Agenda - 11-16-2010 - 4k - Laserfiche WebLink

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• USE OF NET PROCEEDS 5.1. Damage, Destruction or Condemnation. The County shall promptly notify the Company and the Trustee if (a) the Mortgaged Property or any portion thereof is destroyed or damaged by fire or other casualty, (b) any governmental authority takes, or notifies the County of any intent to take, title to, or the temporary or permanent use of the Mortgaged Property or any portion thereof, or the estate of the County or the Company in the Facilities, the Sites or any portion thereof, under the power of eminent domain, (c) a material defect in the construction of the Facilities becomes apparent, or (d) title to or the use of all or any portion of the Mortgaged Property is lost by reason of a defect in title. Each such notice must describe generally the nature and extent of such damage, destruction or taking. The County must provide any additional information concerning such matter as the Company or the Trustee may reasonably request. The County shall file its claims under insurance coverages and claims for awards or payments in the nature of condemnation awards resulting from any such damage, destruction or taking. The County shall prosecute all such claims for such awards or payments in good faith and with due diligence. Any Net Proceeds received by the County as a result of such claims will be used as provided in Sections 5.2 and 5.3. • 5.2. Securi Interest in Net Proceeds• De osit and Disbursement. t3' ~ P (a) The County grants a security interest in the Net Proceeds to the Company to secure the Obligations, subject to the further provisions of this Section. This Contract is intended as and constitutes a security agreement with respect to such security interest. All Net Proceeds will remain subject to the security interest provided for in this subsection until expended in compliance with the requirements of this Contract. (b) If the amount of Net Proceeds received by the County from any single event or any single series of related events is less than $1,000,000, then the County will have no obligation to account to the Company or any other person or entity with respect to the use of such Net Proceeds. The County, however, acknowledges that its use of such funds may be constrained by the requirements of the Code and the County's covenants and representations in Section 6.2. (c) If the amount of Net Proceeds received by the County from any single event or any single series of related events is at least $1,000,000, the County will cause such Net Proceeds to be paid to the Trustee (i) for deposit in the Project Fund, if received before the Completion Date, or (ii) if received thereafter, for deposit and application as • provided in Section 5.3. 9