Common use of Destruction of Facility Clause in Contracts

Destruction of Facility. In the event of total or partial destruction of the Facility during the term of this Lease: (a) If such total or partial destruction occurs as a result of any act or omission on the part of the State or the Educational Institution or any of their agents or employees (whether negligent or otherwise), the Educational Institution in the case of its act or omission and the State in the case of its act or omission shall, at its sole expense (from insurance proceeds or other sources, including payment by the Educational Institution), replace or repair the Facility to the reasonable satisfaction of the Authority, and this Lease shall remain in effect and no reduction or abatement of the Rental shall be permitted the Educational Institution or the State acting on behalf of the Educational Institution, and the Educational Institution or the State shall be entitled to receive all insurance payments; [provided, however, if at the time the insurance proceeds become available, an Event of Default (as defined in the Reimbursement Agreement) has occurred and is continuing under the Reimbursement Agreement, the Agent may direct the use of insurance proceeds to the payment of outstanding Obligations (as defined in the Reimbursement Agreement) related to the Facility and the State or the Educational Institution shall be relieved of its responsibility to replace or repair the Facility]. (b) If the total or partial destruction of the Facility occurs for causes not described in clause (a) of this Section 4.4, and the Authority demonstrates within 180 days from the occurrence of such partial or total destruction to the reasonable satisfaction of the Educational Institution [and the Agent] that it has sufficient funds (from insurance proceeds or other sources including payments by the Educational Institution) available to repair or replace the Facility within the period for which the rental value insurance described in Section 4.3(c) is actually then in force, the State or Educational Institution may repair or replace the Facility if the estimated "true rental" after such repair or replacement determined in the same manner that "true rental" was determined in the original instance shall not be less than the Rental prior to such destruction and if it is estimated that through the insurance described in Section 4.3(c), together with any other funds legally available therefor, [including, without limitation, amounts available to be drawn under or derived from the Letter of Credit,] there will be sufficient moneys available to the Authority during any period that the Rental may be suspended or reduced because of such destruction to fully offset the amount of the loss of Rental and to pay the principal and interest requirements on outstanding Authority Debt and any other obligations of the Authority secured by the Rental coming due. If the Facility is to be repaired or replaced the Authority shall pay to the State or the Educational Institution the cost of repair or replacement of the Facility in the amount incurred by the State or the Educational Institution for the repair or replacement of the Facility, and this Lease shall remain in effect, but the Rental shall be equitably adjusted by the mutual agreement of the parties according to the extent and time of the loss of the use of the Facility by the Educational Institution. [Notwithstanding the foregoing, the Authority shall not elect to repair or replace the Facility (i) if Authority Debt secured by the Letter of Credit are outstanding with respect to the Facility and if based upon an Architect's certificate, the Facility will not become tenantable on or prior to the Expiration Date (as defined in the Letter of Credit) unless the Agent is satisfied that the Authority nonetheless reasonably expects to have funds available to reimburse the Agent on or prior to the Expiration Date all as further provided in the Reimbursement Agreement or (ii) if an Event of Default has occurred and is continuing under the Reimbursement Agreement.] (c) If the Authority does not or cannot so demonstrate availability of funds to repair or replace the Facility, then this Lease may be terminated by either the State, the Educational Institution or the Authority upon thirty days' written notice to the other parties, and all Rental of the State on behalf of the Educational Institution hereunder shall cease from the date of such termination, in which event all insurance proceeds shall be applied as provided in the Resolution. If the Facility is partially destroyed, but the remaining Facility is usable by the State or the Educational Institution, then the Rental shall be reduced, if necessary, to reflect the "true rental" of the remaining Facility, the annual amounts of such "true rental" of the remaining Facility to be determined in the same manner that "true rental" was determined in the original instance. (d) Insurance proceeds shall be paid to the Authority and used as provided in Section 4.4(b), for the repair or replacement of the Facility by the State or the Educational Institution. If the Facility is not repaired or replaced, or if the cost of repair or replacement does not exhaust the amount of insurance proceeds received, the balance of the proceeds shall be applied as provided in the Resolution. In the event surplus funds remain after application of insurance proceeds as provided in the Resolution, then such surplus shall be paid to the State to be credited to its General Fund. (e) If the Facility is to be replaced by new facilities which are substantially dissimilar in construction or use from the original facilities, then the Facility shall not be replaced unless the plans and specifications are approved by the Authority, the State [and the Agent] (State approval shall be evidenced by the approval of the State Administrative Board and as provided in an appropriations act).

Destruction of Facility. In the event of total or partial destruction of the Facility during the term of this LeaseAgreement: (a) If such the total or partial destruction occurs as a result of any act or omission on the part of the State or the Educational Institution or any of their agents or employees (whether negligent or otherwise), the Educational Institution in the case of its act or omission and the State in the case of its act or omission shall, at its sole expense (from insurance proceeds or other sources, including payment by the Educational Institution), replace or repair the Facility to the state of construction immediately prior to the destruction to the reasonable satisfaction of the Authority, and this Lease Agreement shall remain in effect and no reduction the State or abatement of the Rental shall be permitted the Educational Institution or the State acting on behalf of the Educational Institution, and the Educational Institution or the State shall be entitled to receive all insurance payments; [provided, however, if there are at the time the insurance proceeds become available, an Event of Default available outstanding Obligations (as defined in the Reimbursement Agreement) related to the Facility or if an Event of Default has occurred and is continuing under the Reimbursement Agreement, the Agent may direct the use of insurance proceeds to the payment of outstanding those Obligations (as defined in the Reimbursement Agreement) related to the Facility and the State or the Educational Institution shall be relieved of its responsibility to replace or repair the Facility]. (b) If the total or partial destruction of the Facility occurs for causes not described in clause (a) of this Section 4.414(a), and the Authority demonstrates within 180 days from the occurrence of such partial or total destruction to the reasonable satisfaction of the State and the Educational Institution [and the Agent] that it has sufficient funds (from insurance proceeds or other sources including payments by the Educational Institutionadditional issuances of Notes) available to repair or replace the Facility within to the period for state of construction immediately prior to the destruction, and, unless otherwise consented to by the Agent, that there are other funds legally available and deposited in the Note Fund which will be sufficient to pay any Obligations related to the rental value insurance described in Section 4.3(c) is actually then in forceFacility which are outstanding at the time of the demonstration of sufficient funds, the State or the Educational Institution may repair or replace the Facility if the estimated "“true rental" ” after such repair or replacement determined in the same manner that "true rental" was determined in the original instance shall not be less than the Rental estimated “true rental” prior to such destruction and if it is estimated that through the insurance described in Section 4.3(c), together with any other funds legally available therefor, [including, without limitation, amounts available to be drawn under or derived from the Letter of Credit,] there will be sufficient moneys available to the Authority during any period that the Rental may be suspended or reduced because of such destruction to fully offset the amount of the loss of Rental and to pay the principal and interest requirements on outstanding Authority Debt and any other obligations of the Authority secured by the Rental coming duedestruction. If the Facility is to be repaired or replaced replaced, the Authority shall pay to the State or the Educational Institution the cost of repair or replacement of the Facility in the amount incurred by the State or the Educational Institution for the repair or replacement of the Facility, Facility and this Lease Agreement shall remain in effect; provided, but however, under no circumstances will the Rental shall be equitably adjusted by amount paid to the mutual agreement State or the Educational Institution for repair or replacement exceed the amount of the parties according to the extent and time insurance proceeds together with additional issuances of the loss of the use of the Facility by the Educational InstitutionNotes, if any. [Notwithstanding the foregoing, the Authority shall not elect to repair or replace the Facility (i) if Authority Debt secured by the Letter of Credit Notes are outstanding with respect to the Facility and if based upon an Architect's ’s certificate, the Facility will not become tenantable on or prior to the Expiration Date (as defined in the Letter of Credit) unless the Agent is satisfied that the Authority nonetheless reasonably expects to have funds available to reimburse the Agent Bank on or prior to the Expiration Date all as further provided in the Reimbursement Agreement or (ii) if an Event of Default has occurred and is continuing under the Reimbursement Agreement.] (c) If the Authority does not or cannot so demonstrate availability of funds to repair or replace the FacilityFacility and meet the prior obligation set forth in Section 14(b), then this Lease Agreement may be terminated by either the State, the Educational Institution or the Authority upon thirty days' days written notice to the other parties, and all Rental of the State on behalf of the Educational Institution hereunder shall cease from the date of such termination, in which event all insurance proceeds shall be applied as provided in the Resolution. If the Facility is partially destroyed, but the remaining Facility is usable by the State or the Educational Institution, then the Rental shall be reduced, if necessary, to reflect the "true rental" of the remaining Facility, the annual amounts of such "true rental" of the remaining Facility to be determined in the same manner that "true rental" was determined in the original instanceTrust Indenture. (d) Insurance proceeds shall be paid to the Authority and used as provided in Section 4.4(b14(b), are to be used for the repair or replacement of the Facility by the State or the Educational Institution. If the Facility is not repaired or replaced, or if the cost of repair or replacement does not exhaust the amount of insurance proceeds received, the balance of the proceeds shall be applied as provided in the ResolutionTrust Indenture. In the event If surplus funds remain after application of insurance proceeds as provided in the ResolutionTrust Indenture, then such that surplus shall be paid to the State to be credited to its General FundFund or otherwise as agreed to by the State and the Educational Institution. (e) If the Facility is to be replaced by new facilities which are substantially dissimilar in construction or use from the original facilities, then the Facility shall not be replaced unless the plans and specifications are approved by the Authority, the State [Agent and the Agent] State. (State approval shall be evidenced by the approval of the State Administrative Board and as provided in by an appropriations act)act of the Legislature.