collected (the “"Proceeds”"") under any casualty fire or other physical damage insurance policy described in this Agreement Section 9.11 shall be disbursed to Borrower Company as provided belowin subsection 9.11.2.1, but only upon fulfillment of each of the following conditions (the “Restoration Conditions”) within one hundred twenty (120) 60 days following the occurrence of the damage for which the Proceeds are collected: (a) Borrower Company shall have demonstrated demonstrate to Bondowner Representative’s Bank's reasonable satisfaction that the Proceeds (together with amounts deposited by Borrower Company pursuant to subparagraph subsection (b)) will be adequate to accomplish the repair and reconstruction of the Company Improvements that have been damaged or destroyed, and to restore the fair market value of the Property, within a time period reasonably determined by Bondowner Representative, Company Property to at least the value it had immediately prior to sustaining the damage. Such demonstration shall include delivery to Bondowner Representative Bank of (i) plans and specifications reasonably satisfactory to Bondowner Representative Bank and (ii) a construction contract in form and content, and with a contractor, reasonably satisfactory to Bondowner RepresentativeBank. (b) To the extent that the Proceeds are insufficient to accomplish the restoration repairs and reconstruction required above, Borrower Company shall have delivered deliver to Bank funds (the “"Shortfall Funds”") in the amount of such shortfall, which funds shall be assigned to Lender Bank and Trustee as security for Borrower’s obligation hereunder and held and disbursed in the same manner as the Proceeds.Secured Obligations and (c) Borrower Company shall have executed execute such documents documents, in form and content satisfactory to Bank, as Bondowner Representative Bank requires to evidence and secure Borrower’s Company's obligation to use all amounts disbursed for the diligent restoration prompt repair and reconstruction of the PropertyCompany Property in accordance with the plans and specifications approved by Bank. (d) No Event of Default There shall remain uncured (other than any have occurred no Event of Default which relates remains uncured or event which, with the giving of notice or the passage of time or both, would constitute an Event of Default, and Bank shall have received a certificate to such casualty that effect signed by a Desigm nated Representative. 9.11.2.1 Any Proceeds and will Shortfall Funds to be cured disbursed to Company shall be held by Bank (or Depository, as applicable) in a noninterest-bearing account (or the Construction Fund, as applicable) and disbursed in accordance with Bank's customary construction lending practices. Any amounts remaining undisbursed following completion of (and full payment for) such repairs and reconstruction shall be returned to Company up to the repair amount of any Shortfall Funds deposited by Company, and any other amounts remaining shall, as Bank chooses in its sole and absolute discretion, either (a) be paid to Company or restoration)(b) applied by Bank and/or Depository against (and/or held by Bank as security for) Company's obligations to Bank and Trustee, as their interests in the Company Property then appear. 9.11.2.2 In the event Company fails to fulfill the conditions set forth in subsections 9.11.2(a) through 9.11.2(d) within 60 days following the date on which the damage occurs, the Proceeds shall be applied by Bank and/or Depository against (and/or held by Bank as security for) Company's obligations to Bank and Trustee, as their interests in the Company Property then appear. 9.11.2.3 In the event Bank and/or Depository applies any Proceeds against (and/or Bank holds any Proceeds as security for) any portion of Company's obligations to Bank and Trustee and the fair market value of the Company Property (together with all other collateral then held by Bank and Trustee for such obligations) immediately thereafter is, in

Application of Casualty Insurance Proceeds. Any proceeds collected (the “"Proceeds”") under any casualty fire or other physical damage insurance policy described in this Agreement Section 10.4 shall be disbursed to Borrower Guarantor as provided belowin subsection 10.4.2.1, but only upon fulfillment of each of the following conditions (the “Restoration Conditions”) within one hundred twenty (120) 60 days following the occurrence of the damage for which the Proceeds are collected: (a) Borrower Guarantor shall have demonstrated demonstrate to Bondowner Representative’s Bank's reasonable satisfaction that the Proceeds (together with amounts deposited by Borrower Guarantor pursuant to subparagraph subsection (b)) will be adequate to accomplish the repair and reconstruction of the Improvements improvements of the Guaranty Property that has been damaged or destroyed, and to restore the fair market value of the Property, within a time period reasonably determined by Bondowner Representative, Guaranty Property to at least the value it had immediately prior to sustaining the damage. , Such demonstration shall include delivery to Bondowner Representative Bank of (i) plans and specifications reasonably satisfactory to Bondowner Representative Bank and (ii) a construction contract in form and content, and with a contractor, reasonably satisfactory to Bondowner RepresentativeBank. (b) To the extent that the Proceeds are insufficient to accomplish the restoration repairs and reconstruction required above, Borrower Guarantor shall have delivered deliver to Bank funds (the “"Shortfall Funds”") in the amount of such shortfall, which funds shall be assigned to Lender Bank and Trustee as security for Borrower’s obligation hereunder the Secured Obligations and shall be held and disbursed in the same manner as the Proceeds. (c) Borrower Guarantor shall have executed execute such documents documents, in form and content satisfactory to Bank, as Bondowner Representative Bank requires to evidence and secure Borrower’s Guarantor's obligation to use all amounts disbursed for the diligent restoration prompt repair and reconstruction of the PropertyGuaranty Property in accordance with the plans and specifications approved by Bank. (d) No Event of Default There shall remain uncured (other than any have occurred no Event of Default which relates remains uncured or event which, with the giving of notice or the passage of time or both, would constitute an Event of Default, and Bank shall have received a certificate to such casualty that effect signed by Guarantor and will a Designated Representative. 10.4.2.1 Any Proceeds and Shortfall Funds to be cured disbursed to Guarantor shall be held by Bank in a noninterest- bearing account and disbursed in accordance with Bank's customary construction lending practices. Any amounts remaining undisbursed following completion of (and full payment for) such repairs and reconstruction shall be returned to Guarantor up to the repair amount of any Shortfall Funds deposited by Guarantor, and any other amounts remaining shall, as Bank chooses in its sole and absolute discretion, either (a) be paid to Guarantor or restoration)(b) applied by Bank against (and/or held by bank as security for) the Secured Obligations, as Bank and Trustee's interests in the Guaranty Property then appear. 10.4.2.2 In the event Guarantor fails to fulfill the conditions set forth in subsections 10.4.2(a) through 10.4.2(d) within 60 days following the date on which the damage occurs, the Proceeds shall be applied by Bank against (and/or held by Bank as security for) the Secured Obligations, as Bank and Trustee's interests in the Guaranty Property then appear. 10.4.2.3 In the event Bank applies any Proceeds against (and/or Bank holds any Proceeds as security for) any portion of the Secured Obligations and the fair market value of the Guaranty Property (together with all other collateral then held by Bank and Trustee for such obligations) immediately thereafter is, in Bank's reasonable judgment, inadequate to secure all remaining obligations to Bank and Trustee secured by the applicable Guaranty Deed of Trust, Bank may thereupon require that Guarantor, within 30 days of Bank's written demand, provide additional cash collateral in the minimum amount necessary to adequately secure the shortfall.