Common use of Proceeds of Insurance Clause in Contracts

Proceeds of Insurance. Payments under all policies required hereby in respect of loss or damage to the Vessel, which payments are in excess of $5,000,000 or which are made as the result of an event constituting an Event of Loss, shall be made to the Indenture Trustee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have occurred and be continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in the Indenture and thereafter (i) proceeds of insurance maintained under this Section 10 received as the result of the occurrence of an Event of Loss shall be applied as set forth in Section 11, and (ii) the proceeds of any such insurance for damage to the Vessel not constituting an Event of Loss shall be applied in payment for the repair of such damage to the extent required to maintain the Vessel in accordance with Section 5, if such repair shall not have already been paid for by the Charterer, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and any balance remaining after compliance with said Section 5 shall be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but shall be paid to and held by the Indenture Trustee as security for the obligations of the Charterer under this Charter and the obligations of the Owner Trustee under the Indenture and, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount shall be paid to the Charterer or the Owner Trustee, as the case may be.

Proceeds of Insurance. Payments under all policies required hereby in respect of loss or damage to the Vessel, which payments are in excess of $5,000,000 or which are made (a) So long as the result of an event constituting an Event of Loss, shall be made to the Indenture Trustee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have --------------------- has occurred and be is continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, all proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in required hereby which are received by the Indenture and thereafter (i) proceeds of insurance maintained under this Section 10 received Collateral Agent or the Company as the result of the occurrence of an Event of Loss with respect to any Collateral shall be applied as set forth in immediately paid over to or retained by the Company, provided that the Company has fully complied with the terms of Section 114.04 and has made all payments then due and required to be made by the Company under the Indenture, and otherwise shall be paid over to or retained by the Collateral Agent to be held as Temporary Cash Collateral or if the Company so notifies the Collateral Agent at any time, Cash Collateral hereunder. (iib) the So long as no Event of Default has occurred and is continuing, all proceeds of insurance required hereby which are received by the Collateral Agent or the Company as the result of any such insurance for property damage or loss to the Vessel any Collateral not constituting an Event of Loss shall will be immediately applied in payment for repair (whether such payment be for repair or partial repair already made or for advance payments or deposits requested by the repair of person making such damage to the extent required to maintain the Vessel repair) or replacement in accordance with the terms of Section 54.03, if such repair shall not have already been paid for by the ChartererCompany, or, if already paid for by the ChartererCompany, will be immediately applied to reimburse the Charterer Company for its payment of such repair payment, and any balance remaining after compliance with said Section 5 such application or payment shall be immediately paid over to or retained by the Company. (c) All proceeds of insurance required hereby which are received by the Collateral Agent or the Company as a result of any property damage or loss to Spare Parts or other Property not constituting Pledged Spare Parts or other Collateral shall be immediately paid over to or retained by the Company. (d) All proceeds of insurance received by the Collateral Agent hereunder and not then required to be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but Company shall be paid to and held by the Indenture Trustee Collateral Agent as security for Temporary Cash Collateral or, if the obligations of Company so notifies the Charterer under this Charter and the obligations of the Owner Trustee under the Indenture andCollateral Agent at any time, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount shall be paid to the Charterer or the Owner Trustee, as the case may beCash Collateral hereunder.

Proceeds of Insurance. Payments Except as provided in Section 4.1 hereof, and as provided in the following sentence, so long as no Default has occurred and is continuing, Grantor shall be permitted to make proof of loss, to adjust and compromise any claim under all policies required hereby insurance policies, to appear in respect and prosecute any action arising from such insurance policies, and to collect and receive insurance proceeds and to use such proceeds as Grantor determines, provided that said proceeds shall be used for the repair, restoration or replacement of loss or damage the relevant Aircraft to the Vesselextent the same is included by AirNet in the calculation of the Borrowing Base. Notwithstanding the foregoing, which payments are if Grantor receives proceeds of insurance in excess of $5,000,000 or which are made 250,000 as the a result of an event constituting any loss or damage which does not constitute an Event of Loss, the Grantor shall give the Agent prompt written notice thereof (and in any event within three Business Day after such occurrence) and the Grantor shall, on the next Business Day following the receipt of insurance proceeds with respect to such occurrence, pay to the Agent, for the benefit of the Lenders, the amount of such insurance proceeds, such proceeds to be applied to the Revolving Loans, if any, then outstanding under the Credit Agreement (and such amounts shall be made available for reborrowing on the terms provided in the Credit Agreement). Notwithstanding anything contained in this Agreement to the Indenture Trusteecontrary, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of if a Default or Event of Default shall have has occurred and be is continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in the Indenture and thereafter (i) proceeds Agent shall be entitled to make proof of loss, to adjust and compromise any claim under insurance maintained under policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom the Agent’s reasonable expenses incurred in the collection of such proceeds; provided, however, that nothing contained in this Section 10 received as the result of the occurrence of an Event of Loss 5.3 shall be applied as set forth in Section 11require Agent to incur any expense or take any action hereunder, and (ii) Agent, at its option, shall have the right to (x) have the balance of such insurance proceeds used for the purpose of reimbursing Grantor for the cost of restoration, repair or replacement of the Collateral, or (y) apply the balance of such proceeds to the payment of the Obligations, whether or not then due, in such order of application as determined by the Agent. Grantor hereby assigns to the Agent all rights of Grantor in and to any insurance proceeds paid or to be paid as a result of any such insurance loss or damage for damage to the Vessel not constituting an Event of Loss shall be applied in payment for the repair of such damage to the extent required to maintain the Vessel in accordance with Section 5, if such repair shall not have already been paid for by the Charterer, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and any balance remaining after compliance with said Section 5 shall be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but shall be paid to and held by the Indenture Trustee as security for the obligations purposes of the Charterer under this Charter and the obligations of the Owner Trustee under the Indenture and, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount shall be paid to the Charterer or the Owner Trustee, as the case may beforegoing.

Proceeds of Insurance. Payments All amounts recoverable under all policies required any policy of casualty insurance are hereby in respect of loss or damage assigned to the VesselCollateral Agent, which payments are in excess of $5,000,000 or which are made as the result of an event constituting an Event of Loss, shall be made SUBJECT to the Indenture Trustee, prior rights of the Owner Trustee Collateral Agent under the First Mortgage. In the event the Mortgagor or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have occurred and be continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, Collateral Agent receives any proceeds of insurance maintained pursuant to this Section 10 from any loss covered by any insurance policies on the Mortgaged Property, the same shall be immediately paid over to the Collateral Agent under the First Mortgage, for application as therein provided; PROVIDED, HOWEVER, that if the First Mortgage has at the time been terminated and applied as set forth discharged, THEN in the Indenture event of a loss, the Collateral Agent is authorized and thereafter empowered, at its option, to adjust or compromise any loss covered by any insurance policies on the Mortgaged Property, to collect and receive the proceeds therefrom and, after deducting from such proceeds any expenses incurred by it in the collection or handling thereof, to use and apply the net proceeds or any part thereof in any one or more of the following ways: (i) proceeds of insurance maintained under this Section 10 received as the result application of the occurrence net proceeds to the ratable payment or prepayment of an Event of Loss shall be applied as set forth in Section 11, and the Secured Obligations; (ii) use the proceeds same or any part thereof to fulfill any of the covenants contained herein as the Collateral Agent may determine; (iii) use the same or any such insurance for damage part thereof to replace and restore the Mortgaged Property to a condition satisfactory to the Vessel not constituting an Event of Loss shall be applied in payment for Collateral Agent; or (iv) release the repair of such damage same or any part thereof to the extent required Mortgagor to maintain cover the Vessel in accordance with Section 5, if such cost of repair shall not have already been paid for by the Charterer, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and any balance remaining after compliance with said Section 5 shall be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but shall be paid to and held by the Indenture Trustee as security for the obligations restoration of the Charterer under this Charter and the obligations of the Owner Trustee under the Indenture and, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount shall be paid to the Charterer or the Owner Trustee, as the case may beImprovements.

Proceeds of Insurance. Payments under all policies required hereby in respect of loss or damage Subject to the Vesselprovisions of Section 8.08 hereof, if during the Term the Building or any part thereof shall be damaged or destroyed by any hazard against which payments are insurance is in excess effect pursuant to the provisions of $5,000,000 this Lease, then all property insurance money paid on account of such damage or which are made as destruction, less the result actual costs, fees and expenses, if any, incurred in connection with the adjustment of an event constituting an Event of Lossthe loss, shall be made applied to the Indenture Trusteepayment of the cost of the restoration, repair, replacement, rebuilding or alteration to and of the Building, including the cost of temporary repairs or for the protection of property pending the completion of permanent restoration, repairs, replacements, rebuilding or alterations are hereinafter collectively referred to as the ("Restoration"), and, if required by any Mortgagee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have occurred and be continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, Landlord's insurance proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in the Indenture and thereafter (i) proceeds of insurance maintained under this Section 10 received as the result of the occurrence of an Event of Loss shall be applied as set forth in Section 11, and (ii) the proceeds of any such insurance for damage to the Vessel not constituting an Event of Loss shall be applied in payment for the repair of such damage to the extent required to maintain the Vessel in accordance with Section 5, if such repair shall not have already been paid for by the Charterer, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and any balance remaining after compliance with said Section 5 shall be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but shall be paid to a trust company acting as an insurance trustee on terms acceptable to the Landlord, and held by any such Mortgagee, to be paid out from time to time as such Restoration progresses. The Tenant shall pay to the Indenture Trustee as security for the obligations Landlord, its proportionate share of the Charterer amount of any deductible amounts as Additional Rent. If the Landlord has maintained the insurance coverage required to be maintained by it under this Charter Lease and the obligations cost of Restoration exceeds proceeds of insurance that are available to the Landlord by not less than $2,000,000, excluding deductibles, the Landlord shall not be obligated to carry out the Restoration. If the Landlord elects not to carry out the Restoration it shall give notice thereof to the Tenant and upon the giving of such notice this Lease shall terminate as of the Owner Trustee under date notice is given and the Indenture and, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount Landlord shall be paid entitled to retain all of the Charterer or the Owner Trustee, as the case may beLandlord's insurance proceeds for its own account.

Proceeds of Insurance. Payments under all policies required hereby in respect of loss or damage to the Vessel, which payments are in excess of $5,000,000 or which are made (a) So long as the result of an event constituting an Event of Loss, shall be made to the Indenture Trustee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have has occurred and be is continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, all proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in required hereby which are received by the Indenture and thereafter (i) proceeds of insurance maintained under this Section 10 received Collateral Agent or the Company as the result of the occurrence of an Event of Loss with respect to any Collateral shall be applied as set forth in immediately paid over to or retained by the Company, provided that the Company has fully complied with the terms of Section 114.4 and has made all payments then due and required to be made by the Company under the Indenture, and otherwise shall be paid over to or retained by the Collateral Agent to be held as Temporary Cash Collateral or, if the Company so notifies the Collateral Agent at any time, Cash Collateral hereunder. (iib) the So long as no Event of Default has occurred and is continuing, all proceeds of insurance required hereby which are received by the Collateral Agent or the Company as the result of any such insurance for property damage or loss to the Vessel any Collateral not constituting an Event of Loss shall will be immediately applied in payment for repair (whether such payment be for repair or partial repair already made or for advance payments or deposits requested by the repair of person mailing such damage to the extent required to maintain the Vessel repair) or replacement in accordance with the terms of Section 54.3, if such repair shall not have already been paid for by the ChartererCompany, or, if already paid for by the ChartererCompany, will be immediately applied to reimburse the Charterer Company for its payment of such repair payment, and any balance remaining after compliance with said Section 5 such application or payment shall be immediately paid over to or retained by the Company. (c) All proceeds of insurance required hereby which are received by the Collateral Agent or the Company as a result of any property damage or loss to ground equipment, or other Property, not constituting Ground Equipment or other Collateral shall be immediately paid over to or retained by the Company. (d) All proceeds of insurance received by the Collateral Agent hereunder and not then required to be paid over to, or retained by, the Charterer. Any amount referred to in the preceding sentence that is payable to the Charterer or the Owner Trustee shall not be paid to the Charterer or the Owner Trustee if at the time of such payment an Indenture Event of Default or an Event of Default shall have occurred and be continuing, but Company shall be paid to and held by the Indenture Trustee Collateral Agent as security for Temporary Cash Collateral hereunder or, if the obligations of Company so notifies the Charterer under this Charter and the obligations of the Owner Trustee under the Indenture andCollateral Agent at any time, at such time as there shall no longer be continuing an Indenture Event of Default or an Event of Default, such amount shall be paid to the Charterer or the Owner Trustee, as the case may beCash Collateral.

Proceeds of Insurance. Payments under all policies required hereby The Lessee shall promptly pay to the Indenture Trustee (or, if the Lien of the Indenture has been discharged in respect accordance with the terms thereof, to the Lessor) any proceeds of insurance the Lessee receives (other than pursuant to the next to last sentence of Section 12.2 hereof) covering loss or damage to the Vessel, which payments are in excess of $5,000,000 or Units which are made as payable under the result provisions of an event constituting an Event this Section 12. The proceeds of Loss, shall be made to any insurance carried by the Lessee which are received by the Indenture Trustee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event Lessor on account of Default or Event for any loss or damage in respect of Default shall have occurred and be continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as set forth in the Indenture and thereafter (i) proceeds of insurance maintained under this Section 10 received as the result of the occurrence of an Event of Loss any Unit shall be applied as set forth follows: (i) If such Unit is to be repaired or replaced, the insurance proceeds shall be released to the Lessee or as it may direct from time to time as restoration, replacement, rebuilding, alterations and additions ("Restoration") progresses to pay (or reimburse the Lessee for) the cost of Restoration, but only upon receipt by the Lessor and the Indenture Trustee of (A) an Officer's Certificate of the Lessee in Section 11form and substance reasonably acceptable to the Lessor and the Indenture Trustee showing in reasonable detail the nature of the Restoration, the purpose for which the expenditures were made, the actual cash expenditures made for such purpose and the remaining proceeds held by the Indenture Trustee or the Lessor after such release are not less than 100% of the reasonably estimated remaining cost of completing the Restoration, and stating that there is no Lease Default or Lease Event of Default, and (B) if necessary, a supplement to this Lease and the Indenture sufficient to lease such Restoration and to grant a security interest therein to the Indenture Trustee (and the Lessor agrees to cooperate with the Lessee to effectuate the requirements of this clause (B)); or (ii) the proceeds of any such insurance for damage to the Vessel not constituting an Event of Loss shall be applied in payment for the repair of such damage to the extent required to maintain the Vessel If this Lease is terminated in accordance with the provisions of Section 5, if such repair shall not have already been paid for 11.2(ii) hereof and all amounts payable by the ChartererLessee under Section 11.2(ii) have been paid, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and any balance remaining after compliance with said Section 5 all insurance proceeds shall be paid over to, or retained by, released to the Charterer. Any Lessee; provided that any amount referred to in the preceding sentence that herein which is payable to the Charterer or the Owner Trustee Lessee shall not be paid to the Charterer or the Owner Trustee Lessee if at the time of such payment an Indenture Event of a Lease Default or an Lease Event of Default shall have occurred and be continuing, but and in such event all such amounts shall be paid to and held by the Indenture Trustee (or, after the Lien of the Indenture has been discharged in accordance with the terms thereof, the Lessor) as security for the obligations of the Charterer Lessee to make payments under and perform this Charter and the obligations of the Owner Trustee under the Indenture and, at Lease. At such time as there shall no longer not be continuing an Indenture Event of any Lease Default or an Lease Event of Default, all such amount amounts at the time held by the Indenture Trustee or the Lessor (unless theretofore otherwise applied to the obligations of the Lessee hereunder) shall be paid to the Charterer Lessee. Notwithstanding the foregoing, any amounts payable to the Indenture Trustee pursuant to this Section 12.3 as a result of a loss or casualty occurring prior to the Owner Trustee, as Lease Term Commencement Date shall be paid to the case may beConstruction Loan Agent.

Proceeds of Insurance. Payments under all policies required hereby in respect In the event of loss or damage by reason of hazards, casualties, contingencies and perils for which insurance has been required by Lender hereunder, Borrower shall give immediate notice thereof to Lender, and Lender is hereby irrevocably appointed as attorney-in-fact coupled with an interest, for Lender to, at its option, make proof of loss if not made promptly by Borrower, and each insurance company concerned is hereby notified, authorized and directed to make payment for such loss directly to Lender, instead of to Borrower and Lender jointly, and Borrower hereby authorizes Lender to adjust and compromise any losses for which insurance proceeds are payable under any of the aforesaid insurance policies and, after deducting the costs of collection, to apply the proceeds of such insurance, at its option, as follows: (a) to the Vesselrestoration or repair of the insured Improvements, which payments are in excess of $5,000,000 or which are made as the result of an event constituting an Event of LossFixtures and Personal Property, shall be made to the Indenture Trustee, the Owner Trustee or to whomever shall then be entitled thereto, and all other payments thereunder shall be made to the Charterer provided that no Indenture Event of Default or Event of Default shall have occurred and be continuing. As among the Participants, CNB, the Owner Trustee, the Indenture Trustee, the Guarantor and the Charterer it is agreed that during such period as the Indenture shall be in effect, proceeds of insurance maintained pursuant to this Section 10 shall be paid and applied as conditions set forth below are satisfied and, in the Indenture opinion and thereafter sole discretion of Lender, such restoration or repair is reasonably practical and, provided further, that, in the opinion and sole discretion of Lender, either: (i) the insurance proceeds so collected are sufficient to cover the cost of insurance maintained under this Section 10 received as the result such restoration of the occurrence of an Event of Loss shall be applied as set forth in Section 11damage or destruction, and or (ii) the insurance proceeds so collected are not sufficient alone to cover the cost of any such restoration, but are sufficient therefor when taken together with funds provided and made available by Borrower from other sources; in which event Lender shall make such insurance proceeds available to Borrower for damage the purpose of effecting such restoration or repair; but Lender shall not be obligated to see to the Vessel proper application of such insurance proceeds, nor shall the amount of funds so released or used be deemed to be payment of or on account of the indebtedness secured hereby, or (b) if the conditions set forth in (a) are not constituting an Event satisfied, to the reduction of Loss the indebtedness secured hereby, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said indebtedness is otherwise adequately secured, in which event such proceeds shall be applied in payment for against the repair indebtedness secured hereby and the payments due on account of such damage indebtedness shall be reduced accordingly. None of such actions taken by Lender shall be deemed to be or result in a waiver or impairment of any lien or right of Lender under this Mortgage, nor will the application of such insurance proceeds to the extent required reduction of the indebtedness serve to maintain the Vessel in accordance with Section 5, if such repair shall not have already been paid for by the Charterer, or, if already paid by the Charterer, to reimburse the Charterer for its payment of such repair and cure any balance remaining after compliance with said Section 5 shall be paid over to, or retained by, the Charterer. Any amount referred to default in the preceding sentence that is payable payment thereof. In the event of foreclosure of this Mortgage or other transfer of title to the Charterer or Property in extinguishment of the Owner Trustee indebtedness secured hereby, all right, title and interest of Borrower in and to any insurance policies then in force including any rights to unearned premiums and in and to insurance proceeds then payable shall not be paid pass to the Charterer purchaser or grantee. Lender's agreement to make insurance proceeds available under (a) above is subject to satisfaction of the Owner Trustee if following terms and conditions at the time of each disbursement contemplated hereby: (A) Borrower shall not be in default under any of the terms, covenants and conditions of any of the Sale Documents; (B) To the extent required by Lender, the plans and specifications for the restoration of the Property shall be approved in writing by Lender; (C) If required by Lender, Borrower shall provide suitable completion, payment and performance bonds and builders' all risk insurance for such restoration in form and amount acceptable to Lender; (D) The insurers under applicable policies of fire or other casualty insurance do not assert any defense to payment an Indenture Event under such policies against Lender or Borrower; (E) The funds held by Lender shall be disbursed no more often than once per month. Lender's obligation to make any disbursement shall be conditioned upon Lender's receipt of Default or an Event of Default shall have occurred and be continuing, but written certification from Lender's inspecting architect/engineer (whose fees shall be paid by Borrower) that all construction and work for which such disbursement is requested has been completed in accordance with the approved plans and specifications and all applicable building codes, zoning ordinances and all other applicable federal, state or local laws, ordinances or regulations; (F) Lender shall be entitled to require and held to impose such other conditions to the release of such funds as would be customarily or reasonably required and imposed by local construction lenders for a project of similar nature and cost. Lender shall have the Indenture Trustee as security for option, upon the obligations completion of such restoration of the Charterer under this Charter and Property, to apply any surplus insurance proceeds remaining after the obligations completion of such restoration to the reduction of the Owner Trustee under outstanding principal balance of the Indenture and, at such time as there shall no longer Note; notwithstanding the fact that the amount owing thereon may not then be continuing an Indenture Event of Default due and payable or an Event of Default, such amount shall that said indebtedness may otherwise be paid to the Charterer or the Owner Trustee, as the case may be.adequately secured;