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<br />remain against the Property for labor or materials furnished in connection with any <br />remodeling, additions, modifications, improvements, repairs, renewals or replacements made <br />by the City pursuant to this Section 5.2; provided that if any such lien is established and the <br />City shall first notify the Authority of the City's intention to do so, the City may in good faith <br />contest any lien filed or established against the Property, and in such event may permit the <br />items so contested to remain undischarged and unsatisfied during the period of such contest <br />and any 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 /> <br />Section 5.3. Public Liability and Property Damage Insurance. The City shall maintain or <br />cause to be maintained, throughout the Term of the Lease Agreement, insurance policies, <br />including a standard comprehensive general insurance policy or policies in protection of the <br />Authority, the City and the Assignee and their respective members, officers, agents and <br />employees. Such liability insurance may be maintained as part of or in conjunction with any <br />other liability insurance coverage carried by the City, and may be maintained through a joint <br />exercise of powers authority created for such purpose or in the form of self-insurance by the <br />City. Said policy or policies shall provide for indemnification of said parties against direct or <br />consequential loss or liability for damages for bodily and personal injury, death or property <br />damage occasioned by reason of the operation of the Property. Said policy or policies shall <br />provide coverage in the minimum liability limits of $1,000,000 for personal injury or death of <br />each person and $3,000,000 for personal injury or deaths of two or more persons in each <br />accident or event, and in a minimum amount of $150,000 for damage to property resulting from <br />each accident or event. Such public liability and property damage insurance may, however, be <br />in the form of a single limit policy in the amount of $3,000,000 covering all such risks. <br />Deductibles, if any, shall be in such amounts as may reasonably be obtained by a city in <br />California of comparable size to the City, insuring risks comparable to those that are the subject <br />of said 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 such <br />liability insurance shall be applied toward extinguishment or satisfaction of the liability with <br />respect to which the proceeds of such insurance shall have been paid. <br /> <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 Property <br />by fire and lightning, with extended coverage and vandalism and malicious mischief insurance, <br />with the Authority and the Assignee named as loss payees. Said extended coverage insurance <br />shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, <br />vehicle damage, smoke and such other hazards as are normally covered by such insurance. <br />Such insurance shall be in an amount equal to one hundred percent (100%) of the replacement <br />cost of such structures. Such insurance may be subject to deductible clauses of not to exceed <br />$100,000 for anyone loss. Such insurance may be maintained as part of or in conjunction with <br />any other fire and extended coverage insurance carried by the City and may be maintained in <br />whole or in part in the form of insurance maintained through a joint exercise of powers <br />authority created for such purpose or in the form of self-insurance by the City. The Net <br />Proceeds of such insurance shall be applied as provided in Sections 5.6 and 6.2(a) hereof. <br /> <br />-11- <br />