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19.2 City Attorney May Modify. The City Attorney may modify the type and <br />amounts of insurance required pursuant to this Section. <br />19.3 Claims and Proceedings. Developer shall give City immediate notice <br />of any material casualty to any portion of the Property, whether or not covered by insurance, and <br />of the initiation or threatened initiation of any proceeding for the condemnation or other taking <br />for public or quasi-public use of any portion of the Property (collectively, "Condemnation"), and <br />shall provide City with copies of all documents which pertain to any such casualty or <br />Condemnation. Developer shall take all action reasonably required by City in connection <br />therewith to protect the interests of Developer and/or City, and City shall be entitled (without <br />regard to the adequacy of its security) to participate in any action, claim, adjustment or <br />proceeding and to be represented therein by counsel of its choice. Developer shall not settle, <br />adjust, or compromise any claim, action, adjustment or proceeding without prior written <br />approval, which approval shall not be unreasonably withheld or delayed. <br />19.4 Delivery of Proceeds to City. In the event that, notwithstanding the <br />"lender's loss payable endorsement" requirement set forth above, the proceeds of any casualty <br />insurance policy described herein are paid to Developer, Developer shall, subject to any superior <br />rights of the Senior Lender, deliver such proceeds to the City immediately upon receipt. <br />19.5 Application of Casualty Insurance Proceeds. Any proceeds collected <br />(the "Proceeds") under any casualty insurance policy described in this Agreement shall be <br />disbursed to Developer as provided below, but only upon fulfillment of each of the following <br />conditions (the "Restoration Conditions") within ninety (90) days (unless extended by mutual <br />agreement of Developer and City) following the occurrence of the damage for which the <br />Proceeds are collected: <br />(a) Developer shall demonstrate to City's reasonable satisfaction <br />that the Proceeds (together with amounts deposited by Developer pursuant to subparagraph (b)) <br />will be adequate to repair the Improvements and to restore the fair market value of the Property, <br />within a time period reasonably determined by City, to at least the value it had immediately prior <br />to sustaining the damage. Such demonstration shall include delivery to City of (i) plans and <br />specifications reasonably satisfactory to City, and (ii) a construction contract in form and <br />content, and with a contractor, reasonably satisfactory to City. <br />(b) To the extent that the Proceeds are insufficient to accomplish the <br />restoration required above, Developer shall deliver to City funds (the "Shortfall Funds") in the <br />amount of such shortfall, which funds shall be assigned to City as security for Developer's <br />obligation hereunder and held and disbursed in the same manner as the Proceeds. <br />(c) Developer shall execute such documents as City requires to <br />evidence and secure Developer's obligation to use all amounts disbursed for the diligent <br />restoration of the Property. <br />(d) No Event of Default shall remain uncured. <br />1076\O1\1333668.1 <br />34 <br /> <br />