AgdaPkt 2005-01-24 - Laserfiche WebLink

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loan agreement memorializing said loan on a parity basis with the payment of Installment Payments. Insurance; Net Proceeds; Condemnation Awards Insurance. Under the Installment Purchase Contract the City is required to procure and maintain insurance on the Enterprise with commercial insurers or through participation in a joint powers insurance authority, in such amounts, with such deductibles and against such risks (including accident to or destruction of the Enterprise) as are usually insurable in connection with similar enterprises. I n the event of any damage to or destruction of the Enterprise caused by the perils covered by such insurance, the proceeds of such insurance shall be applied to the repair, reconstruction or replacement of the damaged or destroyed portion of the Enterprise. 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 payout of the 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 proceeds received by reason of any such loss shall exceed the costs of such repair, reconstruction or replacement, the excess shall be applied to the prepayment of Installment Payments. 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 Install ment Pu rchase Contract. Condemnation A wards. 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 obtains [and files with the Insurer] a Certificate of the City 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) [the Insurer], on the basis of such certificate, 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 hereunder will not be substantially impaired (which determination shall be final and conclusive); or if [the Insurer] fails to make such determination but waives it in writing to the Trustee then the City shall promptly proceed with the acquisition of such additions, betterments, extensions or improvements 16