7.3. SR 07-20-2015 - Laserfiche WebLink

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There is no contract or agreement providing for services to or maintenance of the Mortgaged Property which cannot be cancelled upon 30 days’ or less notice. ARTICLE III CASUALTY; CONDEMNATION Section 3.1 Casualty, Repair, Proof of Loss. If any portion of the Mortgaged Property shall be damaged or destroyed by any cause (a “Casualty”), Developer shall: (a) give immediate notice to the City; and (b) promptly commence and diligently pursue to completion (in accordance with plans and specifications approved by City) the restoration, repair and rebuilding of the Mortgaged Property as nearly as possible to its value, condition and character immediately prior to the Casualty; and (c) if the Casualty is covered by insurance, immediately make proof of loss and collect all insurance proceeds, all such proceeds to be payable to City or as City shall direct. If an Event of Default shall be in existence, or if Developer shall fail to provide notice to City of filing proof of loss, or if Developer shall not be diligently proceeding, in City’s reasonable opinion, to collect such insurance proceeds, then City may, but is not obligated to, make proof of loss, and is authorized, but is not obligated, to settle any claim with respect thereto, and to collect the proceeds thereof. Developer shall not accept any settlement of an insurance claim, the result of which shall be a payment which is $10,000 or more less than the full amount of the claim, without the prior written consent of City. Section 3.2 Use of Insurance Proceeds. City shall make the net insurance proceeds received by it (after reimbursement of City’s out-of pocket costs of collecting and disbursing the same) available to Developer to pay the cost of restoration, repair and rebuilding of the Mortgaged Property, subject to the following conditions: (a) There shall be no Event of Default in existence at the time of any disbursement of the insurance proceeds. (b) City shall have determined, in its reasonable discretion, that the cost of restoration, repair and rebuilding is and will be equal to or less than the amount of insurance proceeds and other funds deposited by Developer with City. (c) City shall have determined, in its reasonable discretion, that the restoration, repair and rebuilding can be completed in accordance with plans and specifications approved by City (such approval not to be unreasonably withheld), in accordance with codes and ordinances and in accordance with the terms, and within the time requirements in order to prevent termination, of any Lease, and in any event not less than six (6) months prior to the Maturity Date. (d) All funds shall be disbursed, at City’s option, in accordance with City’s customary disbursement procedures for construction loans. C-7 455958v10 SJS EL185-31