Common use of Damage and Casualty Clause in Contracts

Damage and Casualty. Except as provided in the indemnity provisions contained in Paragraph 7.1 of this Agreement, Seller shall bear all risk of loss with respect to the Property up to the Closing Date. Notwithstanding the foregoing, in the event of damage to the Property by fire or other casualty prior to the Closing Date, repair of which would cost less than or equal to $100,000.00 (as determined by Seller and Purchaser in good faith) Purchaser shall not have the right to terminate its obligations under this Agreement by reason thereof, unless otherwise specifically set forth herein, but Seller shall have the right to elect to either repair and restore the Property (in which case the Closing Date shall be extended until completion of such restoration) or to assign and transfer to Purchaser on the Closing Date all of Seller's right, title and interest in and to all insurance proceeds paid or payable to Seller on account of such fire or casualty and in addition, Seller shall pay to Purchaser the amount of any deductible maintained by Seller under any insurance policy covering such fire or casualty. Seller shall promptly notify Purchaser in writing of any such fire or other casualty and Seller's determination of the cost to repair the damage caused thereby. In the event of damage to the Property by fire or other casualty prior to the Closing Date, repair of which would cost in excess of $100,000.00 (as determined by Seller and Purchaser in good faith), then this Agreement may be terminated at the option of Purchaser, which option shall be exercised, if at all, by Purchaser's written notice thereof to Seller within fifteen (15) business days after Purchaser receives written notice of such fire or other casualty (which notice shall specifically call Purchaser's attention to this Paragraph 6.1 and state that Purchaser has fifteen (15) business days to respond), and upon the exercise of such option by Purchaser this Agreement shall become null and void, the Earnest Money deposited by Purchxxxx xxall be returned to Purchaser together with interest thereon, and neither party shall have any further liability or obligations hereunder. In the event that Purchaser does not exercise the option set forth in the preceding sentence, the Closing shall take place on the Closing Date and Seller shall assign and transfer to Purchaser on the Closing Date all of Seller's right, title and interest in and to all insurance proceeds paid or payable to Seller on account of the fire or casualty and in addition, Seller shall pay to Purchaser the amount of any deductible maintained by Seller under any insurance policy covered by such fire or casualty. Seller represents, warrants and covenants that it will maintain property damage insurance insuring the Property for its full replacement cost during the executory period of this Agreement.

Damage and Casualty. Except as provided in the indemnity provisions contained in Paragraph 7.1 of this Agreement, Seller shall bear all risk of loss with respect to the Property up to the Closing Date. Notwithstanding the foregoing, in the event of damage to the Property by fire or other casualty prior to the Closing Date, repair of which would cost less than or equal to $100,000.00 (as determined by Seller and Purchaser in good faith) Purchaser shall not have the right to terminate its obligations under this Agreement by reason thereof, unless otherwise specifically set forth herein, but Seller shall have the right to elect to either repair and restore the Property (in which case the Closing Date shall be extended until completion of such restoration) or to assign and transfer to Purchaser on the Closing Date all of Seller's right, title and interest in and to all insurance proceeds paid or payable to Seller on account of such fire or casualty and in addition, Seller shall pay to Purchaser the amount of any deductible maintained by Seller under any insurance policy covering such fire or casualty. Seller shall promptly notify Purchaser in writing of any such fire or other casualty and Seller's determination of the cost to repair the damage caused thereby. In the event of damage to the Property by fire or other casualty prior to the Closing Date, repair of which would cost in excess of $100,000.00 (as determined by Seller and Purchaser in good faith), then this Agreement may be terminated at the option of Purchaser, which option shall be exercised, if at all, by Purchaser's written notice thereof to Seller within fifteen (15) business days after Purchaser receives written notice of such fire or other casualty (which notice shall specifically call Purchaser's attention to this Paragraph 6.1 and state that Purchaser has fifteen (15) business days to respond), and upon the exercise of such option by Purchaser this Agreement shall become null and void, the Earnest Money Deposit deposited by Purchxxxx xxall Purchaser shall be returned to Purchaser together with interest thereon, and neither party shall have any further liability or obligations hereunder. In the event that Purchaser does not exercise the option set forth in the preceding sentence, the Closing shall take place on the Closing Date and Seller shall assign and transfer to Purchaser on the Closing Date all of Seller's right, title and interest in and to all insurance proceeds paid or payable to Seller on account of the fire or casualty and in addition, Seller shall pay to Purchaser the amount of any deductible maintained by Seller under any insurance policy covered by such fire or casualty. Seller represents, warrants and covenants that it will maintain property damage insurance insuring the Property for its full replacement cost during the executory period of this Agreement.