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01/12/2009 (d) Any payments made, or arrangements to make payments, or expenses incurred by the covered party in relation to the claim, prior to giving notice of the claim to the Authority, shall be the sole responsibility of the covered party, and the Authority shall have no obligation to pay said costs or to reimburse the covered party therefor. (e) As to any claim for which the Authority has accepted responsibility and has so notified the covered party, if the covered party's refusal to change its position prevents settlement of the claim for a reasonable amount, defined as the amount the Authority is willing to pay and the claimant is willing to accept, and increases the covered party's potential liability for damages and. continued defense costs, the covered party shalt pay or shall reimburse the Authority for those defense costs incurred after the claim could have been settled, and for any damages awarded or settlement agreed upon in excess of the amount for which the claim could have been previously settled. 2. Subrogation The Authority shall be subrogated to the extent of any payment hereunder to all the covered parties' rights of recovery thereof and the covered parties shall do nothing after loss to prejudice such right and shall do everything necessary to secure such right. Any amounts so recovered shall be apportioned as follows: (a) The highest layer of coverage shall be reimbursed first and if there be sufficient recoveries then the next highest layer until all recoveries are used up. (b) The expenses of all such recovery proceedings shall be paid before any reimbursements are made. If there is no recovery in the proceedings conducted by the Authority, it shall bear the expenses thereof 3. Bankruptcy or Insolvency Bankruptcy or insolvency of the covered party shall not relieve the Authority of any of its obligations hereunder. 4. Other Coverage If collectible insurance or any other coverage with any insurer, joint powers insurance authority, or other source respectively is available to the covered party covering a loss also covered hereunder (whether on primary, excess or contingent basis), the coverage hereunder shall be in excess of, and shall not contribute with, such other insurance or coverage, provided that this clause does not apply with respect to insurance purchased or coverage obtained specifically to be in excess of this MOC. If the other collectible insurance or other coverage exceeds the covered party's retained limit and the loss is in excess of the amount of other collectible insurance or other coverage, the coverage Me J: \BCJPIA\Admin \Documents \GoverninglMOC's and MPD's\2008- 2009 \Liability /Liability MOC 2008 -2009 FINAL 050808.doc 17 14919 MUFF #505