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15 <br /> (iv) The County may settle or adjust insurance claims in its discretion, except that <br /> no County agent or employee will have the power to adjust or settle any property damage <br /> loss greater than $100,000 with respect to the Mortgaged Property, whether or not covered <br /> by insurance, without the Lender's prior written consent. The Lender and the County will <br /> cooperate fully with each other in filing any claim or proof of loss with respect to any in- <br /> surance policy described in this Contract. <br /> (v) The Lender will not be responsible for the sufficiency or adequacy of any re- <br /> quired insurance. <br /> 3.10. Title Insurance. The County agrees to obtain, at its own cost and expense, <br /> an American Land Title Association policy of title insurance, in form satisfactory to the <br /> Lender, effective as of the Closing Date, in an amount not less than the amount financed, <br /> and naming the Lender as insured mortgagee. The policy must insure the County's fee <br /> title to the Mortgaged Property, subject only to Permitted Encumbrances, and must be <br /> issued by a title insurance company qualified to do business in the State of North Caroli- <br /> na and reasonably acceptable to the Lender. On or before the Closing Date, the County <br /> must provide the Lender with a copy of an insurer's commitment to issue such a policy <br /> and, promptly after the Closing Date (and in no event more than 30 days after the Closing <br /> Date), the County must provide the Lender with a copy of the final policy. <br /> ARTICLE IV <br /> CONSTRUCTION <br /> 4.1. Construction; Changes. (a) The County will comply with the provi- <br /> sions of the North Carolina General Statutes and enter into the Construction Contracts, or <br /> in the alternative the County may provide for the School Board to enter into some or all <br /> of the Construction Contracts. The County will cause the construction of the planned im- <br /> provements to the Pledged Facilities to be carried on continuously in accordance with the <br /> Construction Contracts and all applicable State and local laws and regulations. <br /> (b) The County will provide for the Pledged Facilities to be constructed on the <br /> Pledged Site and will insure (i) that no portion of the Pledged Facilities encroaches upon <br /> nor overhangs any easement or right-of-way, (ii) that the Pledged Facilities will be whol- <br /> ly within any applicable building restriction lines, however established, and (iii) that the <br /> Pledged Facilities will not violate applicable use or other restrictions, whether imposed <br /> by law or rule or by prior conveyances. <br /> (c) The County may approve changes to the Construction Contracts in its dis- <br /> cretion except that the County may not, without the Lender's consent, approve any <br /> changes which (i) increase total estimated Project Costs above the amounts previously <br /> identified and designated therefor, or (ii) result in the use of the Mortgaged Property for <br /> purposes substantially different from the use intended as of the Closing Date. <br /> 8 <br />