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remain undischarged and unsatisfied during the period of such contest and, any appeal
<br />therefrom and shall provide the Authority with full security against any loss or forfeiture
<br />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
<br />the expense of the City.
<br />Section 5.3. Public Liability and Property Damage Insurance. The City shall
<br />maintain or cause to be maintained, throughout the Term of the Lease Agreement,
<br />insurance policies, including a standard comprehensive general insurance policy or
<br />policies in protection of the Authority, the City and the Assignee and their respective
<br />members, officers, agents and employees. Such liability insurance may be maintained as
<br />part of or in conjunction with any other liability insurance coverage carried by the City, and
<br />may be maintained through a joint exercise of powers authority created for such purpose or
<br />in the form of self-insurance by the City. Said policy or policies shall provide for
<br />indemnification of said parties against direct or consequential loss or liability for damages
<br />for bodily and personal injury, death or property damage occasioned by reason of the
<br />operation of the Property. 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
<br />minimum amount of $150,000 for damage to property resulting from each accident or event.
<br />Such public liability and property damage insurance may, however, be in the form of a
<br />single limit policy in the amount of $3,000,000 covering all such risks. Deductibles, if any,
<br />shall be in such amounts as may reasonably be obtained by a city in California of
<br />comparable size to the City, insuring risks comparable to those that are the subject of said
<br />insurance coverage, but shall in no circumstance be in excess of amounts that would be
<br />reasonable in the exercise of prudence and good judgment by the City. The proceeds of
<br />such liability insurance shall be applied toward extinguishment or satisfaction of the
<br />liability with respect to which the proceeds of such insurance shall have been paid.
<br />Section 5.4. Fire and Extended Coverage Insurance. The City shall procure and
<br />maintain, or cause to be procured and maintained, throughout the Term of the Lease
<br />Agreement, insurance against loss or damage to any structures constituting part of the
<br />Property by fire and lightning, with extended coverage and vandalism and malicious
<br />mischief insurance, with the Authority and the Assignee named as loss payees. Said
<br />extended coverage insurance shall, as nearly as practicable, cover loss or damage by
<br />explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are
<br />normally covered by such insurance. Such insurance shall be in an amount equal to one
<br />hundred percent (100%) of the replacement cost of such structures. Such insurance may be
<br />subject to deductible clauses of not to exceed $100,000 for any one loss. Such insurance may
<br />be maintained as part of or in conjunction with any other fire and extended coverage
<br />insurance carried by the City and may be maintained in whole or in part in the form of
<br />insurance maintained through a joint exercise of powers authority created for such purpose
<br />or in the form of self-insurance by the City. The Net Proceeds of such insurance shall be
<br />applied as provided in Sections 5.6 and 6.2(a) hereof.
<br />Section 5.5. Rental Interruption Insurance. The City shall procure and maintain, or
<br />cause to be maintained, throughout the Term of the Lease Agreement, rental interruption
<br />insurance to cover loss, total or partial, of the use of any part of the Property during the
<br />Term of the Lease Agreement as a result of any of the hazards covered in the insurance
<br />required by Section 5.4 hereof, with the Authority and the Assignee named as additional
<br />insureds, in an amount at least equal to the maximum amount of Lease Payments payable in
<br />any two year period. Such insurance may be carried in conjunction with, and may be
<br />subject to the same provisions as, the insurance required under Section 5.4. The City hereby
<br />assigns to the Authority all right of the City, if any, to collect and receive Net Proceeds
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