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therefore, and prior to start of any construction/rehabilitation work. All policies insuring <br />against damage to the Improvements shall contain an agreed value clause sufficient to <br />eliminate any risk of co- insurance. No less than thirty (30) days prior to the expiration of <br />each policy, Developer shall deliver to City evidence of renewal or replacement of such <br />policy reasonably satisfactory to City Attorney. <br />19.2 City Attorney May Modify. The City Attorney may modify the <br />type and amounts of insurance required pursuant to this Section. <br />19.3 Claims and Proceedings. Developer shall give City <br />immediate notice of any material casualty to any portion of the Property, whether or not <br />covered by insurance, and of the initiation or threatened initiation of any proceeding for <br />the condemnation or other taking for public or quasi- public use of any portion of the <br />Property (collectively, "Condemnation "), and shall provide City with copies of all <br />documents which pertain to any such casualty or Condemnation. Developer shall take all <br />action reasonably required by City in connection therewith to protect the interests of <br />Developer and /or City, and City shall be entitled (without regard to the adequacy of its <br />security) to participate in any action, claim, adjustment or proceeding and to be <br />represented therein by counsel of its choice. Developer shall not settle, adjust, or <br />compromise any claim, action, adjustment or proceeding without prior written approval, <br />which approval shall not be unreasonably withheld or delayed. <br />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 Casualtv 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 two years (or such longer time period reasonably <br />determined by City), to at least the value it had immediately prior to sustaining the <br />damage. Such demonstration shall include delivery to City of (i) plans and specifications <br />reasonably satisfactory to City, and (ii) a consnuction/rchabilitation 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 <br />accomplish the restoration required above, Developer shall deliver to City (the "Shortfall <br />Funds ") in the amount of such shortfall, which Rinds shall be assigned to City as security <br />36 <br />25C -40 <br />