Rebuilding or Replacement Sample Clauses
The Rebuilding or Replacement clause outlines the obligations and procedures for restoring or substituting property that has been damaged or destroyed. Typically, this clause specifies whether the property owner or insurer is responsible for rebuilding, the standards to which the work must be completed, and any timeframes or conditions that must be met. For example, after a fire damages a building, this clause would govern how and when the structure is repaired or replaced. Its core function is to ensure that there is a clear, agreed-upon process for returning property to its pre-loss condition, thereby minimizing disputes and delays following a loss event.
Rebuilding or Replacement. In connection with the Facility Lessee's obligation to rebuild or replace the Facility pursuant to SECTION 10.1(B), the Facility Lessee shall have satisfied the conditions set forth in clauses (a) through (g) below (collectively, the "REBUILD CONDITIONS"):
(a) delivery to the Owner Participant of either (i) an opinion reasonably satisfactory to it from Owner Participant's Counsel to the effect that such rebuilding or replacement should not result in any material unindemnified incremental tax consequences to the Owner Participant, (ii) an indemnity against such risk in form and substance reasonably satisfactory to the Owner Participant from or guaranteed by an entity that meets the Minimum Credit Rating or (iii) any other indemnity arrangement against such risks satisfactory to the Owner Participant;
(b) delivery to the Owner Participant and, so long as the Lessor Notes are outstanding, the Security Agent, the Lender and the Bondholder Trustee (i) a report of the Engineering Consultant, or such other independent engineer satisfactory to the Owner Participant and the Lease Indenture Trustee, to the effect that the rebuilding or replacement of the Facility is technologically feasible and economically viable and that it is reasonable to expect that such rebuilding or replacement can be completed prior to the end of the Facility Lease Term, including any Renewal Lease Term then in effect or elected by the Facility Lessee (including any extension pursuant to SECTION 10.1(B), and (ii) a report of an appraiser selected by the Facility Lessee and reasonably acceptable to the Owner Participant, to the effect that the Facility will after completion of the rebuilding or replacement have at least the same current value, residual value, utility and remaining economic useful life as the Facility immediately prior to the Event of Loss (assuming the Facility was in the condition required by the terms of this Facility Lease) and such rebuilding or replacement will not result in the Facility being "limited use property" within the meaning of Rev. Proc. 2001-28, 2001-19 I.R.B. 1156;
(c) delivery of a certificate from a responsible officer of the Facility Lessee to the reasonable satisfaction of the Owner Participant and the Lease Indenture Trustee that the Facility Lessee (i) has adequate financial resources, from insurance proceeds or otherwise, to complete such rebuilding or replacement and to perform its other obligations under the Operative Documents including the payment...