Common use of Proceeds of Destruction, Taking and Collateral Dispositions Clause in Contracts

Proceeds of Destruction, Taking and Collateral Dispositions. (a) So long as no Event of Default shall have occurred and be continuing, and to the extent the applicable Grantor is permitted by the Loan Documents to reinvest any Net Proceeds as contemplated herein, in the event there shall be any Net Proceeds in respect of any Taking or Destruction of Collateral or Net Proceeds from any sale or disposition of Collateral, the applicable Grantor shall have the right, at such Grantor’s option, to apply such Net Proceeds within two hundred seventy (270) days after the receipt of such Net Proceeds (or, in the case of such disposition, to apply such Net Proceeds within two hundred seventy (270) days from the date of such disposition) to reinvest in new or existing properties or assets having a fair market value at least equal to the amount of such net insurance proceeds or net awards or net cash proceeds, as the case may be, in accordance with the applicable provisions of this Agreement. In the event such Grantor elects to reinvest such Net Proceeds, such Grantor shall deliver to the Collateral Agent (A) a written notice of such election and (B) an Officers’ Certificate stating that (1) the applicable Net Proceeds shall be utilized to reinvest in Collateral in the manner and to the extent contemplated by the applicable provisions of the Loan Documents, and (2) no Event of Default has occurred and is continuing (the items described in clauses (A) and (B) of this sentence, collectively, the “Investment Election Notice”). In the event such Net Proceeds shall be in an amount less than (i) $500,000 or (ii) when taken together with all other awards or proceeds in any fiscal year, less than $1,000,000, upon receipt of an Investment Election Notice, the Collateral Agent shall release such Net Proceeds to such Grantor in accordance with the provisions of subsection 6.01(b) hereof.

Proceeds of Destruction, Taking and Collateral Dispositions. (a) So long as no Event of Default shall have occurred and be continuing, and to the extent the applicable Grantor is permitted by the Loan Documents to reinvest any Net Proceeds as contemplated herein, in the event there shall be any Net Proceeds net award in respect of any Taking or net insurance proceeds in respect of any Destruction of Collateral or Net Proceeds net cash proceeds from any sale or disposition of CollateralCollateral of the type contemplated in subsection 8.5(h), the applicable Grantor Credit Party shall have the right, at such Grantor’s Credit Party's option, to apply such Net Proceeds net award or net insurance proceeds within two hundred seventy (270) 270 days after from the receipt date of such Net Proceeds the applicable Destruction or Taking (or, in the case of such disposition, to apply such Net Proceeds net cash proceeds within two hundred seventy (270) 270 days from the date of such disposition) to reinvest in new or existing properties or assets owned (or to be owned) by Borrower or a wholly owned Subsidiary of Borrower having a fair market value at least equal to the amount of such net insurance proceeds or net awards or net cash proceeds, as the case may be, in accordance with the applicable provisions of this Agreement. In the event such Grantor Credit Party elects so to reinvest such Net Proceedsnet insurance proceeds or net awards or net cash proceeds, as the case may be, such Grantor Credit Party shall deliver to the Collateral Administrative Agent (A) a written notice of such election and (B) an Officers’ ' Certificate stating that (1) the applicable Net Proceeds net insurance proceeds or net awards, as the case may be, shall be utilized so to reinvest in Collateral in the manner and to the extent contemplated by the applicable provisions proviso set forth in clause (b) of the Loan Documentsdefinition of Net Proceeds, or the net cash proceeds shall be utilized so to reinvest in Collateral in the manner contemplated by the proviso set forth in subsection 8.5(h), as the case may be, and (2) no Event of Default has occurred and is continuing (the items described in clauses (A1) and (B2) of this sentence, collectively, the “"Investment Election Notice”"). In the event such Net Proceeds shall be in an amount less than (i) $500,000 or (ii) when taken together with all other awards or proceeds in any fiscal year, less than $1,000,000, upon Upon receipt of an Investment Election Notice, the Collateral Administrative Agent shall release such Net Proceeds net insurance pro- ceeds or net awards or net cash proceeds to such Grantor Credit Party in accordance with the provisions of subsection 6.01(b12.1(b) hereof.