PROCEEDS.
IN
THE EVENT OF A CASUALTY OR CONDEMNATION DESCRIBED IN ARTICLE XVI, THE PROCEEDS
OF THE INSURANCE REQUIRED TO BE MAINTAINED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 1501 HEREOF SHALL BE PAID AND DISBURSED IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE XVI.
SECTION 1504.
RELEASE AND WAIVER OF SUBROGATION.
THE
AUTHORITY AND TENANT EACH HEREBY MUTUALLY RELEASE AND DISCHARGE ONE ANOTHER, AND
THEIR RESPECTIVE OWNERS, OFFICERS, DIRECTORS, MANAGERS, EMPLOYEES AND AGENTS,
FROM ANY AND ALL LIABILITY FOR LOSS OR DAMAGE TO THEIR RESPECTIVE PROPERTY
ARISING FROM OR CAUSED BY ANY CASUALTY OR HAZARD COVERED, OR REQUIRED UNDER THIS
LEASE AGREEMENT TO BE COVERED, IN WHOLE OR IN PART BY INSURANCE ON THE LEASED
PREMISES, THE FACILITIES AND/OR THE LAND, OR THE CONTENTS THEREOF, THAT IS
REQUIRED TO BE MAINTAINED BY THE RELEASING PARTY (OTHER THAN LIABILITY FOR ANY
DEDUCTIBLES THAT THE RELEASING PARTY MAY BE REQUIRED TO PAY WITH RESPECT TO SUCH
INSURANCE) AND HEREBY WAIVE ANY RIGHT OF SUBROGATION WHICH MIGHT OTHERWISE EXIST
IN OR ACCRUE TO ANY PERSON (INCLUDING WITHOUT LIMITATION THEIR RESPECTIVE
INSURERS) ON ACCOUNT HEREOF, REGARDLESS OF ANY NEGLIGENCE ON THE PART OF THE
RELEASED PERSONS WHICH MAY HAVE CONTRIBUTED TO OR CAUSED SUCH LOSS OR DAMAGE,
BUT ONLY TO THE EXTENT THAT PROCEEDS FOR SUCH LOSS OR DAMAGE ARE ACTUALLY
COLLECTABLE UNDER SAID POLICIES.
IF THE POLICIES OF INSURANCE PROVIDED FOR
UNDER THIS ARTICLE XV REQUIRE AN ENDORSEMENT TO PROVIDE FOR CONTINUED COVERAGE
WHERE THERE IS A WAIVER OF SUBROGATION, THE AUTHORITY AND TENANT WILL,
RESPECTIVELY, CAUSE THEIR RESPECTIVE POLICIES TO BE SO ENDORSED.
ARTICLE XVI.
CASUALTY DAMAGE AND CONDEMNATION
SECTION 1601.
DAMAGE BY CASUALTY.
IN THE EVENT OF FIRE
OR OTHER CASUALTY IN OR TO ANY PORTION OF THE LEASED PREMISES, TENANT SHALL GIVE
PROMPT NOTICE THEREOF TO THE AUTHORITY.
(A)
REPAIR AND RESTORATION.
(1)
IF ALL OR A SUBSTANTIAL PART OF THE LEASED
PREMISES IS RENDERED UNTENANTABLE OR INACCESSIBLE BY DAMAGE TO ALL OR ANY PART
OF THE FACILITIES FROM FIRE, THE ELEMENTS, ACCIDENT, TERRORIST ACTIVITY, OR
OTHER CASUALTY (COLLECTIVELY, "CASUALTY") THEN, UNLESS EITHER PARTY IS ENTITLED,
AND ELECTS, TO TERMINATE THIS LEASE AGREEMENT PURSUANT TO SUBSECTIONS (B) OR
(C) BELOW, THE AUTHORITY SHALL, AT ITS EXPENSE, USE REASONABLE EFFORTS TO REPAIR
AND RESTORE THE LEASED PREMISES AND/OR THE FACILITIES, AS THE CASE MAY BE, TO
SUBSTANTIALLY THEIR
73
FORMER CONDITION TO THE EXTENT PERMITTED BY THEN APPLICABLE LAWS; PROVIDED,
HOWEVER, THAT IN NO EVENT SHALL THE AUTHORITY HAVE ANY OBLIGATION:
(A)
TO MAKE REPAIRS OR RESTORATION BEYOND THE
EXTENT OF NET PROCEEDS ACTUALLY RECEIVED BY THE AUTHORITY FOR SUCH CASUALTY (AND
NOT APPLIED BY ANY LENDER TO THEN OUTSTANDING INDEBTEDNESS); AND/OR
(B)
TO REPAIR, RESTORE, OR REPLACE ANY PERSONAL
PROPERTY (INCLUDING WITHOUT LIMITATION THE EXCLUDED PROPERTY) AT THE LEASED
PREMISES OTHER THAN THE EQUIPMENT.
(2)
IF THE AUTHORITY IS REQUIRED TO REPAIR
DAMAGE TO THE LEASED PREMISES AND/OR THE FACILITIES RESULTING FROM A CASUALTY,
THE FOLLOWING SHALL APPLY:
(A)
THIS LEASE AGREEMENT SHALL CONTINUE IN FULL
FORCE AND EFFECT,