4.2. SR 04-06-1998 - Laserfiche WebLink

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purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be remitted to the Developer. In the event of substantial or total destruction of the Minimum Improvements, the Developer may elect to not repair or reconstruct the Minimum Improvements, in which case the Authority may, as its sole remedy, terminate its obligations under the Note. (e) The Authority agrees that its rights under this Section relative to the application of Net Proceeds of insurance provided under Section 5.1(a)(i) and (b)(i), and as provided in Section 5.1 (d),m shall be subordinate to the rights of a Holder of a Mortgage approved by the Authority; provided that the Authority's right to terminate the Note for a violation of the Developer's obligations under this Section shall not be subordinated to the rights of a Holder. Section 5.2 Condemnation. In the event that title to and possession of the Minimum Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person (except the Authority) prior to the Maturity Date, the Developer shall, with reasonable promptness after such taking, notify the Authority as to the nature and extent of such taking. Upon receipt of any Condemnation Award, the Developer shall elect to either: (a) use the entire Condemnation Award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum Improvements have been taken, then to reconstruct such part) within the Project Area; or (b) retain the Condemnation Award in the event that a substantial portion of the Redevelopment Property and Minimum Improvements have been taken. In that event, the Authority's obligations under this Agreement and the Note shall terminate as of the date of the taking. ARTICLE VI. Taxes; Tax Increment Section 6.1 Real Property Taxes. The Developer shall pay or cause to be paid when due and prior to the imposition of penalty, all real property taxes and installments of special assessments payable with respect to the Development Property. Section 6.2 Tax Increment. Subject to the limitations contained in the Note, the Authority hereby pledges to the payment of the Note a portion of the Tax Increment generated from the Development Property and the completed Minimum Improvements. The Developer acknowledges that the Authority has made no warranties or representations to the Developer as to the amounts of Tax Increment that will be generated, or that the "Available Tax Increment" as defined in the Note will be sufficient to pay the Note in whole or in part. Nor is the Authority warranting that it will have throughout the term of this Agreement and the Note the continuing legal ability under State law to apply Tax Increment to the payment of the Note, which continued legal ability is a condition precedent to the Authority's obligations under the Note. To the extent that in any year or years the Authority receives Tax Increment in excess of the amounts necessary to pay amounts due under the Note, the Authority shall be free to use such excess Tax Increment for any purpose for which such BeckP 548664.1 12