Common use of Release of Proceeds Clause in Contracts

Release of Proceeds. Notwithstanding the foregoing, and provided no default then exists under the Loan Documents (provided Borrower shall have the right to cure such default within any applicable cure period), in the event of loss or damage to the Property by fire, earthquake, other catastrophe or event for which insurance has been maintained by Borrower, and the amount of such loss or damage does not exceed fifty percent (50%) of the outstanding principal balance of the Loan, Lender hereby agrees to allow the proceeds of insurance to be used for the Restoration and to release such insurance proceeds to Borrower as the Restoration progresses, subject to the following conditions (collectively, the “Restoration Conditions”): (i) on a proforma basis, the Improvements shall be at least eighty percent (80%) leased within twelve (12) months after the estimated completion of the Restoration; (ii) Lender shall be satisfied that the Restoration is expected to be completed in accordance with the terms hereof no later than ninety (90) days prior to the Maturity Date; (iii) the plans and specifications for the Restoration shall have been approved in writing by Lender in advance; (iv) at all times during the Restoration, Borrower has deposited with Lender funds which, when added to the insurance proceeds received by Lender, are sufficient to complete the Restoration in accordance with the approved plans and specifications, and Providence Square 37 Loan No. 00-1103028 4813-0380-2520, v. 3 all applicable building codes, zoning ordinances, regulations and Laws, and the funds on deposit with Lender are sufficient to complete the Restoration of the Property as certified to Lender by Lender’s inspecting architect/engineer; (v) Borrower provides suitable completion, payment and performance bonds, and builders’ all risk insurance in such amounts, with such deductibles and upon such other terms and conditions as are acceptable to Lender, together with all necessary licenses and permits for such Restoration in form and amount acceptable to Lender; (vi) Lender shall have the option, upon the completion of the Restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of the Restoration to the reduction, at Par, of the outstanding principal balance of the Note, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said Loan is otherwise adequately secured; (vii) the insurance proceeds and any other funds held by Lender shall be disbursed by Lender no more often than once per month and in amounts of not less than $50,000 each, except the final disbursement may be in an amount less than $50,000; (viii) Lender’s obligation to make any such disbursement shall be conditioned upon Lender’s receipt of written certification from Lender’s inspecting architect/engineer (whose fees shall be reimbursed to Lender 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 in accordance with all applicable building codes, zoning ordinances and all other Laws and, further, that Borrower has deposited with Lender sufficient funds to complete such Restoration; and (ix) Lender shall be entitled to require and to impose such other conditions to the release of such funds as would be customarily required and imposed by institutional mortgage lenders or that are otherwise commercially reasonable. Borrower’s failure to timely commence Restoration and diligently pursue the completion thereof, subject to the Restoration Conditions, will constitute an Event of Default under the Loan Documents. Furthermore, Borrower’s failure to use the insurance proceeds received directly from the insurance company to rebuild and restore shall trigger recourse liability pursuant to Section 10.1(c) of this Agreement.

Release of Proceeds. Notwithstanding the foregoing, and provided no default then exists under the Loan Documents (provided unless Borrower shall have is in good faith diligently pursuing the right to cure of such default within and cures such default prior to the expiration of any applicable cure periodperiods), in the event of loss or damage to the Property by fire, earthquake, other catastrophe or event for which insurance has been maintained by Borrower, and the amount of such loss or damage does not exceed fifty percent (50%) of the outstanding principal balance of the LoanLoan and does not result in any spill, seepage, discharge, emission or other release of any Hazardous Substances at or about the Property which materially adversely affects the marketability of title to the Property, or the usability, potential for development or market value of the Property, any of the Leases or the Rents (as reasonably determined by Lender), Lender hereby agrees to allow the proceeds of insurance to be used for the Restoration and to release such insurance proceeds to Borrower as the Restoration progresses, subject to the following conditions (collectively, the “Restoration Conditions”): (i) on a proforma basisupon Lender’s commercially reasonable projection, following the Restoration, the Improvements net operating income generated by the Property shall be have at least eighty percent 1.0 x debt service coverage ratio (80%) leased within twelve (12) months after on an interest-only basis); provided that, to the estimated completion of extent the Restorationnet operating income does not satisfy the foregoing debt service coverage ratio, Borrower shall have the right, at its option, to satisfy this condition by posting funds with Lender in an amount which, when aggregated with the net operating income generated by the Property, would satisfy such debt service coverage ratio; (ii) Lender shall be satisfied that the Restoration is expected to be completed in accordance with the terms hereof no later than ninety (90) days prior to the Maturity Date; (iii) the plans and specifications for the Restoration shall have been approved in writing by Lender Xxxxxx in advance, such approval not to be unreasonably withheld; (iv) at all times during the Restoration, Borrower has deposited with Lender funds which, when added to the insurance proceeds received by Lender, are sufficient to complete the Restoration in accordance with the approved plans and specifications, and Providence Square 37 Loan No. 00-1103028 4813-0380-2520, v. 3 all applicable building codes, zoning ordinances, regulations and Laws, and the funds on deposit with Lender are sufficient to complete the Restoration of the Property as certified to Lender by LenderXxxxxx’s inspecting architect/engineer;; Flats at Carrs Hill 34 Loan No. 00-1103560 30367245 (v) Borrower or its contractors provides suitable completion, payment and performance bondsbonds (if required), and builders’ all risk insurance in such amounts, with such deductibles and upon such other terms and conditions as are acceptable to Lender, together with all necessary licenses and permits for such Restoration in form and amount acceptable to Lender; (vi) Lender shall have the option, upon the completion of the Restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of the Restoration to the reduction, at ParPar (so long as no Event of Default then exists), of the outstanding principal balance of the Note, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said Loan is otherwise adequately secured; (vii) the insurance proceeds and any other funds held by Lender shall be disbursed by Lender no more often than once per month and in amounts of not less than $50,000 each, except the final disbursement may be in an amount less than $50,000; (viii) Lender’s obligation to make any such disbursement shall be conditioned upon LenderXxxxxx’s receipt of written certification from LenderXxxxxx’s inspecting architect/engineer (whose fees shall be reimbursed to Lender by BorrowerXxxxxxxx) that all construction and work for which such disbursement is requested has been completed in accordance with the approved plans and specifications and in accordance with all applicable building codes, zoning ordinances and all other Laws and, further, that Borrower has deposited with Lender sufficient funds to complete such Restoration; and (ix) Lender shall be entitled to require and to impose such other conditions to the release of such funds as would be customarily required and imposed by institutional mortgage lenders for similar projects or that are otherwise commercially reasonable. BorrowerXxxxxxxx’s failure to timely commence Restoration and diligently pursue the completion thereof, subject to the Restoration Conditions, will constitute an Event of Default under the Loan Documents. Furthermore, BorrowerXxxxxxxx’s failure to use the insurance proceeds received directly from the insurance company to rebuild and restore shall trigger recourse liability pursuant to Section 10.1(c) of this Agreement.

Release of Proceeds. Notwithstanding the foregoing, and provided no default then exists under the Loan Documents (provided Borrower shall have the right to cure such default within any applicable cure period), in the event of loss or damage to the Property by fire, earthquake, other catastrophe or event for which insurance has been maintained by Borrower, and the amount of such loss or damage does not exceed fifty twenty-five percent (5025%) of the outstanding principal balance of the LoanLoan and does not result in any spill, seepage, discharge, emission or other release of any Hazardous Substances at or about the Property which materially adversely affects the marketability of title to the Property, or the usability, potential for development or market value of the Property, any of the Leases or the Rents (as reasonably determined by Lender), Lender hereby agrees to allow the proceeds of insurance to be used for the Restoration and to release such insurance proceeds to Borrower as the Restoration progresses, subject to the following conditions (collectively, the “Restoration Conditions”): (i) on a proforma basis, the Improvements shall be at least eighty percent (80%) leased within after Restoration pursuant to Leases that have tenants in occupancy and paying rent pursuant to their respective Lease, more than twelve (12) months after of term remaining following the estimated completion of the RestorationRestoration and been approved in writing by Lender (if approval is required under the terms of the Loan Documents); (ii) Lender shall be satisfied that the Restoration is expected to shall be completed in accordance with the terms hereof no later than ninety (90) days prior to the Maturity Date; (iii) the plans and specifications for the Restoration shall have been approved in writing by Lender in advance; (iv) at all times during the Restoration, Borrower has deposited with Lender funds which, when added to the insurance proceeds received by Lender, are sufficient to complete the Restoration in accordance with the approved plans and specifications, and Providence Square 37 Loan No. 00-1103028 4813-0380-2520, v. 3 all applicable building codes, zoning ordinances, regulations and Laws, and the funds on deposit with Lender are sufficient to complete the Restoration of the Property as certified to Lender by Lender’s an inspecting architect/engineerengineer reasonably approved by Lender and Borrower; (v) Borrower provides suitable completion, payment and performance bonds, and builders’ all risk insurance in such amounts, with such deductibles and upon such other terms and conditions as are acceptable to Lender, together with all necessary licenses and permits for such Restoration in form and amount acceptable to Lender; (vi) Lender shall have the option, upon the completion of the Restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of the Restoration to the reduction, at Par, of the outstanding principal balance of the Note, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said Loan is otherwise adequately secured; (vii) the insurance proceeds and any other funds held by Lender shall be disbursed by Lender no more often than once per month quarter and in amounts of not less than $50,000 each, except the final disbursement may be in an amount less than $50,000; (viii) Lender’s obligation to make any such disbursement shall be conditioned upon Lender’s receipt of written certification from Lender’s inspecting architect/engineer (whose fees shall be reimbursed to Lender 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 in accordance with all applicable building codes, zoning ordinances and all other Laws and, further, that Borrower has deposited with Lender sufficient funds to complete such Restoration; and (ix) Lender shall be entitled to require and to impose such other conditions to the release of such funds as would be customarily required and imposed by institutional mortgage lenders or that are otherwise commercially reasonable. Borrower’s failure to timely commence Restoration and diligently pursue the completion thereof, subject to the Restoration Conditions, will constitute an Event of Default under the Loan Documents, provided that, it shall not be an Event of Default if the Condominium Board fails to restore any of the Common Elements, or a Tenant fails to restore its premises to the extent it is obligated to do so under its Lease, so long as Borrower has used commercially reasonable efforts to enforce the Condominium Documents and/or the applicable Lease in order to enforce the Condominium Board’s, or such Tenant’s, obligations under the Condominium Documents and/or such Leases. Furthermore, Borrower’s failure to use misappropriation of the insurance proceeds received directly from the insurance company to rebuild and restore shall trigger recourse liability pursuant to Section 10.1(c) of this Agreement.

Release of Proceeds. Notwithstanding the foregoing, and provided no default then exists under the Loan Documents (provided Borrower shall have the right to cure such default within any applicable cure period), in the event of loss or damage to the Property by fire, earthquake, other catastrophe or event for which insurance has been maintained by Borrower, and the amount of such loss or damage does not exceed fifty twenty-five percent (5025%) of the outstanding principal balance of the LoanLoan and does not result in any spill, seepage, discharge, emission or other release of any Hazardous Substances at or about the Property which materially adversely affects (x) the marketability of title to the Property, (y) the usability, potential for development or market value of the Property, or (z) any of the Leases or the Rents (as reasonably determined by Lender), Lender hereby agrees to allow the proceeds of insurance to be used for the Restoration and to release such insurance proceeds to Borrower as the Restoration progresses, subject to the following conditions (collectively, the “Restoration Conditions”): (i) on a the proforma basis, shall indicate that the Improvements shall be at least eighty percent (80%) leased within twelve (12) months after the estimated completion of the RestorationRestoration is fully completed and stabilization has occurred; (ii) Lender shall be satisfied that the Restoration is expected to be completed in accordance with the terms hereof no later than ninety (90) days prior to the Maturity Date; (iii) the plans and specifications for the Restoration shall have been approved in writing by Lender in advance, such approval not to be unreasonably withheld; (iviii) at all times during the Restoration, Borrower has deposited with Lender funds which, when added to the insurance proceeds received by Lender, are sufficient to complete the Restoration in accordance with the approved plans and specifications, and Providence Square 37 Loan No. 00-1103028 4813-0380-2520, v. 3 all applicable building codes, zoning ordinances, regulations and Laws, and the funds on deposit with Lender are sufficient to complete the Restoration of the Property as certified to Lender by Lender’s inspecting architect/engineer; (viv) Borrower provides suitable completion, payment and performance bonds, and builders’ all risk insurance in such amounts, with such deductibles and upon such other terms and conditions as are acceptable to Lender, together with all necessary licenses and permits for such Restoration in form and amount reasonably acceptable to Lender; (viv) Lender shall have the option, upon the completion of the Restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of the Restoration to the reduction, at Par, of the outstanding principal balance of the Note, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said Loan is otherwise adequately secured; (viivi) the insurance proceeds and any other funds held by Lender shall be disbursed by Lender no more often than once per month and in amounts of not less than $50,000 each, except the final disbursement may be in an amount less than $50,000; (viiivii) Lender’s obligation to make any such disbursement shall be conditioned upon Lender’s receipt of written certification from Lender’s inspecting Domain at Tallahassee 32 Loan No. 00-1102733 architect/engineer (whose fees shall be reimbursed to Lender 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 in accordance with all applicable building codes, zoning ordinances and all other Laws and, further, that Borrower has deposited with Lender sufficient funds to complete such Restoration; and (ixviii) Lender shall be entitled to require and to impose such other conditions to the release of such funds as would be customarily required and imposed by institutional mortgage lenders or that are otherwise commercially reasonable. Borrower’s failure to timely commence Restoration and diligently pursue the completion thereof, subject to the Restoration Conditions, will constitute an Event of Default under the Loan Documents. Furthermore, Borrower’s failure to use the insurance proceeds received directly from the insurance company to rebuild and restore shall trigger recourse liability pursuant to Section 10.1(c10.1(iii) of this Agreement.

Release of Proceeds. Notwithstanding the foregoing, and provided no default then exists under the Loan Documents (provided unless Borrower shall have is in good faith diligently pursuing the right to cure of such default within and cures such default prior to the expiration of any applicable cure periodperiods), in the event of loss or damage to the Property by fire, earthquake, other catastrophe or event for which insurance has been maintained by Borrower, and the amount of such loss or damage does not exceed fifty twenty-five percent (5025%) of the outstanding principal balance of the LoanLoan allocated to the Individual Property damaged by such Casualty and does not result in any spill, seepage, discharge, emission or other release of any Hazardous Substances at or about the Individual Property which materially adversely affects the marketability of title to the Individual Property, or the usability, potential for development or market value of the Individual Property, any of the Leases or the Rents (as reasonably determined by Lender), Lender hereby agrees to allow the proceeds of insurance to be used for the Restoration and to release such insurance proceeds to Borrower as the Restoration progresses, subject to the following conditions (collectively, the “Restoration Conditions”): (i) on a proforma basis, the Improvements on the Individual Property damaged by the Casualty shall be at least eighty percent (80%) leased within twelve after Restoration pursuant to Leases that have tenants in occupancy and paying rent pursuant to their respective Lease, with more than six (126) months after of term remaining following the estimated completion of the RestorationRestoration and been approved in writing by Lender (if approval is required under the terms of the Loan Documents); (ii) Lender shall be satisfied that the Restoration is expected to shall be completed in accordance with the terms hereof no later than ninety (90) days prior to the Maturity Date; (iii) the plans and specifications for the Restoration shall have been approved in writing by Lender Xxxxxx in advance; (iv) at all times during the Restoration, Borrower has deposited with Lender funds which, when added to the insurance proceeds received by Lender, are sufficient to complete the Restoration in accordance with the approved plans and specifications, and Providence Square 37 Loan No. 00-1103028 4813-0380-2520, v. 3 all applicable building codes, zoning ordinances, regulations and Laws, and the funds on deposit with Lender are sufficient to complete the Restoration of the Property as certified to Lender by LenderXxxxxx’s inspecting architect/engineer; (v) Borrower provides suitable completion, payment and performance bonds, and builders’ all risk insurance in such amounts, with such deductibles and upon such other terms and conditions as are acceptable to Lender, together with all necessary licenses and permits for such Restoration in form and amount reasonably acceptable to Lender; (vi) Lender shall have the option, upon the completion of the Restoration of the Property, to apply any surplus insurance proceeds remaining after the completion of the Restoration to the reduction, at ParPar (so long as no Event of Default then exists), of the outstanding principal balance of the Note, notwithstanding the fact that the amount owing thereon may not then be due and payable or that said Loan is otherwise adequately secured; (vii) the insurance proceeds and any other funds held by Lender shall be disbursed by Lender no more often than once per month quarter and in amounts of not less than $50,000 100,000 each, except the final disbursement may be in an amount less than $50,000100,000; (viii) Lender’s obligation to make any such disbursement shall be conditioned upon LenderXxxxxx’s receipt of written certification from LenderXxxxxx’s inspecting architect/engineer (whose fees shall be reimbursed to Lender by BorrowerXxxxxxxx) that all construction and work for which such disbursement is requested has been completed in accordance with the approved plans and specifications and in accordance with all applicable building codes, zoning ordinances and all other Laws and, further, that Borrower has deposited with Lender sufficient funds to complete such Restoration; and (ix) Lender shall be entitled to require and to impose such other conditions to the release of such funds as would be customarily required and imposed by institutional mortgage lenders or that are otherwise commercially reasonable. BorrowerXxxxxxxx’s failure to timely commence Restoration and diligently pursue the completion thereof, subject to the Restoration Conditions, will constitute an Event of Default under the Loan Documents. Furthermore, BorrowerXxxxxxxx’s failure to use the insurance proceeds received directly from the insurance company to rebuild and restore shall trigger recourse liability pursuant to Section 10.1(c) of this Agreement.