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19.4 Delivery of Proceeds to City. In the event that, <br />notwithstanding the "lender's loss payable endorsement" requirement set forth above, the <br />proceeds of any casualty insurance policy described herein are paid to Developer, <br />Developer shall, subject to any superior rights of the Senior Lender, deliver such <br />proceeds to the City immediately upon receipt. <br />19.5 Application of Casualty Insurance Proceeds. Any <br />proceeds collected (the "Proceeds ") under any casualty insurance policy described in this <br />Agreement shall be disbursed to Developer as provided below, but only upon fulfillment <br />of each of the following conditions (the "Restoration Conditions ") within ninety (90) <br />days (unless extended by mutual agreement of Developer and City) following the <br />occurrence of the damage for which the Proceeds are collected: <br />(a) Developer shall demonstrate to City's reasonable <br />satisfaction that the Proceeds (together with amounts deposited by Developer pursuant to <br />subparagraph (b) will be adequate to repair the Improvements and to restore the fair <br />market value of the Property, within a time period reasonably determined by City, to at <br />least the value it had immediately prior to sustaining the damage. Such demonstration <br />shall include delivery to City of (i) plans and specifications reasonably satisfactory to <br />City, and (ii) a rehabilitation contract in form and content, and with a contractor, <br />reasonably satisfactory to City. <br />(b) To the extent that the Proceeds are insufficient to <br />accomplish the restoration required above, Developer shall deliver to City funds (the <br />"Shortfall Funds ") in the amount of such shortfall, which funds shall be assigned to City <br />as security for Developer's obligation hereunder and held and disbursed in the same <br />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 />19.6 Method of Disbursement and Undisbursed Funds. <br />Any Proceeds and Shortfall Funds to be disbursed to Developer shall be held by City and <br />disbursed in accordance with then customary disbursement procedures and related <br />provisions. Any amounts remaining undisbursed following completion of such restoration <br />shall be returned to Developer up to the amount of any Shortfall Funds deposited by <br />Developer, and any other amounts remaining shall either be paid to Developer or applied <br />by City against any obligations to City that are secured by a lien on the Property, as they <br />elects in their sole and absolute discretion. <br />19.7 Failure to Satisfy Conditions. In the event that Developer <br />fails to fulfill the Restoration Conditions within ninety (90) days (unless extended <br />pursuant to Section 19.5) following the date on which the damage occurs, the Proceeds <br />shall be applied by City against any obligations to City that are secured by a lien on the <br />35 <br />251 -41 <br />