Laserfiche WebLink
Section 5.10. Insurance <br /> (a) The City will procure and maintain insurance on the Enterprise with <br /> commercial insurers or through participation in a joint powers insurance authority, in such <br /> amounts, with such dedactibles and against such risks (including accident to or destruction of the <br /> Enterprise)as are usually insurable in connection with similar enterprises in the region. <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 /> reconstructiort or replacement of the damaged or destroyed poRion 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 possible, <br /> and shall pay out of the proceeds of such insurance all costs and expenses in connection with <br /> such repair, reconstru�tion or replacement so that the same shall be completed and the Enterprise <br /> shall be free and clear of all liens and claims. If the proceeds received by reason of any such loss <br /> shall exceed the costs of such repair, reconstruction or replacement,the excess shall be apptied to <br /> the prepayment of Installment Payments and payments on any Parity Obligations as provided in <br /> Article VI. <br /> Alternatively, if the proceeds of such insurance are sufficient to enable the City to <br /> retire 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 to <br /> the prepayment of the Installment Payments as provided in Article VI and to the payment of all <br /> 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 /> (b) The City will procure and maintain commercial genera! 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 iri <br /> such amounts and against such risks as are usually covered in connection with similar <br /> - enterprises. <br /> (c) The City will procure and maintain workers' compensation insurance <br /> against 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 /> (d) All policies of insurance required to be maintained herein shall provide <br /> that the Trustee shall be given thirty (30) days' written notice of any intended cancellation <br /> thereof or reduction of coverage provided thereby, provided, however, the Trustee shall not be <br /> responsible for the sufficiency of any insurance herein required. <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 /> 15 <br /> 338529_I.DOC <br />