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This Fifteenth-century palace was built by the distinguished Varinis, a family of knights, as evidenced by the compositional elements in their octagonal coat of arms set at the center of the building. The palazzo later passed into the ownership of other families and was eventually used in the most diverse ways, partly as the Conservatory of Santa Margherita known as delle Converte (1740-1816) and as a male orphanage (1823-1864) and partly occupied by production businesses. The palace suffered extensive damage from aerial bombings during the Second World War. The restoration work has brought to light fragments of mullioned windows, graffiti and banded coats of arms. In the rooms on the ground floor, one may admire a frescoed ceiling with floral motifs of black lilies and blue roses. The main floor has a wooden ceiling with fresco fragments converging on a heraldic coat of arms. Since 2005 the structure is the seat of the Chamber of Commerce of Foligno.