200011180 - Laserfiche WebLink

Browse

20mino the collection or application of such proceeds, shall be reimbursed to American Family first out of the condemnation proceeds. Any condemnation proceeds remaining after such reimbursement to American Family shall be applied by American Family to reduction of the Indebtedness or to Restoration in accordance with the provisions of Section 3.4. No prepayment premium will be charged for any application of proceeds from a condemnation award to the Indebtedness. SECTION 3.4 DISBURSEMENT OF INSURANCE AND CONDEMNATION PROCEEDS. A condemnation award or Insurance Proceeds not applied to the Indebtedness pursuant to Section 3.2 or Section 3.3 shall be used to repair damage to the Premises under the terms and conditions set forth below: (a) Evidence is submitted to American Family showing that: (i) Restoration is feasible; (ii) the Premises can continue to be operated by Borrower for the same use and such use will continue to conform to applicable zoning regulations; (iii) the cost of Restoration will be completely funded from Restoration Funds, provided such Restoration Funds are deemed by American Family, in its reasonable business judgment, to be adequate for the cost of the Restoration; (iv) the Appraised Value of the Premises after the Restoration shall be equal to or greater than the Appraised Value of the Premises as of the date of the appraisal provided to American Family by Borrower as a condition of funding the Loan; and (v) to Borrower's Knowledge no environmental hazards respecting the Premises would exist after Restoration; and (b) Adequate provision is made to have such Restoration Funds disbursed in accordance with this Section; and (c) No Event of Default exists under the terms of any of the Loan Documents; and (d) No default has occurred under any Lease, and all Leases, including related guaranties, if any, were in good standing immediately before the damage or destruction of the Premises and will remain in full force and effect and good standing after Restoration. If American Family reasonably determines that a proposed Restoration fails to meet any of the terms and conditions above, then American Family shall have the option to apply the entire proceeds of the condemnation award or Insurance Proceeds in reduction of the Indebtedness. If the proposed Restoration meets each of the conditions detailed above, then American Family shall allow the entire Insurance Proceeds or condemnation award, less any expense incurred by American Family in the adjustment, collection, and application of such proceeds, to be used for the Restoration. If the Restoration Funds are to be used for Restoration then, prior to the commencement of any portion of the Work other than temporary work needed to protect the damaged property, Borrower shall deliver to American Family: