Damage and Destruction. (a) If during the Agreement Term, the Project is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000, the Authority shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss. (b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority and as will not impair operating unity or productive capacity of the Project or the character of the Project as suitable for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net Proceeds. (c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c). (d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.
Appears in 4 contracts
Samples: Project Financing, Construction and Lease Agreement, Project Financing, Construction and Lease Agreement, Project Financing, Construction and Lease Agreement
Damage and Destruction. (a) If during the Agreement Term, the Project is Premises are destroyed or damaged or destroyed, in whole or in part, by fire or other casualtycasualty so that Tenant is unable to occupy the Premises for its Permitted Use, to such extent that Landlord may terminate this Lease effective as of the claim for loss (including any deductible amount pertaining thereto) resulting from such date of the damage or destruction is greater than $1,000,000, by giving Tenant written notice within ten (10) days of the Authority shall promptly notify date of the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or lossdestruction.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority and as will Landlord does not impair operating unity or productive capacity of the Project or the character of the Project as suitable for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under terminate this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures Lease as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement11(a) above, repair, rebuilding or restoration, the Authority may elect to Landlord shall promptly rebuild, repair, repair and restore or replace the Project only if Premises and the Authority shall have provided sufficient funds Building to nonetheless complete the work thereof in excess of the amount of said Net Proceedstheir former condition.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss destruction renders all or part of the Premises untenantable, Rent shall proportionately axxxx commencing on the date of the damage or destruction and ending on the date the Premises are delivered to Tenant with Landlord’s restoration obligation substantially complete. The extent of the Project abatement shall be paid into based upon the Bond Funds pursuant to portion of the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on Premises rendered untenantable, inaccessible or unfit for the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c)Permitted Use.
(d) The Sponsors shall notNotwithstanding anything to the contrary in this Lease, Landlord and Tenant mutually waive their respective rights of recovery against each other and each other’s officers, directors, constituent partners, agents and employees, and Tenant waives such rights against each lessor under any ground or underlying lease and each lender under any mortgage or deed of trust or other lien encumbering the Property or any portion thereof or interest therein, to the extent any loss is or would be covered by reason fire, extended coverage, or other property insurance policies required to be carried under this Lease or otherwise carried by the waiving party, and the rights of the inability insurance carriers of such policy or policies are to be subrogated to the rights of the Sponsors or insured under the Authority applicable policy. Each party shall cause its insurance policy to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of be endorsed to evidence compliance with such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Sectionwaiver.
Appears in 2 contracts
Samples: Lease Agreement (Motorsport Gaming Us LLC), Lease Agreement (Motorsport Gaming Us LLC)
Damage and Destruction. (a) If during the Agreement Term, the Project or the Project Site is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such destruction or damage or destruction is not greater than $1,000,00025,000, the Authority shall Corporation will continue to pay Basic Rent and all other additional rent and payments required to be paid hereunder and will promptly notify repair, rebuild or restore the Trustee in writing property damaged and will apply for such purpose so much as to may be necessary of Net Proceeds of insurance resulting from claims for such losses, as well as any additional moneys of the nature and extent Corporation necessary therefor. If the cost of such damage or loss repairs, rebuilding and whether it restoration is practicable and desirable to rebuildless than the amount of Net Proceeds of the insurance referable thereto, repair, restore or replace the Corporation may retain the amount by which such damage or lossinsurance proceeds exceed said total cost.
(b) If the Authority shall determine Project or the Project Site is destroyed or is damaged to such extent that the claim for loss resulting from such rebuildingdestruction or damage is in excess of $25,000, repairing, restoring or replacing is practicable the Corporation will continue to pay Basic Rent and desirable, all other additional rent and payments required to be paid hereunder and will promptly give written notice of such damage and destruction to the Bondholder and the Authority Issuer. All Net Proceeds of insurance resulting from claims for such losses shall be paid to the Bondholder, whereupon
(1) the Corporation, or the Issuer at the direction of the Corporation, will proceed promptly with and complete with reasonable dispatch such rebuildingto repair, repairing, restoring rebuild or replacing of restore the property damaged or destroyed so as to place the Project in substantially the same condition as in which it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Corporation and as will not impair the operating unity or productive capacity of the Project or its character as a "project" under the character Enabling Law, and (2) the Bondholder will pay the costs of such repair, rebuilding or restoration, either on completion thereof, or as the Project as suitable for the purposes work progresses, upon appropriate verification of the Authority pursuant to the Actcosts. In such caseThe balance, any if any, of Net Proceeds of casualty insurance required under this Agreement and received with respect to any remaining after the payment of all of the costs of such damage repair, rebuilding or loss restoration shall be applied to the Projectredemption of the Bond in whole or in part (depending on the amount of such excess) in the same manner and order specified in Section 8.07 of the Indenture for moneys collected or held by the Bondholder, or, if such Net Proceeds exceeds $1,000,000the Bond is fully paid, shall be paid to the Trustee and shall be deposited into a separate account to be established in Corporation.
(c) In the Construction Fund and if such event the Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds insurance are not sufficient to pay in full the costs of such replacement, repairrepairing, rebuilding or restorationand restoring the Project as provided in this Section, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to Corporation will nonetheless complete the work thereof and will pay that portion of the costs thereof in excess of the amount of said Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring Proceeds or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss will pay to the Project shall be paid into Bondholder for the Bond Funds pursuant account of the Issuer the moneys necessary to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become duecomplete said work. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors Corporation shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or not by reason of the payment of such excess costs (whether by direct payment thereof or payment to the costs of such rebuilding, repairing, restoring or replacing, Bondholder therefor) be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds Issuer or any abatement or diminution of the Sponsor Payments rents payable by hereunder.
(d) Anything in this Section to the Sponsors under this Agreement contrary notwithstanding, if as a result of such damage or destruction (regardless of whether the loss resulting therefrom is greater than $25,000 or not) the Corporation is entitled to exercise an option to purchase the Project and duly does so in accordance with Section 11.03 hereof, then neither the Corporation nor the Issuer shall be required to repair, rebuild or restore the property damaged or destroyed, and so much (which may be all) of any other obligations Net Proceeds referable to such damage or destruction as shall be necessary to provide for full payment of the Sponsors or Bond shall be paid to the Authority under this Agreement except as expressly provided in this SectionBondholder and the excess thereafter remaining (if any) shall be paid to the Corporation.
Appears in 1 contract
Samples: Lease Agreement (Cavalier Homes Inc)
Damage and Destruction. (a) If during the Agreement Term, the Project is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,0001,000250,000, the Authority shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority and as will not impair operating unity or productive capacity of the Project or the character of the Project as suitable for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,0001,000250,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,0001,000250,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net Proceeds.
(c) If the Authority Authority, after consultation with the Sponsors, shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders HoldersOwners of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.
Appears in 1 contract
Samples: Project Financing, Construction and Lease Agreement
Damage and Destruction. If prior to full payment of the Bonds (a) If during or provision for payment thereof having been made in accordance with the Agreement Termprovisions of the Trust Agreement), the Project is Facilities shall be damaged or destroyedpartially or totally destroyed by fire, in whole or in partflood, by fire windstorm, or other casualtycasualty at any time during the Lease Term, there shall be no abatement or reduction in the rent payable by the Company under this Lease, and, to such the extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is not greater than $1,000,00050,000 the Company (i) will promptly repair, the Authority shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, replace or restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Company and as will not impair operating unity or productive capacity of make the Project or the character of unsuitable for the Project Purposes, and (ii) will apply for such purpose so much as suitable for the purposes may be necessary of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to policies resulting from claims for such losses not in excess of $50,000 as well as any additional moneys of the Company necessary therefor. All Net Proceeds of insurance resulting from claims for any such damage or loss to the Project, if such Net Proceeds exceeds not in excess of $1,000,000, 50,000 shall be paid to the Trustee and Company. If prior to fall payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement), the Project Facilities shall be deposited into a separate account destroyed (in whole or in part) or damaged by fire, flood, windstorm or other casualty to be established such extent that the claim for loss resulting from such destruction or damage is in excess of $50,000 the Construction Fund Company shall promptly give written notice thereof to the Director and if such the Trustee. All Net Proceeds do not exceed of insurance policies resulting from claims for such losses in excess of $1,000,000, such Net Proceeds 50,000 shall be paid to and held by the Authority. Such Net Trustee in the Collateral Proceeds Account, whereupon, unless the Company shall be used and applied have elected to exercise its option to purchase the Project pursuant to the provisions of Section 10.2(a) of this Lease, (i) in accordance the Company will proceed to repair, rebuild, replace or restore the property damaged or destroyed with such changes, alterations and modifications (including the disbursement requirements substitution and addition of Section 3.8 hereof if required to other property) as may be deposited in desired by the Construction FundCompany and as will not make the Project unsuitable for tile Project Purposes, and (iih) the Trustee will disburse moneys in the Collateral Proceeds Account to or upon the direction of the Company for payment of the purpose of paying the cost costs of such repair, rebuilding, repairingreplacement or restoration, restoring or replacing such damage or losseither on completion thereof or, if the Company shall so request, as the work progresses. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing disbursements shall be deposited into the Bond Funds made pursuant to the Project Indentures as provided procedures set forth in Section 10.4 hereof3.3 of this Lease for disbursement of moneys in the Project Fund, including, but not limited to, the requirement that the Company obtain the written approval of the Director with respect to each disbursement. If such Net In the event the moneys in the Collateral Proceeds Account are not sufficient to pay in full MI the costs of such replacement, repair, rebuilding rebuilding, replacement or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to Company nonetheless will complete the work thereof in excess of the amount of said Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become duecosts thereof from its own resources. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors Company shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacingexcess costs, be entitled to any reimbursement from the Authority, the Trustee Director or the Holders any diminution in or postponement of the Project Bonds or any abatement or diminution rents payable under Section 4.3 of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this SectionLease.
Appears in 1 contract
Samples: Lease (Luiginos Inc)
Damage and Destruction. (aUnless Payment of the Bonds has ---------------------- occurred or the Borrower has provided for the redemption of all of the Bonds pursuant to an extraordinary optional redemption, in accordance with Section 401(b) If during of the Agreement TermIndenture, if all or any part of the Project is destroyed or damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that then the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000, the Authority Borrower shall restore promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing before such damage or destruction, with such changes, alterations and modifications (including additions as the substitution Borrower may determine and addition of other property) as may be desired by the Authority and as which will not impair operating unity the capacity or productive capacity of the Project or the character of the Project as suitable for the purposes purpose for which it then is being used or is intended to be used. Any Net Proceeds paid to the Trustee shall be deposited in a sub-account of the Authority pursuant to Bond Fund created for this purpose. The Borrower may apply so much as may be necessary of the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to on account of any such damage or loss destruction to the Project, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements payment of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuildingrestoration, repairing, restoring either on completion or replacing such damage or loss. Any Net Proceeds remaining as the work progresses but only after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant delivery to the Project Indentures Trustee of a certificate or certificates from the Borrower containing such information regarding the restoration as provided in Section 10.4 hereofthe Trustee may reasonably require. If such Net Proceeds are not sufficient to pay in full the costs cost of such replacement, repair, rebuilding or restoration, then the Authority Borrower shall pay so much of the cost as may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof be in excess of the amount of said such Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any . Any balance of Net Proceeds of casualty insurance required held by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall notTrustee, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the after payment of the costs cost of such rebuildingrestoration shall be deposited in a separate segregated sub-account in the Bond Fund, repairing, restoring or replacing, be entitled to any reimbursement from invested in accordance with Section 801 of the Authority, Indenture and used by the Trustee or the Holders to redeem Bonds in accordance with Section 703(a) of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this SectionIndenture.
Appears in 1 contract
Damage and Destruction. (a) If during the Agreement Term, the Project is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000250,000, the Authority shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority and as will not impair operating unity or productive capacity of the Project or the character of the Project as suitable for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000250,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000250,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net Proceeds.
(c) If the Authority Authority, after consultation with the Sponsors, shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders Owners of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.
Appears in 1 contract
Samples: Project Financing, Construction and Lease Agreement
Damage and Destruction. (a) If during prior to payment in full of the Agreement Term, Bonds the Project is damaged or destroyed, in whole or in part, by fire or other casualty, casualty to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is not greater than $1,000,000the amount of the deductible under the insurance policy required by Section 6.03(A), the Authority Company shall promptly notify be obligated to continue to pay the Trustee in writing as amounts required to be paid pursuant to the nature Note and extent Section 4.03 hereof. In the event of such damage or destruction, the Company shall proceed promptly to and shall substantially restore the property damaged or destroyed. If prior to payment in full of the Bonds the Project is destroyed or is damaged by fire or other casualty to such extent that the claim for loss resulting from such destruction or damage is in excess of the amount of the deductible under the insurance policy required by Section 6.03(A), the Company shall be obligated to continue to pay the amounts required to be paid pursuant to the Note and whether it is practicable and desirable to rebuild, repair, restore or replace Section 4.03 hereof. In the event of such damage or loss.
(b) If destruction, the Authority shall determine that Company, provided there is no Event of Default pursuant to this Agreement or any other Financing Document, with the approval of the Trustee, may adjust, settle or compromise claims under such rebuilding, repairing, restoring or replacing is practicable and desirable, policies and the Authority proceeds therefrom shall proceed promptly be paid to the Company. Should an Event of Default pursuant to this Agreement or any other Financing Document be existing, the right provided for in the prior sentence shall be in the Trustee and any proceeds received from any adjustment, settlement or compromise shall be paid to the Trustee. The party that had the right to adjust, settle or compromise pursuant to the prior two (2) sentences, may either (i) apply the Net Proceeds of insurance or any part thereof, together with and complete with reasonable dispatch such rebuildingany additional required funds furnished by the Company, repairingto prepayment of the Note in full, restoring or replacing of (ii) require the Company to repair, replace or reconstruct the property damaged or destroyed so and disburse the proceeds to the Company to be applied against the costs and expenses thereof as incurred or paid by the Company. The Trustee shall apply the Net Proceeds of insurance received by it to payment of the costs for such replacement, repair, rebuilding or restoration as may be required for the property damaged or destroyed to be substantially restored, either on completion thereof or as the work progresses, as directed by the Company. Each such direction of the Company shall be accompanied by a requisition, signed by the Authorized Company Representative, certifying, as to place the replacement, repair, rebuilding or restoration and as to the Net Proceeds of insurance held by the Trustee, to the same effect as the form of requisition, signed by the Authorized Company Representative, for disbursements from the Construction Fund is required by Section 2.03 hereof to certify, as to the construction and equipping of the Project and as to the Construction Fund. The Trustee may conclusively rely upon such direction of the Company and shall have no liability or responsibility for payments made pursuant to this Section in reliance thereon. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Company shall nonetheless complete the work thereof and shall pay that portion of the costs thereof in excess of the amount of Net Proceeds. The Company shall not, by reason of the payment of such excess costs, be entitled to any reimbursement from the Issuer or the Trustee or any abatement, diminution or postponement of the amounts payable under the Note or Section 4.03 hereof. Notwithstanding the foregoing, if an Event of Default exists under this Agreement, the Trustee shall apply the Net Proceeds as the Trustee in its sole discretion shall determine to be in the best interests of the Holder of the Bond. Any balance of Net Proceeds remaining after payment of all the costs of replacement, repair, rebuilding or restoration required to substantially restore the property damaged or destroyed shall be paid into the Bond Fund (and invested as provided in Section 7.03 hereof) and used for redemption of the Bonds at the earliest date on which such redemption may be effected pursuant to the Indenture. If payment in full of the Bonds and all other amounts due under the Financing Documents has been made, all Net Proceeds shall be paid to the Company. For purposes of this Section, property damaged or destroyed shall be considered substantially restored if it is in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Company and as (A) will not impair operating unity or productive capacity of the Project or and (B) will not change the character of the Project as suitable to such an extent that the Issuer would not be permitted to finance the Project under laws pursuant to which the Issuer was created. The action required to substantially restore the property damaged or destroyed shall be the action required for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee and shall be deposited into a separate account Project to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net Proceedssubstantially restored.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.
Appears in 1 contract
Damage and Destruction. (a) If during the Agreement Lease Term, the Project is Facilities are damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000100,000, the Authority Lessee shall promptly notify the Trustee Lessor in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss.
(b) If the Authority Lessee shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority Lessee shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project said Facilities in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Lessee and as will not impair operating unity or productive capacity the utility of the Project Facilities. The Lessee and the Lessor will cause the Net Proceeds of any insurance claim to be applied to the prompt repair, restoration, modification or the character improvement of the Project as suitable for the purposes Facilities. Any balance of the Authority pursuant to Net Proceeds remaining after such work has been completed shall be deposited into the Actapplicable subaccount of the Certificate Fund. In such case, any If the Net Proceeds of casualty insurance required under by Section 6.3 of this Agreement Lease and received with respect to any such damage or loss to the ProjectProject exceeds $100,000, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee Lessor and shall be deposited into a separate account to be established in the Construction applicable subaccount of the Project Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in 504 of the Construction Fund, and (ii) Indenture for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds amount remaining in the applicable subaccount of the Project Fund after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant applicable subaccount of the Certificate Fund which completion shall be evidenced by a certificate reasonably satisfactory to the Project Indentures as provided in Section 10.4 hereofLessor signed by an Authorized City Representative and filed with the Lessor. If such said Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority Lessee shall have provided sufficient funds to nonetheless complete the work thereof and shall, subject to Sections 3.2 and 5.4 of this Lease, pay that portion of the costs thereof in excess of the amount of said Net Proceeds.
(c) If the Authority Lessee shall determine that rebuilding, repairing, restoring or replacing the Project Facilities is not practicable or and desirable, then, in lieu of rebuilding, repairing, restoring or there are insufficient funds for said purposereplacing the Facilities, the Lessee shall either (i) promptly purchase the Facilities by paying the Option Purchase Price to the Lessor and any Net Proceeds of casualty insurance required by Section 5.4 hereof 6.3 of this Lease and received with respect to any such damage or loss to the Project Facilities shall be paid into applied to such payment, or (ii) if the Bond Funds Lessee determines (as evidenced by a certificate delivered by the Lessee to the Trustee and the Purchaser) that the portion of the Facilities that is damaged or destroyed is not essential to the use of the Facilities as a complete and operational facility, then the Lessee may retain any Net Proceeds. Any balance of the Net Proceeds remaining after paying the Option Purchase Price to the Lessor shall belong to the Lessee. The Lessee agrees that any acquisition of the Facilities or rights to their use by the Lessee shall be pursuant to and in accordance with this Lease, including payment of Rental Payments and the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c)applicable Option Purchase Price.
(d) The Sponsors Lessee shall not, by reason of the its inability of the Sponsors or the Authority to use all or any part of the Project Facilities during any period in which the Project is Facilities are damaged or destroyed, or is are being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee Lessor or the Holders Registered Owners of the Project Bonds Certificates, or any abatement or diminution of the Sponsor Payments rentals payable by the Sponsors Lessee under this Agreement Lease or of any other obligations of the Sponsors or the Authority Lessee under this Agreement Lease except as expressly provided in this Section.
Appears in 1 contract
Samples: Lease Agreement
Damage and Destruction. If the Leased Premises, or any part thereof, shall be damaged or partially or totally destroyed by fire, flood windstorm or other casualty at any time during the Lease Term, and if the Lessee shall not have exercised its option to terminate this Lease under Section 11.2(a), there shall be no abatement or diminution of the Basic Rent, Additional Payments or other amounts payable, or in any covenant, agreement or other obligation of the Lessee, under the Lease. In the event of such damage or destruction by casualty to the Leased Premises, if the Net Proceeds of insurance received by the Lessee are less than $1,000,000, they shall be paid to the Lessee and used as any other revenues of the Lessee. If the claim for loss resulting from such destruction or damage is in excess of $1,000,000, the Lessee shall promptly give written notice thereof to the Lessor, and the Lessee shall cause such Net Proceeds received in excess of $1,000,000 to be applied in one or more of the following ways:
(a) If during as to the Agreement Term, portion of the Project is Leased Premises damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000, the Authority shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, rebuild or restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of the other property) as may be desired designated by the Authority Lessee and as will shall in the judgment of the Lessee not impair operating unity or productive capacity of the Project or the character of the Project diminish its suitability as suitable Hospital Facilities, and there shall be applied for the purposes of the Authority pursuant such purpose but only to the Act. In such caseextent thereof, any Net Proceeds resulting from claims for such losses, or
(b) to payment of casualty insurance required under this Agreement and received with respect to any such damage or loss to indebtedness secured by the ProjectLeased Premises, if provided that no part of such Net Proceeds exceeds $1,000,000, may be applied for such payment unless the Lessee shall be paid furnish to the Trustee and shall be deposited into Lessor a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied certificate of a Consultant stating (i) that the property forming a part of the Leased Premises that was destroyed or damaged is not essential to its suitability as Hospital Facilities for use by a hospital institution in accordance connection with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fundits operations, and or (ii) that the Leased Premises have been restored to a condition substantially equivalent to its condition prior to such destruction or damage, or (iii) that land or improvements have been acquired, by construction or otherwise, which are suitable for the purpose operation of paying the cost of such rebuildingLeased Premises as Hospital Facilities. The Lessee shall adjust losses under the insurance policies related to the Leased Premises, repairingin conformity with this Lease, restoring or replacing such damage or lossas promptly as practicable. Any Net Proceeds remaining after completion adjustment of such rebuilding, repairing, restoring any loss or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided damage in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof an amount in excess of $1,000,000 under any policy of property insurance relating to the Leased Premises and any settlement or payment of indemnity in an amount in excess of said Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to $1,000,000 under any such damage policy shall be evidenced by a certificate, filed with the Lessor, signed by the Authorized Lessee Representative. Within ninety (90) days from the date of any such loss or loss destruction relating to the Project Leased Premises, the Authorized Lessee Representative shall be paid into advise the Bond Funds pursuant Lessor, as to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason which of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided ways specified in this SectionSection 6 will apply.
Appears in 1 contract
Damage and Destruction. (ai) If during the Agreement Term, the Project is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000, the Authority Issuer shall promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, restore or replace such damage or loss.
(bii) If the Authority Issuer shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority Issuer shall forthwith proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Issuer and as will not impair the operating unity or productive capacity of the Project or the character of the Project as suitable for the purposes of the Authority pursuant to the ActProject. In such case, any Net Proceeds of casualty insurance required under by this Agreement Indenture and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000, Project shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Project Replacement Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds amount remaining in the Project Replacement Fund after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net ProceedsDebt Service Fund.
(ciii) If the Authority Issuer shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or and desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof this Indenture and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof Debt Service Fund and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.ARTICLE
Appears in 1 contract
Damage and Destruction. (a) If during Unless the Agreement TermCompany shall have elected to exercise its option to prepay the payments required hereunder pursuant to the provisions of Section 11.1(a), if prior to payment in full of the Bonds the Project is damaged or destroyed, in whole or in part, by fire or other casualty, casualty to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is greater than $1,000,000100,000, the Authority Company shall promptly notify give written notice thereof to the Trustee. All Net Proceeds of insurance resulting from claims for such losses shall be paid to and held by the Trustee in writing as a trust account and invested in accordance with Section 702 of the Indenture, whereupon (i) the Company, or the County at the Company's direction, shall proceed promptly to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuildreplace, repair, rebuild or restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Company and as will not impair operating unity or productive capacity of the Project or change its character to such an extent that its ownership by the character of County would not be permitted under the Project as suitable for the purposes of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Project, if such Net Proceeds exceeds $1,000,000, shall be paid to the Trustee and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, Act and (ii) the Trustee shall apply so much as may be necessary of the Net Proceeds of such insurance to the payment of the costs of such replacement, repair, rebuilding or restoration, either on completion thereof or as the work progresses, as directed by the Company. Each such direction of the Company shall be accompanied by a certificate of an architect or engineer (who shall be selected by the Company and satisfactory to the Trustee) in charge of the replacement, repair, rebuilding or restoration, dated not more than thirty (30) days prior to such direction, setting forth in substance that (a) the sum then directed to be applied either has been paid by the Company, or is justly due, to contractors, subcontractors, materialmen, engineers, architects or other Persons who shall have rendered services or furnished materials or improvements for the purpose of paying replacement, repair, rebuilding or restoration therein specified; the cost names of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion Persons; a brief description of such rebuildingservices or materials or - 29 - improvements and the several amounts so paid or due to each of such Persons; and, repairinga statement that none of the costs of the services or materials or improvements described in such certificate has been or is being made the basis, restoring in any previous or replacing shall then pending direction, for payment under this Section and that the sum then directed to be deposited into applied does not exceed the Bond Funds value of the services or materials or improvements described in the certificate, and (b) except for the amount, if any, stated (pursuant to (a) preceding) in such certificate to be due for services or materials or improvements, there is not outstanding any indebtedness known to the Persons signing such certificate which is then due for labor, services, wages, material, supplies and/or equipment in connection with the replacement, repair, rebuilding or restoration which, if unpaid, might become the basis of mechanics', materialmen's, suppliers', vendors' or other similar liens (other than those being contested in good faith as permitted in Section 6.1(c)) upon the Project Indentures as provided or any part thereof. The Trustee may conclusively rely upon such direction and shall have no liability or responsibility for payments made pursuant to this Section in Section 10.4 hereofreliance thereon. If such said Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority Company shall have provided sufficient funds to nonetheless complete the work same and shall pay that portion of the costs thereof in excess of the amount of said Net Proceeds.
(c) If the Authority Proceeds or shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss advance to the Project County and the Trustee the moneys necessary to complete said work, in which case the County shall be paid into proceed so to complete the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become duework. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors Company shall not, by reason of the inability payment of such excess costs (whether by direct payment thereof or advances to the Sponsors County or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacingTrustee), be entitled to any reimbursement from the AuthorityCounty or any diminution in or postponement or abatement of the purchase price payments and other payments required to be made pursuant to Section 5.2 hereof. Any balance of said Net Proceeds remaining after payment of all the costs of such replacement, repair, rebuilding or restoration shall be paid into the Bond Fund. If payment in full of the Bonds has been made, all Net Proceeds shall be paid to the Company. If prior to payment in full of the Bonds the Project is damaged by fire or other casualty to such an extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage is not greater than $100,000, and such damage has not impaired operating units of the Project, the Trustee Company shall not be obligated to replace, repair, rebuild or restore the property damaged and may retain all Net Proceeds of insurance; provided, that if such damage impairs the operating unity of the Project, the Company, or the Holders County at the Company's request, shall promptly replace, repair, rebuild or restore the property damaged and shall apply for such purpose so much as may be necessary of said Net Proceeds, notwithstanding that the Project Bonds or claim for loss (including any abatement or diminution of deductible amount pertaining thereto) resulting from such damage is not greater than $100,000, unless the Sponsor Payments payable by the Sponsors Company shall have elected to exercise its option under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this SectionSection 11.1(a).
Appears in 1 contract
Damage and Destruction. If prior to full payment of the Bonds (a) If during or provision for payment thereof having been made in accordance with the Agreement Termprovisions of the Trust Agreement), the Project is Equipment shall be damaged or destroyedpartially or totally destroyed by fire, in whole or in partflood, by fire windstorm, or other casualtycasualty at any time during the Lease Term, there shall be no abatement or reduction in the rent payable by the Company under this Lease, and, to such the extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is not greater than $1,000,000, 25,000 the Authority shall Company (i) will promptly notify the Trustee in writing as to the nature and extent of such damage or loss and whether it is practicable and desirable to rebuild, repair, rebuild or restore or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of the property damaged or destroyed so as to place the Project in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Company and as will not impair operating unity or productive capacity of make the Project or the character of unsuitable for the Project Purposes, and (ii) will apply for such purpose so much as suitable for the purposes may be necessary of the Authority pursuant to the Act. In such case, any Net Proceeds of casualty insurance required under this Agreement and received with respect to policies resulting from claims for such losses not in excess of $25,000 as well as any additional moneys of the Company necessary therefor. All Net Proceeds of insurance resulting from claims for any such damage or loss to the Project, if such Net Proceeds exceeds not in excess of $1,000,000, 25,000 shall be paid to the Trustee and Company. If prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement), the Project Equipment shall be deposited into a separate account destroyed (in whole or in part) or damaged by fire, flood, windstorm or other casualty to be established such extent that the claim for loss resulting from such destruction or damage is in excess of $25,000 the Construction Fund Company shall promptly give written notice thereof to the Director and if such the Trustee. All Net Proceeds do not exceed of insurance policies resulting from claims for such losses in excess of $1,000,000, such Net Proceeds 25,000 shall be paid to and held by the Authority. Such Net Trustee in the Collateral Proceeds Account, whereupon, unless the Company shall be used and applied have elected to exercise its option to purchase the Project pursuant to the provisions of Section 10.2(a) of this Lease, (i) in accordance the Company will proceed to repair, rebuild or restore the property damaged or destroyed with such changes, alterations and modifications (including the disbursement requirements substitution and addition of Section 3.8 hereof if required to other property) as may be deposited in desired by the Construction FundCompany and as will not make the Project unsuitable for the Project Purposes, and (ii) the Trustee will disburse moneys in the Collateral Proceeds Account to or upon the direction of the Company for payment of the purpose of paying the cost costs of such rebuildingrepair, repairingrebuilding or restoration, restoring or replacing such damage or losseither on completion thereof or, if the Company shall so request, as the work progresses. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing disbursements shall be deposited into the Bond Funds made pursuant to the Project Indentures as provided procedures set forth in Section 10.4 hereof3.3 of this Lease for disbursement of moneys in the Project Fund, including, but not limited to, the requirement that the Company obtain the written approval of the Director with respect to each disbursement. If such Net In the event the moneys in the Collateral Proceeds Account are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to Company nonetheless will complete the work thereof in excess of the amount of said Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become duecosts thereof from its own resources. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors Company shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacingexcess costs, be entitled to any reimbursement from the Authority, the Trustee Director or the Holders any diminution in or postponement of the Project Bonds or any abatement or diminution rents payable under Section 4.3 of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this SectionLease.
Appears in 1 contract
Samples: Lease (Luiginos Inc)
Damage and Destruction. (a) If during the Agreement Term, the Project or Project Site is damaged or destroyed, in whole or in part, by fire or other casualty, to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is not greater than $1,000,00050,000, the Authority shall User will continue to pay Rent and all other payments required to be paid hereunder and the User will promptly notify repair, rebuild or restore the Trustee in writing property damaged and will apply for such purpose so much as to may be necessary of Net Proceeds of insurance resulting from claims for such losses, as well as any additional moneys of the nature and extent User necessary therefor. If the cost of such damage or loss repairs, rebuilding and whether it restoration is practicable and desirable to rebuildless than the amount of Net Proceeds of the insurance referable thereto, repair, restore or replace the User may retain the amount by which such damage or lossinsurance proceeds exceed said total cost.
(b) If the Authority shall determine Project or the Project Site is destroyed or is damaged to such extent that the claim for loss is in excess of $50,000, the User will continue to pay Rent and all other payments required to be paid hereunder and will promptly give written notice of such rebuilding, repairing, restoring or replacing is practicable damage and desirable, destruction to the Agent and the Authority Issuer. All Net Proceeds of insurance resulting from claims for such losses shall be paid to the Agent, whereupon (1) the User will proceed promptly with and complete with reasonable dispatch such rebuildingto repair, repairing, restoring rebuild or replacing of restore the property damaged or destroyed so as to place the Project in substantially the same condition as in which it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority User and as will not impair operating unity or productive capacity of the Project or its character as a "project" under the character Enabling law, and (2) the Issuer will cause the Agent to pay the costs of such repair, rebuilding or restoration, either on completion thereof, or as the work progresses, upon appropriate verification of costs. The balance, if any, of Net Proceeds shall be applied to the redemption of Bonds in accordance with the terms thereof in the same manner and order specified in Section 11.07 of the Project as suitable Indenture for moneys collected or held by the purposes Agent, and then to the payment of the Authority pursuant to the Act. In such caseContribution Amount, any Net Proceeds of casualty insurance required under this Agreement and received with respect to any such damage or loss to the Projector, if such Net Proceeds exceeds $1,000,000the Bonds and the Contribution Amount are fully paid, shall be paid to the Trustee User.
(c) In the event the User elects to repair, rebuild, or restore the Project and shall be deposited into a separate account to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds insurance are not sufficient to pay in full the costs of such replacement, repairrepairing, rebuilding or restorationand restoring the Project as provided in this Section, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to User will nonetheless complete the work thereof and will pay that portion of the costs thereof in excess of the amount of said Net Proceeds.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors User shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or not by reason of the payment of the such excess costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds Issuer or any abatement or diminution of the Sponsor Payments Rent payable by hereunder.
(d) Anything in this Section to the Sponsors under this Agreement contrary notwithstanding, if, upon such damage or of any other obligations destruction of the Sponsors Project (regardless of whether the loss resulting therefrom is greater than $50,000 or not) the Authority under this Agreement except User elects not to repair, rebuild or restore the Project and duly exercises an option to purchase the Project in accordance with Section 11.03 hereof, then neither the User nor the Issuer shall be required to repair, rebuild or restore the property damaged or destroyed, and any Net Proceeds referable to such damage or destruction shall be paid to the Agent and applied to payment of the purchase price for the Project as expressly provided in this SectionSection 11.03 hereof and the excess thereafter remaining (if any) shall be paid to the User.
Appears in 1 contract
Damage and Destruction. (a) If during prior to payment in full of the Agreement Term, Bond the Project is damaged or destroyed, in whole or in part, by fire or other casualty, casualty to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such damage or destruction is not greater than $1,000,000the amount of the deductible under the insurance policy required by Section 6.4(a), the Authority Lessee shall promptly notify be obligated to continue to pay the Trustee in writing as amounts required to be paid pursuant to Section 5.3 hereof. In the nature and extent event of such damage or destruction, the Lessee shall proceed promptly to and shall Substantially Restore the property damaged or destroyed. If prior to payment in full of the Bond the Project is destroyed or is damaged by fire or other casualty to such extent that the claim for loss (including any deductible amount pertaining thereto) resulting from such destruction or damage is in excess of the amount of the deductible under the insurance policy required by Section 6.4(a), the Lessee shall be obligated to continue to pay the amounts required to be paid pursuant to Section 5.3 hereof. In the event of such damage or destruction, the Lessee shall promptly give written notice thereof to the Trustee, and whether all Net Proceeds of insurance resulting from claims for such losses shall be paid to and held in the Bond Fund by the Trustee and shall be invested in securities of the type referred to in Section 4.11 hereof. if within thirty (30) days after such damage or destruction the Lessee exercises its option to purchase the Project pursuant to Section 11.1 of this Agreement, the Trustee shall apply the Net Proceeds to the purchase price payable by the Lessee at the closing of the Lessee's purchase of the Project. Otherwise, the Lessee shall proceed promptly to, and shall, substantially restore the property damaged or destroyed, and the Trustee shall apply the Net Proceeds of insurance received by it is practicable and desirable to rebuildpayment of the costs for such replacement, repair, restore rebuilding or replace such damage or loss.
(b) If the Authority shall determine that such rebuilding, repairing, restoring or replacing is practicable and desirable, and the Authority shall proceed promptly with and complete with reasonable dispatch such rebuilding, repairing, restoring or replacing of restoration as may be required for the property damaged or destroyed so to be Substantially Restored, either on completion thereof or as the work progresses, as directed by the Lessee and the Issuer. Each such direction of the Lessee and the Issuer shall, be accompanied by a requisition, in form acceptable to the Trustee, signed by the Authorized Lessee Representative and the Authorized Issuer Representative and approved by the Bondholder, certifying, as to place the Project replacement, repair, rebuilding or restoration and as to the Net Proceeds of insurance held by the Trustee, to the same effect as the certificate of the Authorized Lessee Representative and the Authorized Issuer Representative required for disbursements from the Construction Fund is required to certify as to the Construction Fund. The Trustee may conclusively rely upon such direction of the Lessee and the Issuer and shall have no liability or responsibility for payments made pursuant to this Section in reliance thereon. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Lessee shall nonetheless complete the work thereof and shall pay that portion of the cost thereof in excess of the amount of Net Proceeds. The Lessee shall not, by reason of the payment of such excess costs, be entitled to any reimbursement from the Issuer or the Trustee or any abatement, dimunition or postponement of the amounts payable under Section 5.3 hereof. Any balance of Net Proceeds remaining after payment of all costs of replacement, repair, rebuilding or restoration required to Substantially Restore the property damaged or destroyed shall be paid to the Trustee and applied to prepay the principal balance on the Bond by reducing the principal portion of payments thereon in the inverse order of their due dates. If payment in full of the Bond has been made, all Net Proceeds shall be paid to the Lessee. For purposes of this Lease Agreement, property damaged or destroyed shall be considered "Substantially Restored" if, within four (4) consecutive months after the date of damage or destruction, it is in substantially the same condition as existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Authority Lessee, subject to approval by the Trustee, and as (A) will not impair operating unity or productive capacity of the Project or and (B) will not change the character of the Project as suitable for to such an extent that the purposes of Issuer would not be permitted to own, finance or lease the Authority pursuant to Project under the Act. In such case, any Net Proceeds of casualty insurance The action required under this Agreement and received with respect to any such damage "Substantially Restore" the property damaged or loss to the Project, if such Net Proceeds exceeds $1,000,000, destroyed shall be paid to the Trustee and shall be deposited into a separate account action required for the Project to be established in the Construction Fund and if such Net Proceeds do not exceed $1,000,000, such Net Proceeds shall be paid to the Authority. Such Net Proceeds shall be used and applied (i) in accordance with the disbursement requirements of Section 3.8 hereof if required to be deposited in the Construction Fund, and (ii) for the purpose of paying the cost of such rebuilding, repairing, restoring or replacing such damage or loss. Any Net Proceeds remaining after completion of such rebuilding, repairing, restoring or replacing shall be deposited into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof. If such Net Proceeds are not sufficient to pay in full the costs of such replacement, repair, rebuilding or restoration, the Authority may elect to rebuild, repair, restore or replace the Project only if the Authority shall have provided sufficient funds to nonetheless complete the work thereof in excess of the amount of said Net ProceedsSubstantially Restored.
(c) If the Authority shall determine that rebuilding, repairing, restoring or replacing the Project is not practicable or desirable, or there are insufficient funds for said purpose, any Net Proceeds of casualty insurance required by Section 5.4 hereof and received with respect to any such damage or loss to the Project shall be paid into the Bond Funds pursuant to the Project Indentures as provided in Section 10.4 hereof and shall be used to redeem Project Bonds on the earliest possible redemption date or to pay the principal of any Project Bonds as the same become due. The Authority agrees to be reasonable in exercising its judgment pursuant to this subsection (c).
(d) The Sponsors shall not, by reason of the inability of the Sponsors or the Authority to use all or any part of the Project during any period in which the Project is damaged or destroyed, or is being repaired, rebuilt, restored or replaced, or by reason of the payment of the costs of such rebuilding, repairing, restoring or replacing, be entitled to any reimbursement from the Authority, the Trustee or the Holders of the Project Bonds or any abatement or diminution of the Sponsor Payments payable by the Sponsors under this Agreement or of any other obligations of the Sponsors or the Authority under this Agreement except as expressly provided in this Section.
Appears in 1 contract