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1 <br /> <br /> 3 <br /> <br /> 5 <br /> <br /> 7 <br /> <br /> 9 <br /> <br />11 <br /> <br />13 <br /> <br />15 <br /> <br />17 <br /> <br />19 <br /> <br />21 <br /> <br />23 <br /> <br />25 <br /> <br />27 <br /> <br />29 <br /> <br />31 <br /> <br />33 <br /> <br />35 <br /> <br />37 <br /> <br />39 <br /> <br />41 <br /> <br />43 <br /> <br />45 <br /> <br />47 <br /> <br />49 <br /> <br />chronological order that the Authority receives written notice <br />of Settlements. Requisitions shall be paid by the Trustee in <br />the sequential order received. <br /> <br /> Payment of Settlements shall be made solely from any moneys <br />in the Claims Payment Fund, including Loss Reserves and <br />Undesiqnased Reserves as provided in Section 3.6 hereof. The <br />Authority shall not enter into a settlement agreement with <br />respect to a Claim unless the amount of the Settlement is <br />available in the Claims Payment Fund. All amounts paid from <br />tke Claims Payment Fund as Settlements or designated as Loss <br />Reserves shall be deemed to be paid or designated first from or <br />with respect to amounts originally deposited from Bond <br />proceeds, if at any time sufficient moneys are not on deposit <br />in the Claims Payment Fund to pay in full any Settlement upon <br />submission to the Trustee of a properly completed Requisition <br />as descriDed herein, such Requisition for Settlement payment <br />shall be paid in part to the extent of available moneys in the <br />Claims Payment Fund and the Trustee shall promptly upon the <br />occurrence of an event of abatement as described in Article VII <br />give no~ice of such insufficiency to the Authority, who shall <br />in turn give prompt notice to all Participants, that an event <br />of abatement, as described further in Article VII hereof, shall <br />have occurred. <br /> <br /> In the event the Low Reserves Mode is in effect, the <br />Au~horisy will not enter into a settlement agreement with <br />respect to a Claim unless the amount of the Settlement has been <br />reserved as a Loss Reserve with respect to the Claim. <br /> <br /> SECTION 3.5 Purchase of Commercial Insurance or <br />Reinsurance. The Authority may provide Coverage, or a portion <br />of Coverage, to the Participants by purchase of liability <br />insurance from a commercial insurer or reinsurer, upon the <br />approval of the Authority's Governing Board by at least a <br />majority vote. The Authority may use Undesignated Reserves to <br />purchase such commercial insurance or reinsurance; provided, <br />however, that the Authority may use Loss Reserves to purchase <br />such commercial insurance or reinsurance if the policy of <br />commercial insurance or reinsurance to be purchased covers the <br />Claims for which such Loss Reserves were established. In <br />either event, the Authority shall submit a Requisition to the <br />Trustee requesting a disbursement from the Claims Payment Fund, <br />a~taching evidence of existence of the insurance policy being <br />purchased and certifying that such amounts are to be used in <br />compliance with this Section. The Authority shall continue to <br />be cbl!qated to pay Settlements which are covered by such <br />commercial excess insurance or reinsurance, purchased for <br />coverage within the mandatory limits provided by the Authority, <br />from moneys in the Claims Payment Fund even in the event such <br /> <br /> 16 <br />2658002/2 <br /> <br /> <br />