Common use of Damage Destruction and Condemnation Use of Net Proceeds Clause in Contracts

Damage Destruction and Condemnation Use of Net Proceeds. The Corporation will provide a complete written report to the Lender immediately upon any loss, theft, damage, destruction or taking under condemnation or under the threat of condemnation of the Project or any portion thereof (the “Damaged Project Portion”) to the extent that any of the foregoing is valued more than $50,000 per event. If all or any portion of the Project is so lost, stolen, destroyed, damaged or taken, the Corporation will as soon as practicable either (a) repair, restore, reconstruct, replace or improve the Facilities at the Corporation’s sole cost and expense to the same or an improved condition and value and to accomplish at least the same function as existed immediately before the loss, theft, damage, destruction or taking or (b) pay the applicable Prepayment Amount for the Loan. If, within forty-five (45) days of the loss occurrence, (1) the Corporation fails to notify the Lender; (2) the Corporation and the Lender fail to execute an amendment to this Agreement to delete the Damaged Project Portion and add the replacement property to the description of the Project or (3) the Corporation fails to pay the Prepayment Amount (if any), then the Lender may, at its sole discretion, declare the Prepayment Amount to be immediately due and payable, and the Corporation is required to pay the same. Provided that no Event of Default has occurred that remains uncured, the Net Proceeds of insurance or any taking shall be made available by the Lender to be applied to discharge the Corporation’s obligation under this Article VIII, and after so applied any excess shall be paid directly to the Corporation. If the Corporation elects to repair, restore, reconstruct, replace or improve the Project and if the Corporation or the Lender so requests by a notice in writing to the other parties to this Agreement, the Net Proceeds shall be deposited with the Lender in escrow pending disbursement for that purpose. If the Net Proceeds are insufficient to discharge

Damage Destruction and Condemnation Use of Net Proceeds. The Corporation will provide a complete written report to the Lender immediately upon any loss, theft, damage, destruction or taking under condemnation or under the threat of condemnation of the Project or any portion thereof (the “Damaged Project Portion”) to the extent that any of the foregoing is valued more than $50,000 $ per event. If all or any portion of the Project in an amount in excess of $ is so lost, stolen, destroyed, damaged or taken, the Corporation will as soon as practicable either (a) repair, restore, reconstruct, replace or improve the Facilities Project at the Corporation’s sole cost and expense to the same or an improved condition and value and to accomplish at least the same function as existed immediately before the loss, theft, damage, destruction or taking or (b) if such damaged, destroyed or condemned portion of the Project financed with proceeds of the Bonds, pay the applicable Prepayment Amount for the LoanLoan attributable to the reasonable value of the property damaged, destroyed or condemned. If, within forty-five (45) 45 days of the loss occurrence, (1x) the Corporation fails to notify the Lender; or (2y) the Corporation and the Lender fail to execute an amendment to this Agreement to delete the Damaged Project Portion and add the replacement property to the description of if the Project or (3) is not restored and the Corporation fails to pay the Prepayment Amount (if any)Amount, then the Lender may, at its sole discretion, declare the Prepayment Amount attributable to the reasonable value of the property damaged, destroyed or condemned to be immediately due and payable, and the Corporation is required to pay the same. Provided that no Event of Default has occurred that remains uncured, the Net Proceeds of insurance or any taking shall be made available by the Lender to be applied to discharge the Corporation’s obligation under this Article VIII, and after so applied any excess shall be paid directly to the Corporation. If any such damage, destruction or condemnation relates to a portion of the Project in excess of $ , and the Corporation elects to repair, restore, reconstruct, replace or improve the Project and if the Corporation or the Lender so requests by a notice in writing to the other parties to this Loan Agreement, the Net Proceeds shall be deposited with the Lender in escrow pending disbursement for that purposepurpose under an escrow agreement. If the Net Proceeds are insufficient to dischargedischarge the Corporation’s obligations under this Article VIII, the Corporation shall use its own funds to discharge its obligations under this Article VIII.