Restoration Deficiency Sample Clauses
A Restoration Deficiency clause defines the obligations of a party, typically a tenant, to restore leased premises to a specified condition at the end of a lease term. This clause outlines the standards for restoration, such as repairing damage, removing alterations, or returning the property to its original state, and may specify financial penalties or additional payments if the restoration is incomplete or substandard. Its core function is to ensure the property owner is compensated or made whole if the premises are not properly restored, thereby protecting the landlord from incurring unexpected repair costs.
Restoration Deficiency. If at any time the Net Proceeds or the undisbursed balance thereof, together with Rents that will continue to be generated by the affected Property despite the Casualty, shall not, in the reasonable opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the balance of the costs estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration and ongoing Operating Expenses (including Debt Service) associated with the affected Property, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made (but in all events Borrower shall make such deposit within sixty (60) days following demand). The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration and/or for ongoing Operating Expenses (including Debt Service) associated with the affected Property on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed shall constitute additional security for the Obligations.