Agmt15 City of RWC Public Financing Authority Water Revenue Refunding Bonds

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_ __ ___ _. Alternatively, if the proceeds of such insurance are sufficient to enable the City to retire all outstanding Parity Obligations and the Installment Payments and all other amounts due hereunder and under the Indenture, the City may elect not to repair, reconstruct or replace the damaged or destroyed portion of the Enterprise, and thereupon such proceeds shall be applied to the prepayment of the Installment Payments as provided in Article VI and to the payment of all other amounts due hereunder and under the Indenture, and as otherwise required by the documents pursuant to which such Parity Obligations were issued. (b) The City will p�ocure and maintain commercial generai liability insurance covering claims against the City for bodily injury or death, or damage to property, occasioned by reason of the ownership or operation of the Enterprise, such insurance to afford protection in such amounts and against such risks as are usually covered in connection with similar enterprises. (c) The City will procure and maintain workers' compensation insurance against liability for compensation under the Workers' Compensation Insurance and Safety Act of California, or any act hereafter enacted as an amendment or supplement or in lieu thereof, such insurance to cove�all persons employed in connection with the Ente�prise. (d) All policies of insurance required to be maintained herein shall provide that the Trustee shall be given thirty (30) days' written notice of any intended cancellation thereof or reduction of coverage provided thereby, provided, however, the Trustee shall not be responsible for the sufficiency of any insurance herein required. (e) In lieu of obtaining insurance coverage as required by this Section, such coverage may be maintained by the City in the fonn of self-insurance so long as an Insurance Consultant certi�es annually to the Trustee and the Authority that the City's general insurance reserves are actuarially sound and are adequate to provide the necessary coverage and that such reserves are held in a separate trust fund by an independent trustee (which certification the Trustee may conclusively rely upon). Any statements of self-insurance shall be delivered to the Trustee. Such certification, and the requirement that funds be held in a trust fund, shall not be required unless the City is fully self-insured with respect to such coverage. (fl The City shall pay or cause to be paid when due the premiums for all insurance policies required hereby. Section 5.11. Books and Accounts; Financial Statements. (a) The City will keep proper books of record and accounts of the Enterprise, separate from all other records and accounts of the City, in which complete and correct entries shall be made of all transactions relating to the Enterprise. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Trustee or of the Owners of not Less than ten percent (10%) of the principal amount of a series of Bonds then Outstanding or their representatives authorized in writing. (b) The City will annually prepare and file with the Trustee within two hundred seventy (270) days after the close of each Fiscal Year so long as any of the Bonds are Outstanding-- (1) an audited financial statement for the City (prepared in accordance with Generally Accepted Accounting Principles) for the preceding Fiscal Year, together with 15