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policy described herein are paid to Grantee, Grantee shall, subject to any superior rights of the Senior Lender, deliver such proceeds to the City immediately upon receipt. 14.14 Application of Casualty Insurance Proceeds. Subject to any superior rights of the Senior Lender, any proceeds collected (the "Proceeds") under any casualty insurance policy described in this Agreement shall be disbursed to Grantee as provided below, but only upon fulfillment of each of the following conditions (the "Restoration Conditions")within ninety (90) days (unless extended by mutual agreement of Grantee and City) following the occurrence of the receipt of the Proceeds: (a) Grantee shall demonstrate to City's reasonable satisfaction that the Proceeds (together with amounts deposited by Grantee pursuant to subparagraph (b)) will be adequate to repair the Improvements and to restore the fair market value of the Property, within a time period reasonably determined by City, to at least the value it had immediately prior to sustaining the damage. Such demonstration shall include delivery to City of: (i)plans and specifications reasonably satisfactory to City; and, (ii) a construction contract in form and content, and with a contractor, reasonably satisfactory to City; (b) To the extent that the Proceeds (together with all undisbursed Grant proceeds and any other financing proceeds available to the Grantee) are insufficient to accomplish the restoration required above, Grantee shall deliver to City funds (the "Shortfall Funds") in the amount of such shortfall, which funds shall be assigned to City as security for Grantee's obligation hereunder and held and disbursed in the same manner as the Proceeds; (c) Grantee shall execute such documents as City reasonably requires to evidence and secure Grantee's obligation to use all amounts disbursed for the diligent restoration of the Property; and, (d) No Event of Default shall remain uncured. 14.15 Method of Disbursement and Undisbursed Funds. Any Proceeds and Shortfall Funds to be disbursed to Grantee shall be held by the Senior Lender if a Senior Loan is outstanding, and disbursed in accordance with the Senior Loan Documents or, if no Senior Loan, then held by the City and disbursed in accordance with the City's then customary disbursement procedures and related provisions. Any amounts remaining undisbursed following completion of such restoration shall be returned to Grantee up to the amount of any Shortfall Funds deposited by Grantee, and any other amounts remaining shall either be paid to Grantee or applied by the Senior Lender, or the City in the absence of a Senior Loan, as the case may be against any obligations that are secured by a lien on the Property, as they elect in their sole and absolute discretion. 14.16 Failure to Satisfy Conditions. In the event that Grantee fails to fulfill the Restoration Conditions within one hundred and eighty (180) days (unless extended pursuant to Section 15.4) following the date Proceeds are received, the Proceeds shall be applied by City against any obligations to City that are secured by a lien on the Property, and the selection of which such obligations to apply the Proceeds against shall be made by City in its sole and absolute discretion.