Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect to the Project shall be applied by the Company toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid. (b) The Net Proceeds of the insurance carried with respect to the Project (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the Company), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, shall be paid to the Trustee and applied as follows: (1) If the amount of the Net Proceeds does not exceed $500,000, the Net Proceeds shall be paid to the Company and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied as provided in (2)(B) below. (2) If the amount of the Net Proceeds exceeds $500,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the Company. At the option of the Company, to be exercised within the period of ninety (90) days from the receipt by the Trustee of such Net Proceeds, the Company shall advise the Trustee that (A) the Company will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the Company), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If the Company does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the Company. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms. (c) The Company agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2) of this Section 6.5 for the repair, replacement, renewal or improvement of the Project, it will restore the Project, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company shall use its own funds to restore or replace the Project. Any balance remaining after any such application of such Net Proceeds shall be paid to the Company. The Company shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company not included in the Project and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Section 6.3 hereof shall be applied by the Company toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project (excluding the Net Proceeds of any business interruption insurance, which shall be paid pursuant to the Company)provisions of Section 6.3 hereof, and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company and shall be applied to the any repair, replacement, renewal or improvement of the Project or at Project, if any, as the Company's election paid to the Trustee and applied as provided in (2)(B) belowCompany deems necessary.
(2) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 6.2 of the Indenture and the provisions of Article XI 11 hereof pending receipt of written instructions from the Company. At the option of the Company, to be exercised within the period of ninety (90) days from the receipt by the Trustee of such Net Proceeds, the Company shall advise the Trustee that (A) the Company will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the Company), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X 10 hereof. If the Company does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article X 10 hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the Company. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2) of this Section 6.5 6.7 for the repair, replacement, renewal or improvement of the Project, it will restore the Project, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company shall use its own funds to restore complete the restoration or replace replacement of the Project. Prior to the commencement of such work, the Trustee may require the Company to furnish a completion bond, escrow deposit or other satisfactory evidence of the Company's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the Company. The Company shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company not included in the Project and not providing security for the Note or this Loan Lease Agreement.
Appears in 1 contract
Samples: Lease Agreement (Laralev Inc)
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Except as otherwise agreed to by the Credit Facility Issuer during such time as a Credit Facility is in effect, the Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Except as otherwise provided in the Reimbursement Agreement (which shall govern during such time that the Credit Facility is in effect), the Net Proceeds of the insurance carried with respect to the Project pursuant to the provisions of Sections 6.3(a) and (d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the Company), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company and shall be applied to the any repair, replacement, renewal or improvement of the Project or at Project, if any, as the Company's election paid to the Trustee and applied as provided in (2)(B) belowCompany deems necessary.
(2) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 502 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the Company. At the option of the Company, to be exercised within the period of ninety (90) days from the receipt by the Trustee of such Net Proceeds, the Company shall advise the Trustee that (A) the Company will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the Company), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X Section 10.1 hereof. If the Company does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the Company. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2) of this Section 6.5 6.8 for the repair, replacement, renewal or improvement of the Project, it will restore the Project, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company shall use its own funds to restore complete the restoration or replace replacement of the Project. Prior to the commencement of such work, the Trustee may require the Company to furnish a completion bond, escrow deposit or other satisfactory evidence of the Company's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the Company. The Company shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company not included in the Project and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Samples: Loan Agreement (Aaron Rents Inc)
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project pursuant to the provisions of Sections 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business -25- 30 interruption insurance, which shall be paid to the Company), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied as provided in (2)(B) belownecessary.
(2) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 6.2 of the Indenture and the provisions of Article XI 11 hereof pending receipt of written instructions from the Company. At the option of the Company, to be exercised within the period of ninety (90) days from the receipt by the Trustee of such Net Proceeds, the Company shall advise the Trustee that (A) the Company will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the Company), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X 10 hereof. If the Company does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment of the Bonds pursuant to Article X 10 hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the Company. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2Section 6.8(b)(2) of this Section 6.5 for the repair, replacement, renewal or improvement of the Project, it will restore the Project, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company shall use its own funds to restore or replace the Project. Prior to the commencement of such work, the Trustee may require the Company to furnish a completion bond, escrow deposit or other satisfactory evidence of the Company's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the Company. The Company shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company not included in the Project and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of SECTIONS 6.3(b) and 6.3(c) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project Plant pursuant to the provisions of SECTIONS 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1i) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied Plant as provided in (2)(B) belownecessary.
(2ii) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) 90 days from the receipt by the Trustee of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project Plant (such funds to be delivered by the Trustee to the CompanyBorrower), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article ARTICLE X hereof. If the Company Borrower does not advise the Trustee within said period of ninety (90) 90 days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the ProjectPlant, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article ARTICLE X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date interest payment date not less than thirty (30) 45 days after the earlier of notice of the Borrower's election to prepay the Bonds or expiration of said period of ninety (90) 90 days without an election by the CompanyBorrower. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company Borrower agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection SUBSECTION (b)(2b)(ii) of this Section 6.5 SECTION 6.8 for the repair, replacement, renewal or improvement of the ProjectPlant, it will restore the ProjectPlant, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the ProjectPlant, the Company Borrower shall use its own funds to restore or replace the ProjectPlant. Prior to the commencement of such work, the Trustee may require the Borrower to furnish a completion bond, escrow deposit, or other satisfactory evidence of the Borrower's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the CompanyBorrower. The Company Borrower shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company Borrower not included in the Plant or the Project Site and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Samples: Loan Agreement (Genlyte Group Inc)
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project Plant pursuant to the provisions of Sections 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1i) If the amount of the Net Proceeds does not exceed $500,000100,000, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied Plant as provided in (2)(B) belownecessary.
(2ii) If the amount of the Net Proceeds exceeds $500,000100,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) 90 days from the receipt by the Trustee of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project Plant (such funds to be delivered by the Trustee to the CompanyBorrower), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If the Company Borrower does not advise the Trustee within said period of ninety (90) 90 days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the ProjectPlant, such Net Proceeds shall be applied to the repayment prepayment of the Bonds bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date interest payment date not less than thirty (30) 45 days after the earlier of notice of the Borrower's election to prepay the Bonds or expiration of said period of ninety (90) 90 days without an election by the CompanyBorrower. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company Borrower agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2b)(ii) of this Section 6.5 6.8 for the repair, replacement, renewal or improvement of the ProjectPlant, it will restore the ProjectPlant, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the ProjectPlant, the Company Borrower shall use its own funds to restore or replace the ProjectPlant. Prior to the commencement of such work, the Trustee may require the Borrower to furnish a completion bond, escrow deposit, or other satisfactory evidence of the Borrower's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the CompanyBorrower. The Company Borrower shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company Borrower not included in the Plant or the Project Site and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project pursuant to the provisions of Sections 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1i) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied as provided in (2)(B) belownecessary.
(2ii) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) 90 days from the receipt by the Trustee of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the CompanyBorrower), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If the Company Borrower does not advise the Trustee within said period of ninety (90) 90 days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date interest payment date not less than thirty (30) 30 days after the earlier of notice of the Borrower's election to prepay the Bonds or expiration of said period of ninety (90) 90 days without an election by the CompanyBorrower. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company Borrower agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2b)(ii) of this Section 6.5 6.8 for the repair, replacement, renewal or improvement of the Project, it will restore the Project, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company Borrower shall use its own funds to restore or replace the Project. Prior to the commencement of such work, the Trustee may require the Borrower to furnish a completion bond, escrow deposit, or other satisfactory evidence of the Borrower's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the CompanyBorrower. The Company Borrower shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company Borrower not included in the Project Site and not providing security for the Note Notes or this Loan Agreement.
Appears in 1 contract
Samples: Loan Agreement (Heico Corp)
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project Plant pursuant to the provisions of Sections 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower, but including any Net Proceeds from title insurance), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1i) If the amount of the Net Proceeds does not exceed $500,00050,000, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project Plant as necessary. Any residual amount of Net Proceeds not applied to the repair, replacement, renewal or at improvement of the Company's election Plant shall be promptly paid to the Trustee and applied as provided for deposit in (2)(B) belowthe Loan Repayments Account of the Bond Fund.
(2ii) If the amount of the Net Proceeds exceeds $500,00050,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) 90 days from the receipt by the Trustee of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project Plant (such funds to be delivered disbursed by the Trustee to the CompanyBorrower following substantially the same procedure for the disbursement of the proceeds of the Bonds from the Facility Fund), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If the Company Borrower does not advise the Trustee within said period of ninety (90) 90 days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the ProjectPlant, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date interest payment date not less than thirty (30) 30 days after the earlier of notice of the Borrower's election to prepay the Bonds or expiration of said period of ninety (90) 90 days without an election by the CompanyBorrower. Notwithstanding The Borrower shall deposit with the foregoingTrustee an amount that together with moneys representing Net Proceeds, shall be sufficient so long as a Credit Facility is that upon redemption no Bonds are in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) denomination other than Authorized Denominations. The Company Borrower agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2b)(ii) of this Section 6.5 6.8 for the repair, replacement, renewal or improvement of the ProjectPlant, it will restore the ProjectPlant, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the ProjectPlant, the Company Borrower shall use its own funds to restore or replace the ProjectPlant. Prior to the commencement of such work, the Trustee, the Issuer or the Credit Facility Issuer may require the Borrower to furnish a completion bond, escrow deposit, or other satisfactory evidence of the Borrower's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds Proceeds, shall be promptly paid to the CompanyTrustee for deposit in the Loan Repayment Account of the Bond Fund. The Company Borrower shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company Borrower not included in the Project Plant or the Facility Site and not providing security for the Note or this Loan Agreement.
Appears in 1 contract
Application of Net Proceeds of Insurance and Eminent Domain. (a) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3(b) and 6.3(c) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid.
(b) The Net Proceeds of the insurance carried with respect to the Project Plant pursuant to the provisions of Sections 6.3(a) and 6.3(d) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1i) If the amount of the Net Proceeds does not exceed $500,000, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied Plant as provided in (2)(B) belownecessary.
(2ii) If the amount of the Net Proceeds exceeds $500,000, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) 90 days from the receipt by the Trustee Borrower of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project (such funds to be delivered by the Trustee to the Company)Plant, or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If hereof (and the Company does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use Borrower shall transfer such Net Proceeds to be used to prepay the Bonds to the Trustee). The Borrower agrees that if it shall elect to use the Net Proceeds pursuant to subsection (b)(ii) of this Section 6.8 for the repair, replacement, renewal or improvement of the Project, such Net Proceeds shall be applied to the repayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the Company. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2) of this Section 6.5 for the repair, replacement, renewal or improvement of the ProjectPlant, it will restore the ProjectPlant, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the Project, the Company shall use its own funds to restore or replace the Project. Any balance remaining after any such application of such Net Proceeds shall be paid to the Company. The Company shall be entitled to the Net Proceeds of any insurance or resulting from Eminent Domain relating to property of the Company not included in the Project and not providing security for the Note or this Loan Agreement.
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Application of Net Proceeds of Insurance and Eminent Domain. (a1) The Net Proceeds of the insurance carried with respect pursuant to the Project provisions of Sections 6.3, 6.4(c) and 6.4(d) hereof shall be applied by the Company Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid, provided that if the Borrower does not cause promptly, and in any event within ninety (90) days of receipt, the Net Proceeds of the insurance carried pursuant to the provisions of Section 6.3 to be so applied to the full and complete extinguishment of the applicable defect or claim, then such Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof.
(b2) The Net Proceeds of the insurance carried with respect to the Project New Facility pursuant to the provisions of Sections 6.4(a), 6.4(b) and 6.4(e) hereof (excluding the Net Proceeds of any business interruption insurance, which shall be paid to the CompanyBorrower), and the Net Proceeds resulting from Eminent Domain, except as hereinafter provided, Domain shall be paid to the Trustee and applied as follows:
(1) If the amount of the Net Proceeds does not exceed $500,00050,000.00, the Net Proceeds shall be paid to the Company Borrower and shall be applied to the repair, replacement, renewal or improvement of the Project or at the Company's election paid to the Trustee and applied New Facility as provided in (2)(B) belownecessary.
(2) If the amount of the Net Proceeds exceeds $500,00050,000.00, the Net Proceeds shall be paid to and held by the Trustee as a special trust fund account in the Project Fund and invested in accordance with Section 602 of the Indenture and the provisions of Article XI hereof pending receipt of written instructions from the CompanyBorrower. At the option of the CompanyBorrower, to be exercised within the period of ninety (90) days from the receipt by the Trustee of such Net Proceeds, the Company Borrower shall advise the Trustee that (A) the Company Borrower will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project New Facility (such funds to remain with the Trustee and to be delivered drawn down by the Trustee to Borrower as provided in the CompanyIndenture in the case of withdrawals from the Project Fund), or (B) the Net Proceeds shall be applied to the prepayment of the Bonds as provided in Article X hereof. If the Company Borrower does not advise the Trustee within said period of ninety (90) days that it elects to proceed under clause (A) to use such Net Proceeds for the repair, replacement, renewal or improvement of the ProjectNew Facility, such Net Proceeds shall be applied to the repayment prepayment of the Bonds pursuant to Article X hereof. Any prepayment pursuant to the preceding sentence shall be effected on the next Interest Payment Date interest payment date not less than thirty (30) days after the expiration of said period of ninety (90) days without an election by the CompanyBorrower. Notwithstanding the foregoing, so long as a Credit Facility is in effect, in the event of any inconsistency between the terms contained in this Agreement and those contained in the Reimbursement Agreement, the provisions of the Reimbursement Agreement should be deemed to control in accordance with its terms.
(c) The Company Borrower agrees that if it shall elect to use the moneys paid to the Trustee pursuant to subsection (b)(2b)(ii) of this Section 6.5 6.9 for the repair, replacement, renewal or improvement of the ProjectNew Facility, it will restore the ProjectNew Facility, or cause the same to be done, to a condition substantially equivalent to its condition prior to the occurrence of the event to which the Net Proceeds were attributable. To the extent that the Net Proceeds are not sufficient to restore or replace the ProjectNew Facility, the Company Borrower shall use its own funds to restore or replace the ProjectNew Facility. Prior to the commencement of such work, the Trustee may require the Borrower to furnish a completion bond, escrow deposit or other satisfactory evidence of the Borrower's ability to pay or provide for the payment of any estimated costs in excess of the amount of the Net Proceeds. Any balance remaining after any such application of such Net Proceeds shall be paid to the CompanyBorrower. The Company Borrower shall be entitled to the Net Proceeds of any insurance or proceeds resulting from Eminent Domain relating to property of the Company Borrower not included in the Project Mortgaged Property and not providing security for the Note or this Loan Agreement.
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Samples: Loan Agreement (Elxsi Corp /De//)