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<br />14 <br />contracts for the use of the Enterprise and all other contracts affecting or involving the <br />Enterprise to the extent that the City is a party thereto. <br /> <br />Section 5.10. Insurance. <br /> <br />(a) The City will procure and maintain insurance on the Enterprise with commercial <br />insurers or through participation in a joint powers insurance authority, in such amounts, with <br />such deductibles and against such risks (including accident to or destruction of the Enterprise) <br />as are usually insurable in connection with similar enterprises in the region. <br /> <br />In the event of any damage to or destruction of the Enterprise caused by the perils <br />covered by such insurance, the proceeds of such insurance shall be applied to the repair, <br />reconstruction or replacement of the damaged or destroyed portion of the Enterprise. The City <br />shall cause such repair, reconstruction or replacement to begin promptly after such damage or <br />destruction shall occur and to continue and to be properly completed as expeditiously as <br />possible, and shall pay out of the proceeds of such insurance all costs and expenses in <br />connection with such repair, reconstruction or replacement so that the same shall be completed <br />and the Enterprise shall be free and clear of all liens and claims. If the proceeds received by <br />reason of any such loss shall exceed the costs of such repair, reconstruction or replacement, <br />the excess shall be applied to the prepayment of Installment Payments and payments on any <br />Parity Obligations as provided in Article VI. <br /> <br />Alternatively, if the proceeds of such insurance are sufficient to enable the City to retire <br />all outstanding Parity Obligations and the Installment Payments and all other amounts due <br />hereunder and under the Indenture, the City may elect not to repair, reconstruct or replace the <br />damaged or destroyed portion of the Enterprise, and thereupon such proceeds shall be applied <br />to the prepayment of the Installment Payments as provided in Article VI and to the payment of <br />all other amounts due hereunder and under the Indenture, and as otherwise required by the <br />documents pursuant to which such Parity Obligations were issued. <br /> <br />(b) The City will procure and maintain commercial general liability insurance <br />covering claims against the City for bodily injury or death, or damage to property, occasioned by <br />reason of the ownership or operation of the Enterprise, such insurance to afford protection in <br />such amounts and against such risks as are usually covered in connection with similar <br />enterprises. <br /> <br />(c) The City will procure and maintain workers’ compensation insurance against <br />liability for compensation under the Workers’ Compensation Insurance and Safety Act of <br />California, or any act hereafter enacted as an amendment or supplement or in lieu thereof, such <br />insurance to cover all persons employed in connection with the Enterprise. <br /> <br />(d) All policies of insurance required to be maintained herein shall provide that the <br />Trustee shall be given thirty (30) days’ written notice of any intended cancellation thereof or <br />reduction of coverage provided thereby, provided, however, the Trustee shall not be responsible <br />for the sufficiency of any insurance herein required. <br /> <br />(e) In lieu of obtaining insurance coverage as required by this Section, such <br />coverage may be maintained by the City in the form of self-insurance so long as an Insurance <br />Consultant certifies annually to the Trustee and the Authority that the City’s general insurance <br />reserves are actuarially sound and are adequate to provide the necessary coverage and that <br />such reserves are held in a separate trust fund by an independent trustee (which certification <br />8.C. - Page 176