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18 <br />Insurance; Net Proceeds; Condemnation Awards <br />Insurance. Under the 2024 Installment Purchase Contract the City is required to procure <br />and maintain insurance on the Enterprise with commercial insurers or through participation in a <br />joint powers insurance authority, in such amounts, with such deductibles and against such risks <br />(including accident to or destruction of the Enterprise) as are usually insurable in connection with <br />similar enterprises. <br />In the event of any damage to or destruction of the Enterprise caused by the perils covered <br />by such insurance, the Net Proceeds of such insurance shall be deposited by the City in an <br />Insurance and Condemnation Fund to be established and held by the City and applied to the <br />repair, reconstruction or replacement of the damaged or destroyed portion of the Enterprise to <br />the extent required to comply with the maintenance and operation covenant of the 2024 <br />Installment Purchase Contract. The City shall cause such repair, reconstruction or replacement <br />to begin promptly after such damage or destruction shall occur and to continue and to be properly <br />completed as expeditiously as possible, and shall pay out of the Net Proceeds of such insurance <br />all costs and expenses in connection with such repair, reconstruction or replacement so that the <br />same shall be completed and the Enterprise shall be free and clear of all liens and claims. If the <br />Net Proceeds received by reason of any such loss shall exceed the costs of such repair, <br />reconstruction or replacement that is required to comply with the maintenance and operation <br />covenant of the 2024 Installment Purchase Contract, the excess shall be applied to any lawful <br />purpose of the Enterprise (subject to the terms of the 2024 Installment Purchase Contract), <br />including (i) the payment of 2024 Installment Payments and payments on any Parity Obligations, <br />(ii) prepayment or discharge of 2024 Installment Payments and payment on any Parity Obligations <br />as provided in the section of the 2024 Installment Purchase Contract governing prepayments of <br />2024 Installment Payments and similar provisions of the documents governing Parity Obligations <br />and (iii) the payment of capital costs of improvements to the Enterprise. <br />“Net Proceeds” means, when used with respect to any insurance or condemnation award, <br />the proceeds from such insurance or condemnation award remaining after payment of all <br />reasonable expenses (including attorneys’ fees) incurred in the collection of such proceeds. <br />The City also agrees in the 2024 Installment Purchase Contract to procure and maintain <br />commercial general liability insurance covering claims against the City for bodily injury or death, <br />or damage to property and worker’s compensation insurance to cover all persons employed in <br />connection with the Enterprise. <br />Any policy of insurance required under the 2024 Installment Purchase Contract may be <br />maintained by the City in the form of self-insurance, subject to the conditions set forth in the 2024 <br />Installment Purchase Contract. See “APPENDIX D – Summary of Principal Legal Documents” for <br />a summary of such conditions. <br />Condemnation Awards. If all or any part of the Enterprise shall be taken by eminent <br />domain proceedings, the Net Proceeds thereof shall be deposited in an Insurance and <br />Condemnation Fund established and held by the City and applied, subject to the terms of the <br />2024 Installment Purchase Contract, as follows: If the City has determined that it needs to use <br />the Net Proceeds to make additions, betterments, extensions or improvements to the Enterprise <br />in order for the City to comply with the maintenance and operation covenant of the 2024 <br />Installment Purchase Contract, the City shall use such Net Proceeds to make such additions, <br />betterments, extensions or improvements. If such Net Proceeds shall exceed the costs of such <br />8.A. - Page 32 of 255 <br />660