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This palace has also belonged to the Mercurelli and Salari families over time, and it dates back to the 1660s. A distinctive feature is the ashlar portal. Like many other noble residences in Foligno, the palace was created by adapting pre-existing structures, probably including the remains of an ancient church dedicated to St. Stephen. On the main floor one may still see an image of Madonna with the Child, probably dating back to the late fifteenth-century, which belonged to the church.