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Each insurer shall also agree by endorsement upon the policy or <br /> policies issued by it that (a) it will give thirty (30) days prior <br /> written notice to the Lender of cancellation, non-renewal or <br /> material modification of such policy, and (b) the coverage of the <br /> Lender shall not be terminated, reduced or affected in any manner, <br /> regardless of any breach or violation by the County of any <br /> warranties, declarations or conditions of such insurance policy or <br /> policies, other than a failure to pay premiums when due following <br /> the giving of notice as provided above. The County shall bear all <br /> risk of loss to the Project and, in the event of loss or damage <br /> thereto, the proceeds of such insurance, at the option of Lender <br /> (which shall be reasonably exercised) , shall be applied (a) toward <br /> the replacement, restoration or repair of the Project, or (b) <br /> toward the prepayment of the obligations of the County hereunder, <br /> including, but not limited to, the Installment Payments. The <br /> County shall make claim for, receive payment of, and execute all <br /> documents, checks or drafts received in payment of loss or damage <br /> under any such insurance policy. <br /> 5.7 Performance by the Lender of the County' s <br /> Responsibilities. Any performance required of the County or any <br /> payments required to be made by the County may, if not timely <br /> performed or paid, be performed or paid by the Lender, and, in that <br /> event, the Lender shall be immediately reimbursed by the County for <br /> these payments and for any costs and expenses, legal or otherwise, <br /> associated with the payments or other performance by the Lender, <br /> with interest thereon at a rate equal to eight percent (8k) per <br /> annum. <br /> 5 . 8 Financial Statements. The County agrees that it will <br /> furnish the Lender at such reasonable times as the Lender shall <br /> request current financial statements (including, without <br /> limitation, the County's annual budget as submitted or approved) , <br /> and permit the Lender or its agents and representatives to inspect <br /> the County's books and records and make extracts therefrom. The <br /> County represents and warrants to the Lender that all financial <br /> statements which have been delivered to the Lender fairly and <br /> accurately reflect the County's financial condition and there has <br /> been no material adverse change in the County' s financial condition <br /> as reflected in the financial statements since the date thereof. <br /> 5 .9 Reports. The County agrees that it will furnish, or <br /> cause to be furnished, to the Lender monthly, and at such other <br /> times as may be reasonably requested by Lender, a report from the <br /> County's architect with respect to the status of the construction <br /> of the Project (addressing the percentage of completion and <br /> compliance with the Plans and Specifications) , in form and content <br /> reasonably satisfactory to Lender. The County shall also furnish, <br /> or cause to be furnished, upon Lender' s request, evidence <br /> satisfactory to Lender of the payment of all debts owing <br /> contractors, engineers, architects and materialmen for labor done <br /> 10 <br />