Common use of Insurance Funds Clause in Contracts

Insurance Funds. In the event of loss under any policy or policies of insurance described in Article VIII hereof and if Tenant is not in default under this lease, the net amount of insurance proceeds so collected by Landlord after payment of expenses incurred in such collection shall be disbursed to Tenant in the same manner and following the customs ordinarily employed by a mortgage bank making construction loans and be applied toward the expense of repairing or rebuilding the buildings or improvements which have been damaged or destroyed; provided, however, that it shall first appear to the satisfaction of Landlord that the amount of insurance money available, plus any additional funds deposited by Tenant, shall at all times be sufficient to pay for the completion of said repairs or rebuilding. Upon the completion of said repairs or rebuilding, free from all liens of mechanics and others, any surplus funds shall be paid to Tenant. All payouts by the Landlord as hereinabove required, shall be made after making provision for reasonable holdbacks and upon receipt of a certificate of the architect or engineer in charge of the repairs and rebuilding stating: (a) that the sum requested is due to the contractors, materialmen, laborers, engineers, architects, or other persons (whose names and addresses shall be stated) who have furnished services or materials for the repairs and restoration, or is required to reimburse Tenant for expenditures made by Tenant in connection with the repairs and restoration; (b) that the sum requested when added to all sums previously paid out under this Article for the repairs and restoration does not exceed the value of the repairs and restoration done to the date of such certificate; (c) the progress of the repairs and restoration; (d) that the repairs and restoration have been done pursuant to all plans and specifications required by Section 9.2 hereof; and (e) that in the opinion of the architect or engineer, the remaining amount of the sum on deposit will be sufficient upon the completion of the repairs and restoration to pay for the same in full. Tenant shall furnish the Landlord at the time of any such payment with such statements and waivers of lien as may be required under the mechanic's lien law of Illinois and an official search, or other evidence satisfactory to the Landlord, that there has not been filed with respect to the demised premises any mechanic's or other lien which has not been discharged of record, in respect of any work, labor, services or materials performed, furnished or supplied, in connection with the repair and restoration, and that all of said materials have been purchased free and clear of any security agreement or title retention agreement. The Landlord shall not be required to pay out any sum when the demised premises shall be encumbered with any such lien or agreement, or when the Tenant is in default under any covenant or obligation set forth herein.

Insurance Funds. In the event of loss under any policy or policies of insurance described in Article VIII hereof and if Tenant is not in default under this lease, the net amount of insurance proceeds so collected by Landlord after payment of expenses incurred in such collection shall be disbursed to Tenant in the same manner and following the customs ordinarily employed by a mortgage bank making construction loans and be applied toward the expense of repairing or rebuilding the buildings or improvements which have been damaged or destroyed; provided, however, that it shall first appear to the satisfaction of Landlord that the amount of insurance money available, plus any additional funds deposited by Tenant, shall at all times be sufficient to pay for the completion of said repairs or rebuilding. Upon the completion of said repairs or rebuilding, free from all liens of mechanics and others, any surplus funds shall be paid to Tenant. All payouts by the Landlord as hereinabove required, shall be made after making provision for reasonable holdbacks and upon receipt of a certificate of the architect or engineer in charge of the repairs and rebuilding stating: (a) that the sum requested is due to the contractors, materialmen, laborers, engineers, architects, or other persons (whose names and addresses shall be stated) who have furnished services or materials for the repairs and end restoration, or is required to reimburse Tenant for expenditures made by Tenant in connection with the repairs and restoration; (b) that the sum requested when added to all sums previously paid out under this Article for the repairs and restoration does not exceed the value of the repairs and restoration done to the date of such certificate; (c) the progress of the repairs and restoration; (d) that That the repairs and restoration have been done pursuant to all plans and specifications required by Section 9.2 hereof; and (e) that in the opinion of the architect or engineer, the remaining amount of the sum on deposit will be sufficient upon the completion of the repairs and restoration to pay for the same in full. Tenant shall furnish the Landlord at the time of any such payment with such statements and waivers of lien as may be required under the mechanic's lien law of Illinois and an official search, or other evidence satisfactory to the Landlord, that there has not been filed with respect to the demised premises any mechanic's or other lien which has not been discharged of record, in respect of any work, labor, services or materials performed, furnished or supplied, in connection with the repair and restoration, and that all of said materials have been purchased free and clear of any security agreement or of title retention agreement. The Landlord shall not be required to pay out any sum when the demised premises shall be encumbered with any such lien or agreement, or when the Tenant is in default under any covenant or obligation set forth herein.