Common use of Partial Damage or Destruction of Leased Premises Clause in Contracts

Partial Damage or Destruction of Leased Premises. If the buildings or other improvements on the Leased Premises should be damaged by fire, tornado or other casualty through no fault of Lessee and such damage affects the Leased Premises but not to such an extent that the rebuilding or repair cannot reasonably be completed within sixty (60) days from the date of written notification by Lessee to City of the happening of the damage, City shall, but shall be under no obligation beyond utilizing the proceeds of insurance coverage upon the structure of the Leased Premises to, at its sole cost, proceed forthwith and use reasonable diligence to rebuild or repair such buildings and other improvements on the Leased Premises to substantially the condition they were in prior to such damage. To pay for such work, City shall be entitled to use proceeds from any fire and extended coverage insurance policy of Lessee covering the Leased Premises, provided that City shall not be entitled to use any proceeds that are not payable for the replacement of or repair of any damages to the structure of the Leased Premises, such as proceeds payable for loss of personal (movable) property or business interruption. To the extent required by the Senior Mortgage, any casualty and hazard insurance proceeds in respect of the Leased Premises shall be paid to the Mortgagee thereunder. In no event shall City receive any such insurance proceeds until the Leased Premises are restored pursuant to the Senior Mortgage or the Senior Mortgage is paid in full. Lessee’s obligation to restore the Leased Premises following any damage or destruction shall be limited to the extent that casualty and hazard insurance proceeds are made available to Lessee. Other than City’s obligation to rebuild or repair such buildings and improvements utilizing proceeds of insurance maintained by City and any proceeds of any insurance maintained by Lessee, if any, City shall have the option, at its sole cost and expense, to rebuild or repair such buildings and other improvements on the Leased Premises to substantially the condition they were in prior to such damage.

Partial Damage or Destruction of Leased Premises. If the buildings or other improvements on the Leased Premises should be damaged by fire, tornado or other casualty through no fault of Lessee Tenant and such damage affects the Leased Premises but not to such an extent that the rebuilding or repair cannot reasonably be completed within sixty (60) days from the date of written notification by Lessee Tenant to City of the happening of the damage, City shall, but shall be under no obligation beyond utilizing the proceeds of insurance coverage upon the structure of the Leased Premises to, at its sole cost, proceed forthwith and use reasonable diligence to rebuild or repair such buildings and other improvements on the Leased Premises to substantially the condition they were in prior to such damage. To pay for such work, City shall be entitled to use proceeds from any fire and extended coverage insurance policy of Lessee Tenant covering the Leased Premises, provided that City shall not be entitled to use any proceeds that are not payable for the replacement of or repair of any damages to the structure of the Leased Premises, such as proceeds payable for loss of personal (movable) property or business interruption. To the extent required by the Senior Mortgage, any casualty and hazard insurance proceeds in respect of the Leased Premises shall be paid to the Mortgagee thereunder. In no event shall City receive any such insurance proceeds until the Leased Premises are restored pursuant to the Senior Mortgage or the Senior Mortgage is paid in full. Lessee’s obligation to restore the Leased Premises following any damage or destruction shall be limited to the extent that casualty and hazard insurance proceeds are made available to Lessee. Other than City’s =s obligation to rebuild or repair such buildings and improvements utilizing proceeds of insurance maintained by City and any proceeds of any insurance maintained by LesseeTenant, if any, City shall have the option, at its sole cost and expense, option to rebuild or repair such buildings and other improvements on the Leased Premises to substantially the condition they were in prior to such damage.