5.1 If all the Facilities are destroyed or substantially destroyed in a single event and the insurance proceeds (when taken together with any other funds available to Project Co) are equal to or greater than the amount required to repair or reinstate the Facilities, then Project Co shall calculate the Senior Debt Amount loan life cover ratio (on the assumption that the Facilities are repaired or reinstated in accordance with Clause 36.19 of the Project Agreement (Application of Proceeds).
5.2 If the calculation referred to in paragraph 5.1 above shows that the Senior Debt Amount loan life cover ratio is greater than or equal to [event of default level] then Project Co shall be subject to the procedure set out in Clauses 36.19 to 36.21 (Application of Proceeds) of the Project Agreement.
5.3 If the calculation referred to in paragraph 5.1 above shows that the Senior Debt Amount loan life cover ratio is less than [event of default level] then an amount equal to the lesser of:
5.3.1 the insurance proceeds; and
5.3.2 the Base Senior Debt Amount or, if any Additional Permitted Borrowing has been advanced, the Revised Senior Debt Termination Amount.
shall be released from the Insurance Proceeds Account to Project Co.
5.4 The Agent on behalf of the Senior Funders confirms that it will release monies from the Insurance Proceeds Account, to allow Clause 36.19A (Applications of Proceeds) of the Project Agreement to be complied with.
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13 The inclusion of an economic reinstatement test is not mandatory. In some cases sponsors may insist on no test being included. However, if a test is included it should be in the form of this clause. This Clause should be reviewed in light of the agreed form of Clause 36.23 of the Project Agreement.