1994-06-21 Minutes - Laserfiche WebLink

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Section 806. Subject to the terms of the Credit Facility Agreement, the proceeds of such insurance received by the Trustee shall be applied by the Authority to the repair, replacement or reconstruction of the damaged or destroyed property, if in the opinion of an independent registered architect, registered engineer, construction manager or contractor, which architect, engineer, construction manager or contractor shall be acceptable to the Trustee (i) the cost of such repair, replacement or reconstruction shall not exceed the amount of insurance proceeds to be received by reason of such damage or destruction and other amounts available therefor, and (ii) such repair, replacement or reconstruction can be completed within the period covered by the rental value insurance. Such proceeds shall be held and disbursed by the Trustee with the written consent of the Credit Facility Issuer in the manner and upon the showings provided for in Section hereof, except that the Trustee with the written consent of the Credit Facility Issuer may release such proceeds, or a part thereof, upon a showing satisfactory to the Trustee that repairs have been made and paid for. If either or both conditions shall not exist, the proceeds of such insurance received by the Trustee shall be used upon the consent of the Credit Facility Issuer to redeem Bonds in an extraordinary optional redemption, in whole or in part, at any time, without premium or penalty. Section 807. In the event the Authority shall not • commence to repair, replace or reconstruct the portion of the Project so damaged or destroyed within ninety (90) days after any such loss or damage, or the Authority, having commenced such work of repair or replacement, shall abandon or fail diligently to prosecute the same, the Trustee may, in its discretion, make or complete such repairs, replacements, or reconstructions and if it shall elect so to do, may enter upon said premises to any extent necessary for the accomplishment of such purposes, but nothing herein contained shall obligate the Trustee to make or complete any such repairs, replacements, or reconstructions unless it shall have been requested to do so by the holders of not less than twenty-five percent (25%) in aggregate principal amount of all Bonds outstanding hereunder, and shall have been indemnified to its satisfaction against all loss, damage and expense which it might thereby incur, provided, the Trustee may not elect to undertake such work if the last sentence of Section 6.06 applies. Section 808. In case the Authority shall neglect, fail or refuse to proceed forthwith in good faith with the repair, replacement or reconstruction of the Project which shall have been so destroyed or damaged, and such negligence, failure or refusal shall continue for one hundred twenty (120) days, the Trustee, upon receipt of the insurance moneys, shall (unless the Trustee proceeds to make the repairs, replacements, or reconstructions of the destroyed or damage property as above provided) transfer such ~ proceeds to the Sinking Fund. 74