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1. loss due to business interruption, loss of use, or other consequential loss extending beyond <br />direct physical loss or damage to Owner's property or the Work caused by, arising out of, or <br />resulting from fire or other perils whether or not insured by Owner; and <br />2. loss or damage to the completed Project or part thereof caused by, arising out of, or resulting <br />from fire or other insured peril or cause of loss covered by any property insurance maintained <br />on the completed Project or part thereof by Owner during partial utilization pwsuant to <br />Paragraph 14.05, after Substantial Completion pursuant to Paragraph 14.04, or after final <br />payment pursuant to Paragraph 14.07. <br />C. Any insurance policy maintained by Owner covering any loss, damage or consequential loss <br />referred to in Paragraph 5.07.13 shall contain provisions to the effect that in the event of payment <br />of any such loss, damage, or consequential loss, the insurers will have no rights of recovery <br />against Contractor, Subcontractors, or Engineer, and the officers, directors, members, partners, <br />employees, agents, consultants and subcontractors of each and any of them. <br />5.08 Receipt and Application of Insurance Proceeds <br />A. Any insured loss under the policies of insurance required by Paragraph 5.06 will be adjusted with <br />Owner and made payable to Owner as fiduciary for the loss payees, as their interests may appear, <br />subject to the requirements of any applicable mortgage clause and of Paragraph 5.08.13. Owner <br />shall deposit in a separate account any money so received and shall distribute it in accordance <br />with such agreement as the parties in interest may reach. If no other special agreement is reached, <br />the damaged Work shall be repaired or replaced, the moneys so received applied on account <br />thereof, and the Work and the cost thereof covered by an appropriate Change Order. <br />B. Owner as fiduciary shall have power to adjust and settle any loss with the insurers unless one of <br />the parties in interest shall object in writing within 15 days after the occurrence of loss to <br />Owner's exercise of this power. If such objection be made, Owner as fiduciary shall make <br />settlement with the insurers in accordance with such agreement as the parties in interest may <br />reach. If no such agreement among the parties in interest is reached, Owner as fiduciary shall <br />adjust and settle the loss with the insurers and, if required in writing by any pariy in interest, <br />Owner as fiduciary shall give bond for the proper perfortnance of such duties. <br />5.09 Acceptance of Bonds and Insurance; Option to Replace <br />A. If either Owner or Contractor has any objection to the coverage afforded by or other provisions of <br />the bonds ar insurance required to be purchased and maintained by the other party in accordance <br />with Article 5 on the basis of non-conformance with the Contract Documents, the objecting party <br />shall so notify the other party in writing within 10 days after receipt of the certificates (or other <br />evidence requested) required by Paragraph 2.01.13. Owner and Contractor shall each provide to <br />the other such additional information in respect of insurance provided as the other may <br />reasonably request. If either party does not purchase or maintain all of the bonds and insurance <br />required of such party by the Contract Documents, such party shall notify the other party in <br />writing of such failure to purchase prior to the start of the Work, or of such failure to maintain <br />prior to any change in the required coverage. Without prejudice to any other right or remedy, the <br />other party may elect to obtain equivalent bonds or insurance to protect such other party's <br />EJCDC C-700 Standard General Conditions oithe ConstrucNon Contract <br />Copyright C) 2007 National Society of Professional Engineers for EJCDC. All rights reserved. <br />Paee 21 of 62 <br />