Agda Pkt 2024.08.26 Regular Meeting

Browse Search

17 in an Insurance and Condemnation Fund to be established and held by the City and applied to the repair, reconstruction or replacement of the damaged or destroyed portion of the Enterprise to the extent required for the City to comply with Section 5.07. The City shall cause such repair, reconstruction or replacement to begin promptly after such damage or destruction shall occur and to continue and to be properly completed as expeditiously as possible, and shall pay out of the Net Proceeds of such insurance all costs and expenses in connection with such repair, reconstruction or replacement so that the same shall be completed and the Enterprise shall be free and clear of all liens and claims. If the Net Proceeds received by reason of any such loss shall exceed the costs of such repair, reconstruction or replacement that is required for the City to comply with Section 5.07, the excess shall be applied to any lawful purpose of the Enterprise, including (i) the payment of Installment Payments and payments on any Parity Obligations, (ii) prepayment or discharge of Installment Payments and payments on any Parity Obligations as provided in Article VI and similar provisions of Parity Instruments and (iii) the payment of capital costs of improvements to the Enterprise. If the City has determined that any Net Proceeds received by reason of a loss are not required to be applied to the repair, reconstruction or replacement of the damaged or destroyed portion of the Enterprise in order for the City to comply with Section 5.07, then the City shall apply the Net Proceeds to any lawful purpose of the Enterprise, including (i) the payment of Installment Payments and payments on any Parity Obligations, (ii) prepayment or discharge of Installment Payments and payments on any Parity Obligations as provided in Article VI and similar provisions of Parity Instruments and (iii) the payment of capital costs of improvements to the Enterprise. Notwithstanding the foregoing, to the extent the Net Proceeds relate to improvements financed by the Bonds, such time as the Bonds have been redeemed or paid at maturity, (i) until any use of such related Net Proceeds shall comply with Section 5.05, (ii) such related Net Proceeds may not pay debt service on or prepay, discharge or redeem any Parity Obligations, (iii) if such related Net Proceeds will be used to pay debt service on or prepay, discharge or redeem the Installment Payments and the Bonds, they cannot be invested at a yield that is greater than the arbitrage yield of the Bonds and (iv) if the Bonds are refunded by tax-exempt refunding bonds (“Refunding Bonds”), such related Net Proceeds in the Insurance and Condemnation Fund shall be transferred to an insurance and condemnation fund established for the Refunding Bonds and used for purposes not inconsistent with Section 5.05. (b) The City will procure and maintain commercial general liability insurance covering claims against the City for bodily injury or death, or damage to property, occasioned by reason of the ownership or operation of the Enterprise, such insurance to afford protection in such amounts and against such risks as are usually covered in connection with similar enterprises. (c) The City will procure and maintain workers’ compensation insurance against liability for compensation under the Workers’ Compensation Insurance and Safety Act of California, or any act hereafter enacted as an amendment or supplement or in lieu thereof, such insurance to cover all persons employed in connection with the Enterprise. (d) All policies of insurance required to be maintained herein shall provide that the Trustee shall be given thirty (30) days’ written notice of any intended cancellation thereof or reduction of coverage provided thereby, provided, however, the Trustee shall not be responsible for the sufficiency of any insurance herein required. 8.A. - Page 185 of 255 813