Orange County NC Website
Browse       Search
create the same liability on the part of insurer as though separate policies had been written for <br />Lessee and Lessor. <br /> Lessee will provide Lessor with copies of all policies and renewals of policies. All <br />policies will also contain endorsements providing that they will not be cancelled, reduced in <br />amount or coverage, or otherwise modified by the insurance carrier without at least thirty (30) <br />days’ prior written notice to Lessor. Lessor will be entitled to participate in the settlement or <br />adjustment of any losses covered by the policies of insurance. <br /> 9.4 DAMAGE OR DESTRUCTION: Subject to the insurance provisions of any <br />declaration of covenants or unit ownership which will control over this lease, if the <br />Improvements are damaged or destroyed by fire or other casualty, Lessee will promptly restore <br />the Improvements to their condition preceding the damage and continue to pay the Ground Lease <br />Fee unless <br /> a. The full repair or restoration is not reasonably practicable or <br /> b. The available insurance proceeds of the insurance policies maintained in <br />accordance with Section 9.3 are less than eighty percent (80%) of the cost of the repair or <br />restoration. <br /> <br /> In either event, Lessee may terminate this lease after giving Lessor written notice within sixty <br />(60) days of the loss and allowing Lessor sixty (60) days from the receipt of the notice to either <br /> a. Seek an adjustment from the insurer to increase the amount of insurance proceeds <br />to cover at least eighty percent (80%) of the cost of the repairs or restoration, or <br /> b. Make arrangements to use the available proceeds to restore or replace the <br />damaged Improvements with Improvements of reasonably equivalent quality with a floor area of <br />at least eighty percent (80%) of the damaged Improvements. <br /> <br /> If Lessor fails, within sixty days of receipt of Lessee’s notice, to give Lessee notice that it <br />has made arrangements to increase the insurance proceeds or restore or replace the <br />Improvements as specified above, this Lease will terminate and the proceeds of the insurance <br />maintained by Lessee will be paid in the following priority: <br /> a. To the payment of the expenses of collection of the proceeds; <br /> b. As may be permitted in any Permitted Mortgage then encumbering the Lessee’s <br />leasehold estate; <br /> c. To the Lessee up to the then applicable Resale Formula Price as of immediately <br />prior to the casualty calculated pursuant to Article 10. <br /> d. The balance of the proceeds, if any, to Lessor. <br /> <br /> 9.5 EMINENT DOMAIN AND PUBLIC DEDICATION: If the entire Leased Premises <br />are taken by eminent domain, this lease will terminate as of the date the Lessee is required to <br />surrender possession of the Leased Premises, and the condemnation award will be allocated in <br />the same manner as a casualty loss as set out in Section 9.4. <br /> <br /> If less than the entire Leased Premises are taken, Lessor will in its discretion allocate <br />some or all of the proceeds to enable Lessee to repair and restore that which may remain thereof <br />while retaining the balance of the award. If the Lessor determines that the Leased Premises <br />cannot be restored to a residential use consistent with this Ground Lease, the award will be <br />distributed in accordance with Section 9.4. The prosecution or defense of any proceedings in <br />DocuSign Envelope ID: 1C608BEC-B713-4BE4-9E53-CD92D598627F