11-25-1991 HRA Meeting - Laserfiche WebLink

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Y- f:' B '■i •V ARTICLE VIII DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS ggCtion 8.1. rnrr i nn and OQndt»mnar i nn . If (1) the Project or any portion thereof is destroyed or is damaged by fire or other casualty or (ii) title to or the temporary use of the Project or any part thereof, or the interest of City or Authority in the Project or Land or any part thereof, shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority. City shall have the rights specified in this Section with respect to the Net Proceeds of any insurance or condemnation award. City shall either apply such Net Proceeds to the prong>t repair, restoration, modification or improvement of the Project and shall be obligated to continue to pay the Lease'-Purchase Payments or City shall pay the entire Purchase Price of the Project in accordance with Section 10.1, or defease this Lease pursuant to Section 10.3 hereof, in which event the Net Proceeds may be used for such purpose. Section 8.2. Insufficiency of Net Proceeds. If the City elects to repair and restore the Project and the Net Proceeds are insufficient to pay in full the cost of any repair and restoration. City shall compxete the work and pay any cost in excess of the amount of the Net Proceeds, and City agrees that if by reason of any such insufficiency of the Net Proceeds City shall make any payments pursuant to the provisions of vnis Section 8.2, City shall not be entitled to any reimbursement therefor from Authority nor shall City be entitled to any diminution of the Lease-Purchase Payments due with respect to the Project. Section 8.3. Cooperation of Authority. Authority shall cooperate fully with the City at the expense of City in filing any proof of loss with respect to any insurance policy covering the casualties described in Section 8.1 hereof and in the prosecution or defense of any prospective or pending condemnation proceeding with respect to the Project or any part there of and will, to the extent it may lawfully do so, permit City to litigate in any proceeding resulting therefrom in the name of and on behalf of Authority. In no event will Authority voluntarily settle, or consent to the settlement of, any proceeding arising out of any insurance claim or any prospective or pending condemnation proceeding with respect to the Project or any part thereof without the written consent of City. Section 8.4. Dgs^rurt:iQn or pnnrtAmnar i on of Otih^r Property Qwn^d by City. City shall be entitled to c.he Net Proceeds of any insurance claim or condemnation award or portion thereof made for destruction of, damage to or taking of its property not included in the Project. 8-1