Ability to cut or clip the 3D terrain

When the terrain is enabled it can hide graphics which are below grade. Especially when excavation is required. Is it possible to allow a shape or file to 'clip' or 'cut' the terrain?

First image attached shows the flat aerial image raised up. Second image shows the terrain cutting through the model. Third image is fake but shows the idea of having the terrain 'clipped', and now we can see the model which is below grade.