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Recording Requested by Stewart Title-Lease Agreement- City of Buena Park
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Recording Requested by Stewart Title-Lease Agreement- City of Buena Park
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ARTICLE VI <br /> DAMAGE, DESTRUCTION AND EMINENT DOMAIN; <br /> ABATEMENT OF LEASE PAYMENTS <br /> Section 6.1. Application of Net Proceeds. <br /> (a)From Insurance Award. The Net Proceeds of any insurance award resulting from any <br /> damage to or destruction of the Leased Premises by fire or other casualty shall be paid by the <br /> City to the Trustee and shall be deposited in the Insurance and Condemnation Fund by the <br /> Trustee and applied as set forth in Section 5.07 of the Indenture. <br /> (b)From Eminent Domain Award. If the Leased Premises or any portion thereof shall be <br /> taken permanently or temporarily under the power of eminent domain or sold to a government <br /> threatening to exercise the power of eminent domain, the Net Proceeds resulting therefrom shall <br /> be deposited in the Insurance and Condemnation Fund and applied as set forth in Section 5.07 <br /> of the Indenture. <br /> (c) From Title Insurance Award. The Net Proceeds of any title insurance award shall be <br /> paid to the Trustee, deposited in the Insurance and Condemnation Fund and applied as set <br /> forth in Section 5.07 of the Indenture. <br /> Section 6.2. Abatement of Lease Payments. <br /> (a)Abatement Due to Damage or Destruction. The Lease Payments shall be abated during <br /> any period in which by reason of damage to or destruction of the Leased Premises (other than <br /> by eminent domain which is hereinafter provided for)which causes substantial interference with <br /> the use and occupancy by the City of the Leased Premises or any portion thereof. The amount <br /> of such abatement shall be an amount agreed upon by the City and the Authority, upon <br /> consultation with the Municipal Bond Insurer,such that the resulting Lease Payments represent <br /> fair consideration for the use and occupancy of the portions of the Leased Premises not <br /> damaged or destroyed. Such abatement shall continue for the period commencing with such <br /> damage or destruction and ending with the substantial completion of the work of repair or <br /> reconstruction. In the event of any such damage or destruction, this Lease Agreement shall <br /> continue in full force and effect and the City waives any right to terminate this Lease Agreement <br /> by virtue of any such damage and destruction. There shall be no abatement of the Lease <br /> Payments to the extent that moneys derived from any person as a result of such damage or <br /> destruction are available to pay the amount which would otherwise be abated or if there is any <br /> money available in the Bond Fund or the Reserve Fund to pay the amount which would <br /> otherwise be abated. <br /> (b) Abatement Due to Eminent Domain. If all of the Leased Premises shall be taken <br /> permanently under the power of eminent domain or sold to a government threatening to exercise <br /> the power of eminent domain, the Term of this Lease Agreement shall cease with respect to the <br /> Leased Premises as of the day possession shall be so taken. If less than all of the Leased <br /> Premises shall be taken permanently, or if all of the Leased Premises or any part thereof shall be <br /> taken temporarily under the power of eminent domain, (a) this Lease Agreement shall continue <br /> in full force and effect and shall not be terminated by virtue of such taking and the parties <br /> waive the benefit of any law to the contrary, and (b) there shall be a partial abatement of Lease <br /> Payments in an amount to be agreed upon by the City and the Authority such that the resulting <br /> Lease Payments for the Leased Premises represent fair consideration for the use and occupancy <br /> of the remaining usable portion of the Leased Premises. <br /> -16- <br />
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