REQUIREMENTS FOR RESTORATION Clause Samples
The "Requirements for Restoration" clause defines the conditions and procedures that must be met to restore a property or asset after it has been damaged or altered. Typically, this clause outlines the standards for restoration work, such as quality, materials, and timelines, and may specify who is responsible for carrying out and paying for the restoration. Its core practical function is to ensure that any restoration is performed to an agreed-upon standard, thereby protecting the interests of all parties and preventing disputes over the adequacy or scope of the work.
REQUIREMENTS FOR RESTORATION. Unless otherwise expressly agreed in a writing signed by Lender, the following are the Requirements For Restoration:
(a) If the Net Insurance Proceeds or Net Condemnation Proceeds are to be used for the Restoration, prior to the commencement of any Restoration work (the "Work"), Borrower shall provide Lender for its review and written Approval (i) complete plans and specifications for the Work which (A) have been approved by all required governmental authorities, (B) have been approved by an architect satisfactory to Lender (the "Architect") and (C) are accompanied by Architect's signed statement of the total estimated cost of the Work (the "Approved Plans and Specifications"); (ii) the amount of money which Lender reasonably determines will be sufficient when added to the Net Insurance Proceeds or Condemnation Proceeds to pay the entire cost of the Restoration (collectively referred to as the "Restoration Funds"); (iii) a building permit evidencing that the Approved Plans and Specifications and the Work are in compliance with all Requirements; (iv) an executed contract for construction with a contractor satisfactory to Lender (the "Contractor") in a form Approved by Lender in writing; and (v) if required by the Lender, a surety bond and/or guarantee of payment with respect to the completion of the Work. Any such bond or guarantee shall be satisfactory to Lender in form and amount and shall be signed by a surety or other entities who are reasonably acceptable to Lender. Lender shall provide Borrower with Lender's written Approval or disapproval of the foregoing items (i) within seven (7) business days after receipt thereof for Restoration contemplating a cost of $1,000,000 or less and (ii) within a reasonable time after receipt thereof for Restoration contemplating a cost greater than $1,000,000; if disapproved, Lender will specify the reasons for disapproval in writing.
(b) Borrower shall not commence the Work, other than temporary work to protect the Property or prevent interference with business, until Borrower shall have complied with the requirements of subsection (a) of this Section 7.04. So long as there does not currently exist an Event of Default and the following conditions have been complied with or, in Lender's discretion, waived, Lender shall disburse the Restoration Funds in increments to Borrower, from time to time as the Work progresses:
(i) Architect or a developer shall be in charge of the Work.
(ii) Lender shall disburse the Restoration ...
REQUIREMENTS FOR RESTORATION. The following provisions shall apply in connection with the Restoration of the Property:
(a) If the Net Proceeds (hereinafter defined) shall be less than Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00) and the costs of completing the Restoration shall be less than Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00), the Net Proceeds will be disbursed by Mortgagee to Mortgagor upon receipt, provided that all of the conditions set forth in Section 7.04(b)(i)(G) and (H) are met and Mortgagor delivers to Mortgagee a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Mortgage.
(b) If the Net Proceeds are equal to or greater than Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00) or the costs of completing the Restoration are equal to or greater than Seven Million Five Hundred Thousand and No/100 Dollars ($7,500,000.00) Mortgagee shall make the Net Proceeds available for the Restoration in accordance with the provisions of this Section 7.04. The term “Net Proceeds” for purposes of this Section 7.04 shall mean: (i) the net amount of all insurance proceeds received by Mortgagee pursuant to Section 3.01(a)(i), (iv), (vi), (ix), (x) and (xi) hereof as a result of such damage or destruction, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”), or (ii) the net amount of the Award, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may be.
REQUIREMENTS FOR RESTORATION. In the event that either (i) Proceeds shall be paid to Borrower pursuant to Section 5.4(c)(i), (ii) Proceeds shall be made available to Borrower pursuant to Section 5.4(c)(ii) or Section 5.4(c)(iii), or (iii) Borrower shall otherwise be obligated to complete any Restoration, then, in all such cases, Borrower shall, at Borrower’s sole cost and expense: (A) employ a duly licensed and insured architect who shall submit plans to Lender for the Restoration of the Property, (B) deliver to Lender for its review and approval a budget for the completion of such Restoration, which budget shall be certified by Borrower’s architect to be sufficient for the completion of such Restoration, (C) obtain such guaranteed maximum price or stipulated sum general contract agreement from a duly licensed and insured general contractor which provides for the payment and performance of labor and materials necessary for the Lien-free completion of such Restoration in accordance with such budget, (D) post such bonds, obtain such guaranteed maximum price general contract and/or enter into such other agreements and arrangements as Lender may require to insure the Lien-free completion of such Restoration, and (E) obtain and deliver to Lender all Licenses and Permits necessary for the commencement and completion of such Restoration. All material aspects of any Restoration shall be subject to Lender’s review and approval.
REQUIREMENTS FOR RESTORATION. 17 ARTICLE VIII - REPRESENTATIONS OF GRANTOR