HomeMy WebLinkAboutC.054.93011_0452 (2)Damage or Destruction. (a) The County shall notify the Lender immediately in the event (i) of
any damage to or destruction from fire or other casualty of any portion of the Project or (ii) that
title to or use of all or any portion of the Project shall be lost by reason of a defect in title thereto
or (iii) that a material defect in the construction of the Project becomes apparent, if the County
determines in good faith that such damage, destruction or loss will cost more than $50,000 to
repair, replace and restore.
(b) If any portion of the Project is damaged or destroyed or title is defective as
provided herein, to an extent that the County determines in good faith that the cost of repairing,
replacing and restoring such damage, destruction or title defection will exceed $50,000, then the
County shall deposit the Net Proceeds with the Lender for credit against the Advance and shall,
within 90 days after the date such damage or destruction occurs, elect one of the following two
options by giving notice of such election to the Lender, and the Lender shall disburse such Net
Proceeds in accordance with the option so elected:
Option A — Repair and Restoration. The County may elect to repair, reconstruct and restore that
portion of the Project so lost, damaged or destroyed. If the County elects this Option A, then the
County shall proceed forthwith to repair, reconstruct and restore the applicable portion of the
Project to substantially the same condition as had existed prior to the event causing such damage
or destruction, with such alterations and additions as the County may determine to be necessary
or desirable and as will not impair the capacity or character of the applicable portion of the
Project for the purposes for which it had been used prior to such damage or destruction or is
intended to be used. So long as no Event of Default has occurred and is continuing under this
Agreement, the Lender, upon receipt of a request made by the County, shall apply so much as
may be necessary of such Net Proceeds to payment of the cost of such repair, reconstruction and
restoration, either on completion thereof or as the work progresses. Any such request may
provide for Net Proceeds to be paid directly to third -party vendors or to be paid to the County for
reimbursement of costs incurred in such repair, replacement or restoration. If such Net Proceeds
are not sufficient to pay in full the cost of such repair, replacement and restoration, the County
shall, subject to Section 4.5, pay so much of the cost thereof as may be in excess of such Net
Proceeds. The County shall not by reason of the payment of such excess cost be entitled to any
(A) reimbursement from the Lender, or (B) abatement or diminution of the Installment
Payments.
Option B — Prepayment of Installment Payments. The County may elect to have the Net
Proceeds of insurance payable as a result of such loss, damage or destruction, together with other
monies provided by the County, applied to the prepayment of Installment Payments in
accordance with Section 4.4. Notwithstanding anything to the contrary, in the event that the
County elects to make partial prepayment under this Option B, the County shall first provide to
the Lender a certificate signed by the Manager to the effect that (i) the Project has been restored
to its condition prior to the damage, or (ii) such damage will not impair the County's use of the
Project for its intended purposes.
(c) If the County determines in good faith that such cost will not exceed $50,000, the
County shall (1) retain the Net Proceeds with respect to such damage or destruction, (2)
forthwith repair, reconstruct and restore the Project so damaged or destroyed to substantially the
same condition as it had existed prior to the event causing such damage or destruction, and (3)
apply Net Proceeds retained by it to the payment or reimbursement of the costs of such repair,
replacement and restoration. If such Net Proceeds are not sufficient to pay in full the cost of
such repair, replacement and restoration, the County shall, subject to Section 4.5, pay so much
thereof as is in excess of such Net Proceeds.
Condemnation Loss of Title. (a) In the case of a taking of all or any part of the Project or any
right therein under the exercise of the power of eminent domain or any loss of all or any part of
the Project because of loss of title thereto, or the commencement of any proceedings or
negotiations which might result in such a taking or loss, the party upon whom notice of such
taking is served or with whom such proceedings or negotiations are commenced or who learns of
a loss of title shall give prompt notice to the other. Each such notice shall describe generally the
nature and extent of such condemnation, taking, loss, proceedings or negotiations. All
obligations of the County under this Agreement (except obligations to make Installment
Payments when due) shall terminate as to the portion of the Project as to which there is a loss of
title or which is condemned or taken when such loss of title is finally adjudicated or when title
thereto vests in the party condemning or taking the same, as the case may be (hereinafter referred
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