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7¿-~ Alternatively, if the proceeds of such insurance are sufficient to enable the City to retire all outstanding Parity Obligations and the Bonds 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 the Installment Payment Contract and to the payment of all other amounts due thereunder and under the Indenture, and as otherwise required by the documents pursuant to which such Parity Obligations were issued. The City will also procure and maintain commercial general liability insurance covering claims against the City for bodily injury or death, or damage to property and worker's compensation insurance to cover all persons employed in connection with the Enterprise. Any policy of insurance required under the Installment Purchase Contract may be maintained by the City in the form of self-insurance, subject to the conditions set forth in the Installment Purchase Contract. Condemnation Awards. If all or any part of the Enterprise shall be taken by eminent domain proceedings, the Net Proceeds thereof shall be applied as follows: (a) If (1) the City prepares a report showing (i) the estimated loss of annual Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent domain proceedings, (ii) a general description of the additions, betterments, extensions or improvements to the Enterprise proposed to be acquired by the City from any Net Proceeds, and (iii) an estimate of the additional annual Net Revenues to be derived from such additions, betterments, extensions or improvements, and (2) on the basis of such certificate, the City determines that the estimated additional annual Net Revenues will sufficiently offset the estimated loss of annual Net Revenues resulting from such eminent domain proceedings so that the ability of the City to meet its obligations under the Installment Purchase Contract will not be substantially impaired (which determination shall be final and conclusive); then the City shall promptly proceed with the acquisition of such additions, betterments, extensions or improvements substantially in accordance with such report and such Net Proceeds shall be applied for the payment of the costs of such acquisition, and any balance of such Net Proceeds not required by the City for such purpose shall be applied to prepay the Installment Payments and any Parity Obligations, on a pro rata basis in the manner provided in the Installment Purchase Contract and in the instruments authorizing such Parity Obligations. (b) If the conditions described above are not met, then such Net Proceeds shall be applied to the prepayment of Installment Payments. CITY OF REDWOOD CITY PUBLIC FINANCING AUTHORITY The Authority is a joint exercise of powers authority duly organized and existing under the laws of the State of California and a Joint Exercise of Powers Agreement dated as of June 1O, 1991. The Authority was formed for the purpose of implementing the construction, acquisition, maintenance and improvement of public facilities and infrastructure within the City. Among the powers expressly granted to the Authority is the power to acquire property and to borrow money to provide funds for the construction, acquisition, maintenance or improvement of public facilities and infrastructure and to issue in its name revenue bonds to evidence the indebtedness created by such borrowing. The City Council of the City acts as the governing body of the Authority, and the Mayor acts as its Chairperson. 17