Use of Insurance Proceeds. (a) Subject to the conditions set forth below, all proceeds of casualty insurance on the Improvements shall be made available to pay for the cost of Restoration if any part of the Improvements are damaged or destroyed in whole or in part by fire or other casualty. Subject to Section 3.7, all such ----------- insurance proceeds, less the cost of collection, shall be paid into a trust account to be created by an independent third party ("Insurance Trustee") to be chosen by (i) the First Mortgagee if the Project Premises is encumbered by a First Mortgage or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the proceeds are to be made available. Nothing herein shall prohibit the First Mortgagee from acting as the Insurance Trustee. If Developer or City for whatever reason, cannot or will not participate in the selection of the Insurance Trustee, then the other party shall select the Insurance Trustee. Developer shall name the Insurance Trustee appointed pursuant to this Section 16.2 as the sole loss payee on Developer's ------------ casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City or Developer may apply to the Circuit Court for the County for the appointment of a local bank having a capital surplus in excess of Two Hundred Million Dollars ($200,000,000) as the Insurance Trustee. The Insurance Trustee shall hold the insurance proceeds in trust to be disbursed in stages to pay for the cost of the Restoration, as hereafter provided. The Insurance Trustee shall deposit the insurance proceeds in an interest bearing account and any after tax interest earned thereon shall be added to the insurance proceeds. All fees and expenses of the Insurance Trustee shall be paid by Developer.
Appears in 1 contract
Use of Insurance Proceeds. (a) Subject to the conditions set forth below, all All proceeds of casualty insurance on the Improvements Development shall be made available to pay for the cost of Restoration restoration and repair if any part of the Improvements are Development is damaged or destroyed in whole or in part by fire or other casualty. Subject All work required to Section 3.7, all be performed in connection with such ----------- restoration and repair is hereinafter called the "Repair Work." All such insurance proceeds, less the cost of collection, shall be paid into a trust account to be created by an independent third party (the "Insurance Trustee") to be chosen by (i) the First Mortgagee if the Project Premises is encumbered by a First Mortgage or (ii) Developer Tenant and City in the event there is no First Mortgagee, Landlord within ten (10) days of when the proceeds are to made available (and approved by each Leasehold Mortgagee), which shall be made available. Nothing herein shall prohibit located in the First Mortgagee from acting as the Insurance TrusteeCity. If Developer Tenant or City Landlord for whatever reason, cannot or will not participate in the selection of the Insurance Trustee, then the other party (with approval of each Leasehold Mortgagee) shall select the Insurance Trustee. Developer Tenant shall name the Insurance Trustee appointed pursuant to this Section 16.2 12.2 as the sole loss payee on DeveloperTenant's ------------ casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City Landlord, Tenant or Developer any Leasehold Mortgagee may apply to the Circuit Civil District Court for the County Parish of Orleans, State of Louisiana for the appointment of a local national bank having a capital surplus located in excess of Two Hundred Million Dollars ($200,000,000) the City as the Insurance Trustee. The Insurance Trustee shall hold the insurance proceeds in trust to be disbursed in stages to pay for the cost of the RestorationRepair Work, as hereafter provided. The Insurance Trustee shall deposit the insurance proceeds in an interest bearing account and any after after-tax interest earned thereon shall be added to the insurance proceeds. All fees and expenses of If the Insurance Trustee shall be paid by Developer.insurance proceeds are insufficient to pay for the Repair Work, Tenant shall, nevertheless, complete the Repair Work and, after the funds in the trust account have been exhausted, pay for it in full using its own 125
Appears in 1 contract
Samples: Lease Agreement (JCC Holding Co)
Use of Insurance Proceeds. If prior to full payment of the Bonds (aor provision for payment thereof having been made in accordance with the provisions of the Trust Agreement) Subject to and full payment of the conditions set forth belowState Assistance Amount, all proceeds of casualty insurance on the Improvements Project shall be made available to pay for the cost of Restoration if any part of the Improvements are damaged or destroyed (in whole or in part part) or damaged by fire fire, flood, windstorm or other casualtycasualty to such extent that the claim for loss resulting from such destruction or damage is in excess of $100,000, the TDD Bonds Beneficiary shall promptly give written notice thereof to the Director, the Borrower, the Trustee and the TDD Trustee. Subject to Section 3.7All Net Proceeds of insurance policies resulting from claims for such losses in excess of $100,000 shall, all such ----------- insurance proceeds, less so long as the cost of collection, Bonds shall be outstanding, but subject to the provisions of the Senior Mortgage, be paid into a trust account to be created and held by an independent third party ("Insurance Trustee"the Trustee in the Collateral Proceeds Account, whereupon, unless the TDD Bonds Beneficiary shall have elected to exercise its option to prepay all amounts due under this Loan Agreement pursuant to the provisions of Section 10.2(a) to be chosen by of this Loan Agreement, (i) the First Mortgagee if TDD Bonds Beneficiary shall proceed to repair, rebuild or restore the property damaged or destroyed with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the TDD Bonds Beneficiary and as will not make the Project Premises is encumbered by a First Mortgage or unsuitable for the Project Purposes, and (ii) Developer and City the Trustee will disburse moneys in the event there is no First MortgageeCollateral Proceeds Account to or upon the direction of the TDD Bonds Beneficiary for payment of the costs of such repair, within ten (10) days of when rebuilding or restoration, either on completion thereof or, if the proceeds are to TDD Bonds Beneficiary shall so request, as the work progresses. Any such disbursements shall be made available. Nothing herein shall prohibit pursuant to the First Mortgagee from acting as the Insurance Trustee. If Developer or City procedures set forth in Section 3.3 of this Loan Agreement for whatever reason, cannot or will not participate disbursement of moneys in the selection Project Fund, including, but not limited to, the requirement that the TDD Bonds Beneficiary obtain the written approval of the Insurance TrusteeDirector and the approval, then or deemed approval, of the other party shall select Borrower with respect to each disbursement. In the Insurance Trustee. Developer shall name event the Insurance Trustee appointed pursuant to this Section 16.2 as the sole loss payee on Developer's ------------ casualty insurance. If those parties who participate moneys in the selection process canCollateral Proceeds Account are not agree on sufficient to pay in full the selection costs of such repair, rebuilding or restoration, the TDD Bonds Beneficiary nonetheless shall complete the work and pay the costs thereof from its own resources. The TDD Bonds Beneficiary shall not, by reason of the Insurance Trusteepayment of such excess costs, either City be entitled to any reimbursement from the Director or Developer may apply to the Circuit Court for the County for the appointment of a local bank having a capital surplus any diminution in excess of Two Hundred Million Dollars ($200,000,000) as the Insurance Trustee. The Insurance Trustee shall hold the insurance proceeds in trust to be disbursed in stages to pay for the cost or postponement of the Restoration, as hereafter provided. The Insurance Trustee shall deposit the insurance proceeds in an interest bearing account and any after tax interest earned thereon shall be added to the insurance proceeds. All fees and expenses amounts payable under Section 4.3 of the Insurance Trustee shall be paid by Developerthis Loan Agreement.
Appears in 1 contract
Samples: Loan Agreement (Hall of Fame Resort & Entertainment Co)
Use of Insurance Proceeds. Mortgagee shall make the net insurance proceeds received by it (after reimbursement of Mortgagee’s reasonable out-of-pocket costs of collecting and disbursing the same) available to Mortgagor to pay the cost of restoration, repair and rebuilding of the Mortgaged Property, subject to all of the following conditions precedent: (a) Subject to the conditions set forth below, all proceeds of casualty insurance on the Improvements There shall be made available to pay for no Event of Default in existence at the time of any disbursement of the insurance proceeds; (b) Mortgagee shall have determined, in its reasonable discretion, that the cost of Restoration if any part restoration, repair and rebuilding is and will be equal to or less than the amount of insurance proceeds and other funds deposited by Mortgagor with Mortgagee; (c) Mortgagee shall have determined, in its reasonable discretion, that the Improvements are damaged or destroyed restoration, repair and rebuilding can be completed in whole or accordance with plans and specifications approved by Mortgagee (such approval not to be unreasonably withheld), in part by fire or other casualty. Subject to Section 3.7, all such ----------- insurance proceeds, less the cost of collection, accordance with codes and ordinances; (d) All funds shall be paid into a trust account to be created by an independent third party disbursed, at Mortgagee’s option, in accordance with Mortgagee’s customary disbursement procedures for construction loans; and ("Insurance Trustee"e) to be chosen by (i) the First Mortgagee if the Project Premises is encumbered by a First Mortgage The Casualty results in damage of $250,000.00 or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the proceeds are to be made available. Nothing herein shall prohibit the First Mortgagee from acting as the Insurance Trusteeless. If Developer or City for whatever reason, canany of these conditions shall not or will not participate in the selection of the Insurance Trusteebe satisfied, then Mortgagee shall have the other party shall select the Insurance Trustee. Developer shall name the Insurance Trustee appointed pursuant right to this Section 16.2 as the sole loss payee on Developer's ------------ casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City or Developer may apply to the Circuit Court for the County for the appointment of a local bank having a capital surplus in excess of Two Hundred Million Dollars ($200,000,000) as the Insurance Trustee. The Insurance Trustee shall hold use the insurance proceeds in trust to prepay the Obligations. If any insurance proceeds shall remain after completion of the restoration, repair and rebuilding of the Mortgaged Property, they shall be disbursed in stages to pay for Mortgagor, or at the cost of Mortgagee’s discretion, used to prepay the Restoration, as hereafter providedObligations. The Insurance Trustee shall deposit In the event such insurance proceeds are made available for restoration and repair by the Mortgagee, Mortgagor shall pay all costs incurred by Mortgagee in an interest bearing account and any after tax interest earned thereon shall be added connection with the application of such insurance proceeds (including but not limited to the insurance proceeds. All fees and expenses of the Insurance Trustee shall be paid reasonable costs incurred by Developer.14
Appears in 1 contract
Samples: Cardinal Ethanol LLC
Use of Insurance Proceeds. (a) Subject to the conditions set forth below, all All proceeds of casualty insurance on the Improvements Development shall be made available to pay for the cost of Restoration restoration and repair if any part of the Improvements are Development is damaged or destroyed in whole or in part by fire or other casualty. Subject All work required to Section 3.7, all be performed in connection with such ----------- restoration and repair is hereinafter called the "Repair Work." Such insurance proceeds, less the cost of collection, proceeds shall be paid deposited by Tenant directly into a trust segregated account to be created established by an independent third party ("Insurance Trustee") to be chosen by (i) the First Mortgagee if the Project Premises is encumbered by a First Mortgage or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the proceeds are to be made available. Nothing herein shall prohibit the First Mortgagee from acting as the Insurance Trustee. If Developer or City for whatever reason, cannot or will not participate in the selection of the Insurance Trustee, then the other party shall select the Insurance Trustee. Developer shall name the Insurance Trustee appointed pursuant to this Section 16.2 as the sole loss payee on Developer's ------------ casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City or Developer may apply to the Circuit Court for the County for the appointment of Tenant at a local bank having a capital surplus in excess or other local financial institution for the purpose of Two Hundred Million Dollars ($200,000,000) funding the Repair Work. Tenant shall give Landlord notice as to the Insurance Trusteelocation of such account and provide monthly account statements to Landlord. The Insurance Trustee shall hold This account is established as an assurance fund to guarantee the insurance proceeds in trust completion of Repair Work. Tenant does retain the right to be disbursed in stages withdraw funds from this account to pay for the cost Repair Work and to any excess funds in the account following completion of the RestorationRepair Work. Upon receipt of such proceeds in the account, as hereafter providedTenant shall promptly undertake and complete the Repair Work in accordance with this Article XII, and upon completion of the Repair Work, Tenant shall furnish Landlord and each Leasehold Mortgagee with (i) a reasonably detailed report describing the damage or destruction, the Repair Work performed, and the cost thereof, (ii) a certificate executed and acknowledged by a senior officer of Tenant, in form and substance reasonably satisfactory to Landlord and each Leasehold Mortgagee, stating that all of the obligations of Tenant to any contractor, subcontractor, materialman, supplier or any other person performing Repair Work, providing services or supplying material in connection with the Repair Work have been satisfied and discharged in full or otherwise provided for to Landlord's and each Leasehold Mortgagee's reasonable satisfaction, together with all appropriate lien waivers in connection therewith, (iii) a copy of the plans and specifications prepared in connection with Repair Work, and (iv) a certificate of the Architect and of Tenant certifying that the Repair Work has been completed substantially in accordance with the plans and specifications for the Repair Work. The Insurance Trustee shall deposit If the insurance proceeds are insufficient to pay for the Repair Work, Tenant shall, nevertheless, complete the Repair Work and pay for it in full using its own funds. Tenant shall submit a certificate of a licensed and qualified architect or engineer, as may be appropriate (an interest bearing account "Architect"), certifying that the Repair Work has been completed substantially in accordance with the plans and any after tax interest earned thereon specifications for the Repair Work, and its own certificate certifying that the Repair Work has been completed and paid for in full and specifying the amount paid by Tenant. Any certificates required to be given by Tenant under this Article XII shall be added to the insurance proceeds. All fees executed and expenses acknowledged by a senior officer of the Insurance Trustee Tenant and shall be paid by Developerin form and substance reasonably satisfactory to Landlord and each Leasehold Mortgagee.
Appears in 1 contract
Use of Insurance Proceeds. (a) Subject to the conditions set forth below, all a)All proceeds of casualty insurance on the Improvements Development shall be made available to pay for the cost of Restoration restoration and repair if any part of the Improvements are Development is damaged or destroyed in whole or in part by fire or other casualty. Subject All work required to Section 3.7, all be performed in connection with such ----------- restoration and repair is hereinafter called the "Repair Work." Such insurance proceeds, less the cost of collection, proceeds shall be paid deposited by Tenant directly into a trust segregated account to be created established by an independent third party ("Insurance Trustee") to be chosen by (i) the First Mortgagee if the Project Premises is encumbered by a First Mortgage or (ii) Developer and City in the event there is no First Mortgagee, within ten (10) days of when the proceeds are to be made available. Nothing herein shall prohibit the First Mortgagee from acting as the Insurance Trustee. If Developer or City for whatever reason, cannot or will not participate in the selection of the Insurance Trustee, then the other party shall select the Insurance Trustee. Developer shall name the Insurance Trustee appointed pursuant to this Section 16.2 as the sole loss payee on Developer's ------------ casualty insurance. If those parties who participate in the selection process cannot agree on the selection of the Insurance Trustee, either City or Developer may apply to the Circuit Court for the County for the appointment of Tenant at a local bank having a capital surplus in excess or other local financial institution for the purpose of Two Hundred Million Dollars ($200,000,000) funding the Repair Work. Tenant shall give Landlord notice as to the Insurance Trusteelocation of such account and provide monthly account statements to Landlord. The Insurance Trustee shall hold This account is established as an assurance fund to guarantee the insurance proceeds in trust completion of Repair Work. Tenant does retain the right to be disbursed in stages withdraw funds from this account to pay for the cost Repair Work and to any excess funds in the account following completion of the RestorationRepair Work. Upon receipt of such proceeds in the account, as hereafter providedTenant shall promptly undertake and complete the Repair Work in accordance with this Article XII, and upon completion of the Repair Work, Tenant shall furnish Landlord and each Leasehold Mortgagee with (i) a reasonably detailed report describing the damage or destruction, the Repair Work performed, and the cost thereof, (ii) a certificate executed and acknowledged by a senior officer of Tenant, in form and substance reasonably satisfactory to Landlord and each Leasehold Mortgagee, stating that all of the obligations of Tenant to any contractor, subcontractor, materialman, supplier or any other person performing Repair Work, providing services or supplying material in connection with the Repair Work have been satisfied and discharged in full or otherwise provided for to Landlord's and each Leasehold Mortgagee's reasonable satisfaction, together with all appropriate lien waivers in connection therewith, (iii) a copy of the plans and specifications prepared in connection with Repair Work, and (iv) a certificate of the Architect and of Tenant certifying that the Repair Work has been completed substantially in accordance with the plans and specifications for the Repair Work. The Insurance Trustee shall deposit If the insurance proceeds are insufficient to pay for the Repair Work, Tenant shall, nevertheless, complete the Repair Work and pay for it in full using its own funds. Tenant shall submit a certificate of a licensed and qualified architect or engineer, as may be appropriate (an interest bearing account "Architect"), certifying that the Repair Work has been completed substantially in accordance with the plans and any after tax interest earned thereon specifications for the Repair Work, and its own certificate certifying that the Repair Work has been completed and paid for in full and specifying the amount paid by Tenant. Any certificates required to be given by Tenant under this Article XII shall be added to the insurance proceeds. All fees executed and expenses acknowledged by a senior officer of the Insurance Trustee Tenant and shall be paid by Developerin form and substance reasonably satisfactory to Landlord and each Leasehold Mortgagee.
Appears in 1 contract
