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19.2 City Attorney Mal Modify. The City Attorney may modify the type and amounts of <br />insurance required pursuant to this Section. Notwithstanding the foregoing, so long as the <br />Property complies with the Senior Lender's insurance requirements, the City Attorney will not <br />require additional insurance coverage unless (i) such additional insurance is required by <br />applicable law or (ii) if not required by additional law, such additional insurance shall only be <br />required if it is readily available on commercially reasonable terms and the cost thereof can be <br />borne by the Borrower from available Borrower revenues without causing the Borrower to <br />default under the Senior Loan or the Partnership Agreement. <br />19.3 Claims and Proceedings. Developer shall give City immediate notice of <br />any material casualty to any portion of the Property/Project, whether or not covered by <br />insurance, and of the initiation or threatened initiation of any proceeding for the condemnation or <br />other taking for public or quasi -public use of any portion of the Property (collectively, <br />"Condemnation"), and shall provide City with copies of all documents which pertain to any such <br />casualty or Condemnation. Subject to the rights of any Senior Lender, Developer shall take all <br />action reasonably required by City in connection therewith to protect the interests of Developer <br />and/or City, and City shall be entitled (without regard to the adequacy of its security) to <br />participate in any action, claim, adjustment or proceeding and to be represented therein by <br />counsel of its choice. Developer shall not settle, adjust, or compromise any claim, action, <br />adjustment or proceeding without prior written approval of Senior Lender, if any, or if there is <br />not a Senior Lender, the City, which approval shall not be unreasonably withheld or delayed. <br />19.4 Delivery of Proceeds to City. In the event that, notwithstanding the "lender's <br />loss payable endorsement" requirement set forth above, the proceeds of any casualty insurance <br />policy described herein are paid to Developer, Developer shall, subject to any superior rights of <br />the Senior Lender, deliver such proceeds to the City immediately upon receipt. <br />19.5 Application of Casualty Insurance Proceeds. Any proceeds collected (the "Proceeds") <br />under any casualty insurance policy described in this Agreement shall be disbursed to Developer <br />as provided in the Senior Loan Documents, provided if there is no Senior Loan then as provided <br />below, but only upon fulfillment of each of the following conditions (the "Restoration <br />Conditions") within ninety (90) days (unless extended by mutual agreement of Developer and <br />City) following the occurrence of the damage for which the Proceeds are collected: <br />(a) Developer shall demonstrate to City's reasonable satisfaction that the Proceeds <br />(together with amounts deposited by Developer pursuant to subparagraph (b)) will <br />be adequate to repair the Improvements and to restore the fair market value of the <br />Property, within a time period reasonably determined by City, to at least the value <br />it had immediately prior to sustaining the damage. Such demonstration shall <br />include delivery to City of (i) plans and specifications reasonably satisfactory to <br />City, and (ii) a construction contract in form and content, and with a contractor, <br />reasonably satisfactory to City. <br />(b) To the extent that the Proceeds are insufficient to accomplish the restoration <br />required above, Developer shall deliver to City funds (the "Shortfall Funds") in <br />the amount of such shortfall, which funds shall be assigned to City as security for <br />