Common use of Use of Insurance Proceeds Clause in Contracts

Use of Insurance Proceeds. (a) In connection with the repair or restoration of the Collateral pursuant to Section 5.1 hereof, so long as there is no Event of Default which has occurred and is continuing, any Net Proceeds of Required Property Insurance Coverage shall be paid to the Company for application of as much of such Net Proceeds as may be necessary for such repair and restoration. If an Event of Default has occurred and is continuing, such Net Proceeds shall be paid to and held by, or at the direction of, the Director in a separate account, for application as the Director determines either (i) as may be necessary of such Net Proceeds to the payment of the costs of repair or restoration, either on completion thereof or as the work progresses or (ii) to the payment of amounts owing by the Company under the Loan Documents. In the event that the Net Proceeds from the damage or destruction of any material portion of the Collateral are insufficient to pay in full the costs of such repair or restoration, the Company shall complete such repair or restoration and shall provide for the payment of the costs of such completion. The Director may, prior to making payment from such account, require the Company to provide evidence that, or deposit with the Director moneys to be placed in such account so that, there will be sufficient moneys available for such repair and restoration. Any balance of the Net Proceeds held by the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net Proceeds. (b) If, in lieu of repair or restoration, the Company has exercised the Company's option to prepay the entire unpaid principal balance of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepayment. (c) Within ninety (90) days from the date of any damage to or destruction of the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occurs, the Company shall determine and notify the Director in writing of which of the ways specified in this Section such Net Proceeds shall be applied. In the event that the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined by the Director, in the Director's sole discretion.

Use of Insurance Proceeds. Mortgagee shall make the net insurance proceeds received by it, which amount shall be net of any amount payable pursuant to the Senior Mortgage (as that term is hereinafter defined) (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; provided that subparagraphs (b) through (f) shall apply only if the net insurance proceeds are $100,000 or more: (a) In connection If the net insurance proceeds are less than $100,000, the Mortgagee shall pay the net proceeds to the Mortgagor. The Mortgagor shall proceed promptly to replace, repair, rebuild and restore the Mortgaged Property to substantially the same condition as existed before the taking or event causing the damage or destruction, with such changes, alterations and modifications (including substitution or addition of other property) as may be desired by the repair Mortgagor and will be suitable for continued operation of the Mortgagor for the business purposes of the Mortgagor, and the Mortgagor will pay all costs thereof. If the net proceeds are not sufficient to pay such costs in full, the Mortgagor shall pay that portion of the cost in excess of the amount of net proceeds and shall complete such repair, replacement, rebuilding or restoration of as provided in the Collateral pursuant to Section 5.1 hereof, so long as there is Indenture; (b) There shall be no Event of Default which has occurred and is continuingin existence at the time of any disbursement of the insurance proceeds, any Net Proceeds of Required Property Insurance Coverage shall be paid to the Company for application of as much of unless such Net Proceeds as may be necessary for such repair and restoration. If an Event of Default has occurred and is continuingwould be cured upon the application of such net proceeds; provided, such Net Proceeds however, this condition precedent shall be paid waived if Mortgagee is otherwise directed by the owners of a majority in aggregate principal amount of the Bonds outstanding; (c) Mortgagee shall have determined, based upon a certificate of an Independent Engineer (as defined in the Indenture), that the cost of restoration, repair and rebuilding is and will be equal to or less than the amount of insurance proceeds and held byother funds deposited by Mortgagor with Mortgagee; (d) Mortgagee shall have determined, or at based upon a certificate of an Independent Engineer, that the direction ofrestoration, repair and rebuilding can be completed in accordance with plans and specifications approved by Independent Engineer (such approval not to be unreasonably withheld), in accordance with codes and ordinances; (e) All funds shall be disbursed as provided in the Director in a separate accountIndenture; and (f) If any of these conditions shall not be satisfied, for application except as otherwise provided above, then Mortgagee shall apply the Director determines either (i) as may be necessary of such Net Proceeds insurance proceeds first to the payment Rebate Fund (as defined in the Indenture) in accordance with the Indenture then to prepay the Loan Obligations by transferring the moneys on deposit in the Condemnation and Awards Fund to the Redemption Account established pursuant to the Indenture. If any insurance proceeds shall remain after completion of the costs of repair or restoration, either on completion thereof or as repair and rebuilding of the work progresses or (ii) to Mortgaged Property, they shall be applied in accordance with the payment of amounts owing by the Company under the Loan DocumentsIndenture. In the event that such insurance proceeds are made available for restoration and repair by the Net Proceeds from Mortgagee, Mortgagor shall pay all costs incurred by Mortgagee in connection with the damage or destruction of any material portion of the Collateral are insufficient to pay in full the costs application of such repair insurance proceeds (including but not limited to reasonable costs incurred by Mortgagee, and a title company or restoration, agent approved by Mortgagee in overseeing the Company shall complete such repair or restoration and shall provide for the payment of the costs disbursement of such completion. The Director mayinsurance proceeds), prior to making payment from such account, require and the Company to provide evidence that, Improvements shall be restored or deposit with the Director moneys rebuilt so as to be placed in such account so that, there will be sufficient moneys available for such repair of at least equal value and restoration. Any balance of substantially the Net Proceeds held by the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net Proceeds. (b) If, in lieu of repair or restoration, the Company has exercised the Company's option to prepay the entire unpaid principal balance of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director same character as prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepaymentdamage or destruction. (c) Within ninety (90) days from the date of any damage to or destruction of the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occurs, the Company shall determine and notify the Director in writing of which of the ways specified in this Section such Net Proceeds shall be applied. In the event that the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined by the Director, in the Director's sole discretion.

Use of Insurance Proceeds. (a1) In connection with Unless otherwise specified in this Section 6.5, all proceeds of insurance required to be maintained by the repair or restoration Obligors under the terms of the Collateral pursuant to Section 5.1 hereof, so long as there is no Event of Default which has occurred and is continuing, any Net Proceeds of Required Property Insurance Coverage this Agreement shall be paid to the Company for application Agent to be applied by it on account of as much the Obligations. (2) Proceeds of such Net liability insurance shall be paid to the Person to whom the affected Obligor is liable. Proceeds as of insurance covering loss of or damage to Property in an amount of less than $3,000,000 per claim may be necessary for such repair and restoration. If an Event of paid by the insurer directly to the affected Obligor unless, if a Default has occurred and is continuing, such Net Proceeds the Agent requires that payment be made to the Agent to be applied by it on account of the Obligations. Subject to the rights of any holder of a Permitted Lien that has priority over the Security, proceeds paid to an Obligor shall be used to repair or replace the property for which the insurance proceeds are payable or, if the Obligor determines that is not prudent, shall be paid by the affected Obligor to the Agent to reduce the principal amount of the Obligations. (3) Subject to the rights of any holder of a Permitted Lien that has priority over the Security, proceeds of insurance covering loss of or damage to Property in an amount of $3,000,000 per claim or more shall be paid to the Agent and held by, or at shall be disbursed by the direction of, the Director in a separate account, for application as the Director determines either (i) as may be necessary of such Net Proceeds Agent to the payment affected Obligor on conditions appropriate to a construction credit, to fund the repair or replacement of the costs of repair or restorationProperty for which the insurance proceeds are payable, either on completion thereof or as the work progresses or provided that: (iia) no Default (including one relating to the payment of amounts owing by the Company under the Loan Documents. In the event that the Net Proceeds from the damage or destruction of any material portion of the Collateral are insufficient to pay in full the costs of such repair or restoration, the Company shall complete such repair or restoration Material Adverse Effect) has occurred and shall provide for the payment of the costs of such completion. The Director may, prior to making payment from such account, require the Company to provide evidence that, or deposit with the Director moneys to be placed in such account so that, there will be sufficient moneys available for such repair and restoration. Any balance of the Net Proceeds held by the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net Proceeds.is continuing; and (b) Ifthe Required Lenders are satisfied, in lieu acting reasonably, that the proceeds of the insurance together with other resources available to the affected Obligor (the use of which would not contravene this Agreement) are sufficient to fully repair or restoration, replace the Company has exercised property for which the Company's option to prepay insurance proceeds are payable within the entire unpaid principal balance remaining term of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepayment. (c) Within ninety (90) then-outstanding Credits or within 365 days from the date of any damage to or destruction receipt of the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occursis less. (4) The proceeds of business interruption insurance shall be paid to the Agent to be applied by it on account of the Obligations as they fall due from time to time (including as a result of any demand for payment of the Obligations) and, to the extent of any surplus, shall be used to repay the Revolving Credit, but not to reduce the Commitments under under that Credit. If the Revolving Credit is repaid in full at any time, the Company shall determine and notify proceeds may be used to carry on the Director in writing of which business of the ways specified in this Section such Net Proceeds shall be applied. In Obligors as long as the event Required Lenders are satisfied, acting reasonably, that adequate provision has been made for payment of the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined Obligations. (5) All insurance proceeds held by the DirectorAgent shall, unless and until the proceeds are applied to payment of the Obligations or released to the affected Obligor, be held as part of the Security. The Agent shall place all proceeds in an interest-bearing account with the Director's sole discretioninterest accruing to the benefit of the affected Obligor.

Use of Insurance Proceeds. (a) In connection with the repair or restoration of the Collateral pursuant to Section 5.1 hereof, so long as there is no Event of Default which has occurred and is continuing, any Net Proceeds of Required Property Insurance Coverage not in excess of Fifty Thousand Dollars ($50,000) shall be paid to the Company for application of as much of such Net Proceeds as may be necessary for such repair and restoration. If an Event such Net Proceeds exceed Fifty Thousand Dollars ($50,000), all of Default has occurred and is continuing, such Net Proceeds shall be paid to and held by, or at the direction of, the Director in a separate account, for application of as the Director determines either (i) much as may be necessary of such Net Proceeds to the payment of the costs of repair repair, rebuilding or restoration, either on completion thereof or as the work progresses or (ii) to the payment of amounts owing progresses, as directed by the Company under the Loan DocumentsCompany. In the event that the such Net Proceeds from the damage or destruction of any material portion of the Collateral are insufficient to pay in full fun the costs of such repair or restoration, the Company shall will complete such repair or restoration and shall will provide for the payment of the costs of such completion. The Director may, prior to making payment from such account, require the Company to provide evidence that, or deposit with the Director moneys to be placed in such account so that, there will be sufficient moneys available for such repair and restoration. The Director shall not be obligated to make or authorize any payment from such account if there exists an Event of Default hereunder. Any balance of the such Net Proceeds held by the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net Proceeds. (b) If, in lieu of repair or restoration, the Company has exercised the Company's its option to prepay the entire unpaid principal balance of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges fees, charges, etc. due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepayment. (c) Within ninety (90) days from the date of any damage to or destruction of to the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occurs, the Company shall determine and notify the Director in writing of which of the ways specified in this Section such Net Proceeds Proceeds, together with the investment income therefrom, shall be applied. In the event that the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined by the Director, in the Director's sole discretion.

Use of Insurance Proceeds. The City covenants that, except as hereinafter provided in this Section, immediately after any loss or damage to any portion of the Telecom System resulting from any cause, whether or not such loss or damage shall be covered by insurance, it will proceed with, and diligently prosecute, the repairing, replacing or reconstructing (either in accordance with the original or a different design) of the damaged or destroyed property, unless it shall determine that the repair, replacement or reconstruction of such property is not essential to the efficient operation of the Telecom System; provided however, that should the amount of such loss or damage exceeds ten percent (10%) of the book value as reported in the most recent financial statements of the Telecom System, the City shall receive the approval of the Lessor that such repair, replacement or reconstruction is not essential to the efficient operating of the Telecom System. Except as hereinafter provided the proceeds of all casualty insurance referred to in this Section shall be available for and shall, to the extent necessary, be applied to the repair, replacement or reconstruction of the damaged or destroyed property or the acquisition of new improvements, and shall be paid out to the City under the Deposit Trust Agreement for such purposes. If such proceeds are more than sufficient for such purpose, the balance remaining shall be devoted to the credit of the Reserve Fund (as defined in the Deposit Trust Agreement). If such proceeds shall be insufficient for such purpose, the deficiency may be supplied out of any moneys in the Reserve Fund. The City shall furnish to the Lessor certificates or other evidence of such insurance coverage throughout the Lease Term. All such casualty and liability insurance shall be with an insurer or insurers that are reasonably satisfactory to the Lessor, shall name the Lessor and it assigns as loss payees and additional insured and shall contain a provision to the effect that such insurance shall not be canceled or modified materially without first giving written notice thereof to the Lessor at least 10 days in advance of such cancellation or modification. Further, all such casualty insurance shall contain a provision making any losses payable to City and the Lessor as their respective interests may appear. protect, hold harmless, save and keep harmless the Lessor from and against any and all liabilities, obligations, losses, claims and damages whatsoever, regardless of cause thereof, and all expenses in connection therewith (including, without limitation, counsel fees and expenses, penalties connected therewith imposed on interest received) arising out of or as a result of (a) In the entering into of this Lease, (b) the ownership of any item of the Equipment, or (c) any accident in connection with the repair operation, use, condition, possession, storage or restoration return of any item of the Collateral pursuant Leased Assets resulting in damage to Section 5.1 hereof, so long property or injury to or death to any person. In no event will any City or State taxpayer revenues other than those identified as there is no Event of Default which has occurred and is continuing, any Net Proceeds of Required Property Insurance Coverage shall Leased Assets or Revenues be paid to available for indemnification. To the Company for application of as much of such Net Proceeds as may be necessary for such repair and restoration. If an Event of Default has occurred and is continuing, such Net Proceeds shall be paid to and held by, or at the direction ofextent permitted by law, the Director City shall indemnify, protect, hold harmless, save and keep harmless the Lessor from and against any and all liabilities, obligations, losses, claims and damages whatsoever, regardless of cause thereof, and all expenses in a separate account, for application as the Director determines either (i) as may be necessary of such Net Proceeds to the payment of the costs of repair or restoration, either on completion thereof or as the work progresses or (ii) to the payment of amounts owing by the Company under the Loan Documents. In the event that the Net Proceeds connection therewith arising from the damage or destruction of any material portion of the Collateral are insufficient to pay in full the costs of such repair or restoration, the Company shall complete such repair or restoration and shall provide for the payment of the costs of such completion. The Director may, prior to making payment from such account, require the Company to provide evidence that, or deposit with the Director moneys to be placed in such account so that, there will be sufficient moneys available for such repair and restoration. Any balance of the Net Proceeds held by the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net ProceedsPending Litigation. (b) If, in lieu of repair or restoration, the Company has exercised the Company's option to prepay the entire unpaid principal balance of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepayment. (c) Within ninety (90) days from the date of any damage to or destruction of the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occurs, the Company shall determine and notify the Director in writing of which of the ways specified in this Section such Net Proceeds shall be applied. In the event that the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined by the Director, in the Director's sole discretion.

Use of Insurance Proceeds. (a) In connection with the repair or restoration of the Collateral pursuant to Section 5.1 hereof, so long as there is no Event of Default which has occurred and is continuing, any Net Proceeds of Required Property Insurance Coverage not in excess of One Hundred Thousand Dollars ($100,000) shall be paid to the Company for application of as much of such Net Proceeds as may be necessary for such repair and restoration. If an Event such Net Proceeds exceed One Hundred Thousand Dollars ($100,000), all of Default has occurred and is continuing, such Net Proceeds shall be paid to and held by, or at the direction of, the Director (name of local jurisdiction) in a separate account, for application of as the Director determines either (i) much as may be necessary of such Net Proceeds to the payment of the costs of repair or restoration, either on completion thereof or as the work progresses or (ii) to the payment of amounts owing progresses, as directed by the Company under the Loan DocumentsCompany. In the event that the such Net Proceeds from the damage or destruction of any material portion of the Collateral are insufficient to pay in full the costs of such repair or restoration, the Company shall complete such repair or restoration and shall provide for the payment of the costs of such completion. The Director (name of local jurisdiction) may, prior to making payment from such account, require the Company to provide evidence that, or deposit with the Director (name of local jurisdiction) moneys to be placed in such account so that, there will be sufficient moneys available for such repair and restoration. The (name of local jurisdiction) shall not be obligated to make or authorize any payment from such account if there exists an Event of Default hereunder. Any balance of the Net Proceeds held by the Director (name of local jurisdiction) remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Company. Notwithstanding the foregoing, nothing contained herein shall cause the Director (name of local jurisdiction) to be deemed a trustee of the Net Proceeds or any other moneys deposited with the Net Proceeds or to be obligated to allow or pay any amounts in excess of the Net Proceeds and any other moneys deposited with the Net Proceeds. (b) . If, in lieu of repair or restoration, the Company has exercised the Company's option to prepay the entire unpaid principal balance of the Note, plus interest accrued to the date thereof, any monthly service fees then due and unpaid and any other fees and charges due with respect to the Loan Documents, an amount equal to any Net Proceeds received by the Director (name of local jurisdiction) prior to such prepayment shall be credited against the amount payable by the Company under the Note to effect such prepayment. (c) . Within ninety (90) days from the date of any damage to or destruction of the Collateral, or within thirty (30) days of the receipt of any insurance proceeds, whichever first occurs, the Company shall determine in writing, and notify the Director in writing (name of local jurisdiction) of, which of the ways specified in this Section such Net Proceeds shall be applied. In the event that the Company fails to make such a determination or to give such notice within the applicable period, such Net Proceeds shall be applied as determined by the Director(name of local jurisdiction), in the Director(name of local jurisdiction)'s sole discretion.