|
appeal therefrom and shall provide the Authority with full security against any loss or
<br /> forfeiture which might arise from the nonpayment of any such item,in form satisfactory to the
<br /> Authority. The Authority will cooperate fully in any such contest, upon the request and at the
<br /> expense of the City.
<br /> Section 5.3. Public Liability and Property Damage Insurance. The City shall maintain or
<br /> cause to be maintained throughout the Term of this Lease Agreement, a standard
<br /> comprehensive general insurance policy or policies in protection of the Authority,City,and their
<br /> respective members, officers, agents, employees and assigns. Said policy or policies shall
<br /> provide for indemnification of said parties against direct or contingent loss or liability for
<br /> damages for bodily and personal injury,death or property damage occasioned by reason of the
<br /> operation of the Leased Premises. Said policy or policies shall provide coverage in the minimum
<br /> liability limits of $1,000,000 for personal injury or death of each person and $3,000,000 for
<br /> personal injury or deaths of two or more persons in each accident or event, and in a minimum
<br /> amount of $100,000 (subject to a deductible clause of not to exceed $5,000) for damage to
<br /> property resulting from each accident or event. Such public liability and property damage
<br /> insurance may, however, be in the form of a single limit policy in the amount of $3,000,000
<br /> covering all such risks. Such insurance may be maintained as part of or in conjunction with any
<br /> other insurance coverage carried by the City,and such liability insurance may be maintained in
<br /> whole or in part in the form of self-insurance by the City, subject to the provisions of Section
<br /> 5.7, or in the form of the participation by the City in a joint powers agency or other program
<br /> providing pooled insurance. The proceeds of such liability insurance shall be applied by the
<br /> City toward extinguishment or satisfaction of the liability with respect to which paid.
<br /> Section 5.4. Fire and Extended Coverage Insurance.The City shall procure and maintain,
<br /> or cause to be procured and maintained, throughout the Term of this Lease Agreement,
<br /> insurance against loss or damage to the improvements constituting a part of the Leased
<br /> Premises by fire and lightning, with extended coverage and vandalism and malicious mischief
<br /> insurance. Said extended coverage insurance, if required, shall, as nearly as practicable, cover
<br /> loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other
<br /> hazards as are normally covered by such insurance, and shall include earthquake coverage if
<br /> such coverage is available at reasonable cost from reputable insurers in the judgment of the City.
<br /> Such insurance shall be in an amount at least equal to the lesser of (a) one hundred percent
<br /> (100%) of the replacement cost of all of the insured improvements, or(b) the aggregate principal
<br /> amount of the City's Pro Rata Portion of the outstanding Bonds. Such insurance may be
<br /> maintained as part of or in conjunction with any other insurance coverage carried by the City,
<br /> and may be maintained in whole or in part in the form of the participation by the City in a joint
<br /> powers agency or other program providing pooled insurance; provided however, that such
<br /> insurance may not be maintained by the City in the form of self-insurance. The Net Proceeds of
<br /> such insurance shall be applied as provided in Section 6.1(a).
<br /> Section 5.5. Rental Interruption Insurance.The City shall procure and maintain, or cause
<br /> to be procured and maintained, throughout the Term of this Lease Agreement, rental
<br /> interruption or use and occupancy insurance to cover loss, total or partial, of the use of the
<br /> Leased Premises as a result of any of the hazards covered in the insurance required by Section
<br /> 5.4, in an amount at least equal to the maximum Lease Payments coming due and payable
<br /> during any future twenty-four (24) month period. Such insurance may be maintained as part of
<br /> or in conjunction with any other insurance coverage carried by the City,and may be maintained
<br /> in whole or in part in the form of the participation by the City in a joint powers agency or other
<br /> program providing pooled insurance; provided that such insurance may not be maintained in
<br /> the form of self-insurance. The proceeds of such insurance, if any, shall be paid to the Trustee
<br /> and deposited in the Bond Fund, and shall be credited towards the payment of the Lease
<br /> Payments as the same become due and payable.
<br /> -12_
<br />
|