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1902. Agcncy/City Attorney May Modify. The Agency/City Attorney may modify the <br />type and amounts of insurance (inchiding reasonable increases in policy limits) required pursuant to <br />this Section. <br />1903. Claims and Proceedings. Developer shall give Agency/City immediate notice of <br />any material oasualty to any portion of the Property, whether or not covered by insurance, and of the <br />initiation or threatened irritiation of any proceeding for the condemnation or other talung for public or <br />quasi-public use of any portion of the Property (collectively, "Condemnation"), and shall provide <br />Agcncy/City with copies of all documents which pertain to any such casualty or Condemnation. <br />Developer shall take all action reasonably required by Agency/Ct~~ah connection therewith to protect <br />the interests of Developer and/or City, and Agency/City shill be entitled (without regard to the <br />adequacy of its security) to participate in any action, olairit; adj~xstmcnt or proceeding and to be <br />represented therein by counsel of its choice. Developer 3ha11 not settle, adjust, or compromise any <br />claim, action, adjustment or proceeding without prior Witten approval„which approval shall not be <br />unreasonably withheld or delayed. <br />1904. Delivery of Proceeds to Agency(City. In the event that :notwithstanding the <br />"lender's loss payable endorsement" requirement~se(`~forth.abpve, the pmee~ds of any casualty <br />insurance policy described herein are paid to Developer, Deueloper shall, subject to any superior <br />rights of the Senior Lender, deliver suah"-pipt+,eeds to the Agency and City immediately upon receipt. <br />1905. Application of Casualty liisuranee'Proeeeds, Any,procccds collected ("Proceeds") <br />under any casualty insuranee;policy described in this Agreement shall. be disbursed to Developer as <br />provided below, but Qtly upon:,fulfillmen't `of ca9Ji of the .following conditions ("Restoration <br />Conditions wrthm niuet 90''~", ys (unless extenc)ed by mutgal agreement of Developer and <br />>) Y ( ) da <br />Agency/City) following'the oecurreflce of the darri~g"'e' for which the Proceeds are eollecYed: <br />,f .> <br />(a) Developei•ahall demonstrate to Agency/City's reasonable satisfaction <br />that the P~ooee'ds (together with atijounts~doposrted bj%Developer pursuant to subparagraph (b)) will <br />be adcquate'fo reparr flie;improvein~nts and to restore the fair market value of the Property, within a <br />time period reasonably determined by<=Agcncy/City,' to at least the value it had immediately prior to <br />sustaining the>-damage. Such demonstrafiop shall include delivery to Agency/City of (i) plans and <br />specifications reasonably satiaf~rckQry to Agency/City, and (ii) a construction contract in form and <br />content, and with a eoniraotor, reasonably satisfactory to Agency/City. <br />(b) To `the extent that the Proceeds are insufficient to accomplish the <br />restoration required abo"ve, t?ev~loper shall deliver to Agency/City funds ("Shortfall Funds") in the <br />amount of such shortfall, wfiG"li frmds shall be assigned to City as security for Developer's obligation <br />hereunder and held and disbursed in the same manlier as the Proceeds. <br />(c) Developer shall execute such documents as City requires to evidence <br />and secure Developer's obligation to use all amounts disbursed for the diligent restoration of the <br />Property. <br />(d) No F.vent of Default shall remain uncured. <br />1906. Method of Disbursement and Undisbmsed Fonds. Any Proceeds and Shortfall <br />Funds to be disbursed to Developer shall be held by Agency/ City and disbursed in accordance with <br />then customary disbursement procedures and related provisions. Any amounts remaining <br />54 <br />