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portion thereof resulting from fire or other casualty. In the event of any such damage, the Multifamily Developer will forthwith repair, reconstruct and restore the Minimum Improvements • to substantially the same or an improved condition or value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Multifamily Developer will apply the proceeds of any insurance relating to such damage received by the Multifamily Developer to the payment or reimbursement of the costs thereof. Any insurance proceeds remaining after completion of such repairs, construction and restoration shall be remitted to the Multifamily Developer. (e) The City agrees that any interest on its part by virtue of this Agreement in the application or receipt of any proceeds of insurance under the policies required by subsections (a)(i) or (b)(i) above shall be subordinate to the interest of the Multifamily Developer's lenders of financing for the construction of the Minimum Improvements. Section 6.2. Condemnation. In the event that title to and possession of the Minimum Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person, the Multifamily Developer shall, with reasonable promptness after such taking, notify the City as to the nature and extent of such taking. Upon receipt of any condemnation award, the Multifamily Developer shall elect to either: (a) use the entire condemnation award to reconstruct the Minimum Improvements (or, in the event only a part of Minimum Improvements have been taken, then to reconstruct such part) within the Tax Increment District; or (b) retain the condemnation awazd whereupon in the event that a substantial portion of the Multifamily Development Property and Minimum Improvements have been taken, the City's obligations under the Note shall be terminated. ARTICLE VII Mortgage Financing • Section 7.1. MorteaQe Financing. Prior to the issuance of the Note to the Multifamily Developer, the Multifamily Developer shall provide to the City evidence that the Multifamily Developer has secured or will secure fmancing sufficient for construction of the Minimum Improvements. If the City fords that the evidence is acceptable, then the City shall notify the Multifamily Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within fourteen (14) days from the date when the City is provided the evidence. If the City rejects the evidence as inadequate, it shall do so in writing specifying the basis for the rejection. In any event, the Multifamily Developer may resubmit adequate evidence that it has secured or will secure financing after such rejection. Section 7.2. Mortgagee's Option to Cure Events of Default. Upon the occurrence of an Event of Default under this Agreement, the City agrees to use its best efforts to provide the mortgagee under any Mortgage with written notice of such Event of Default and such mortgagee shall have the right, at its option, to cure or remedy such Event of Default; provided, that a failure to give such notice shall not impair the City to exercise any remedy available to it as a result of such Event of Default. 16 r~