Common use of Damage or Destruction Due to Cause Not Required to be Covered by Insurance Clause in Contracts

Damage or Destruction Due to Cause Not Required to be Covered by Insurance. If either Project is completely destroyed or suffers Substantial Damage (as hereinafter defined) caused by a casualty for which Developer is not required to (and has not) insured against, or if insurance proceeds are insufficient to rebuild then Developer shall not be required to repair, replace, or restore such improvements and may elect not to do so by providing Authority with written notice of election not to repair, replace, or restore within ninety (90) days after such substantial damage or destruction. In such event, the Ground Lease shall be automatically terminated and Developer shall immediately tender possession of the Site to Authority. As used in this Section 306.4, “Substantial Damage” caused by a casualty not required to be (and not) covered by insurance shall mean damage or destruction which is fifteen percent (15%) or more of the replacement cost of the improvements comprising the applicable Project. In the event Developer does not timely elect not to repair, replace, or restore the applicable Project as set forth in the first sentence of this Section 306.4, Developer shall be conclusively deemed to have waived its right not to repair, replace, or restore the applicable Project and thereafter Developer shall promptly

Damage or Destruction Due to Cause Not Required to be Covered by Insurance. If either Project Phase II is completely destroyed or suffers Substantial Damage (as hereinafter defined) caused by a casualty for which Developer is not required to (and has not) insured against, or if insurance proceeds are insufficient to rebuild then Developer shall not be required to repair, replace, or restore such improvements and may elect not to do so by providing Authority with written notice of election not to repair, replace, or restore within ninety (90) days after such substantial damage or destruction. In such event, the Ground Lease shall be automatically terminated and Developer shall immediately tender possession of the Site to Authority. As used in this Section 306.43.6.5, “Substantial Damage” caused by a casualty not required to be (and not) covered by insurance shall mean damage or destruction which is fifteen percent (15%) or more of the replacement cost of the improvements comprising the applicable ProjectPhase II. In the event Developer does not timely elect not to repair, replace, or restore the applicable Project Phase II as set forth in the first sentence of this Section 306.43.6.5, Developer shall be conclusively deemed to have waived its right not to repair, replace, or restore the applicable Project Phase II and thereafter Developer shall promptlypromptly commence and complete the repair, replacement, or restoration of the damaged or destroyed Phase II in accordance with Section 3.6.4 above.