Lease Agreement- City of Brea - Laserfiche WebLink

Home Browse Search

Section 5.6. Recordation Hereof; Title Insurance. On or before the Closing Date the City shall, at its expense, (a) cause this Lease Agreement and the Site and Facility Lease, or a memorandum hereof or thereof, and a memorandum of the assignment made pursuant to Section 5.01 of the Indenture,in each case in form and substance approved by Bond Counsel, to be recorded in the office of the Orange County Recorder, and (b) obtain a CLTA policy of title insurance which insures the City's leasehold estate in the Leased Premises in art amount equal to the aggregate principal amount of the Bonds allocable to the City. All Net Proceeds received under said policy shall be deposited with the Trustee in the Redemption Fund and shall be. applied to the redemption of Bonds pursuant to Section 4.01(b) of the Indenture. A copy of such policy shall be delivered by the City to the Municipal Bond Insurer. Section 5.7. Net Proceeds of Insurance; Form of Policies. Each policy of insurance maintained pursuant to Sections 5.4, 5.5 and 5.6 shall name the Trustee as loss payee so as to provide that all proceeds thereunder shall be payable to the Trustee and shall name the Municipal Bond Insurer as an additional insured. All required insurance policies shall be provided by a commercial insurer rated "A" or better by A.M. Best & Company or rated in one of the two highest rating categories by Moody's and S&P (without regard to designations of plus (+) or minus (-). The City shall pay or cause to be paid when due the premiums for all insurance policies required by this Lease Agreement. All such policies shall provide that the Trustee shall be given thirty (30) days' notice of each expiration, any intended cancellation thereof or reduction of the coverage provided thereby. The Trustee shall not be responsible for the sufficiency or amount of any insurance or self-insurance herein required and shall be fully protected in accepting payment on account of such insurance or any adjustment,compromise or settlement of any loss. The City shall cause to be delivered to the Trustee and the Municipal Bond Insurer annually, no later than August 1 in each year, a certificate stating that all of the insurance policies required by this Lease Agreement are in full force and effect and identifying whether any such insurance is then maintained in the form of self-insurance. In the event that any insurance maintained pursuant to Section 5.3 shall be provided in the form of self-insurance, the City shall file with the Trustee annually,within ninety (90) days following the close of each Fiscal Year, a statement of an independent insurance adviser engaged by the City identifying the extent of such self-insurance and stating the determination that the City maintains sufficient reserves with respect thereto. In the event that any such insurance shall be provided in the form of self-insurance by the City, the City shall not be obligated to make any payment with respect to any insured event except from such reserves. The results of such review shall be filed with the Trustee and the Municipal Bond Insurer. Section 5.8. Installation of Personal Property. The City may, at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed items of equipment or other personal property in or upon any portion of the Leased Premises. All such items shall remain the sole property of the City,in which neither the Authority nor the Trustee shall have any interest, and may be modified or removed by the City at any time provided that the City shall repair and restore any and all damage to the Leased Premises resulting from the installation, modification or removal of any such items. Nothing in this Lease Agreement shall prevent the City from purchasing or leasing items to be installed pursuant to this Section 5.8 under a lease or conditional sale agreement, or subject to a vendor's lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any part of the Leased Premises. Section 5.9. Liens. Neither the City nor the Authority shall, directly or indirectly, create, incur, assume or suffer to exist any mortgage,pledge,lien, charge,encumbrance or claim on or with respect to any portion of the Leased Premises, other than the respective rights of the Authority and the City as provided herein and Permitted Encumbrances. Except as expressly provided in this Article V, the City and the Authority shall promptly, at their own expense, -13-