RES 87418 - Laserfiche WebLink

Section 7. Fire, Extended Coverage and Earthquake Insurance. The City shall procure or cause to be procured and maintain or cause to be maintained, throughout the term of this Lease, insurance against loss or damage to any structures constituting any part of Capital Project II by fire and lightning, with extended coverage insurance, vandalism and malicious mischief insurance and sprinkler system leakage insurance, and, following completion of construction, earthquake insurance (but as to such earthquake insurance only if such insurance is available at reasonable cost on the open market from reputable insurance companies). Said extended coverage insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance. Such insurance shall be in an amount equal to the replacement cost (without deduction for depreciation) of all structures constituting any part of Capital Project II, excluding the cost of excavations, of grading and filling, and of the land (except that such earthquake insurance may be subject to a deductible clause of not to exceed ten per cent of said replacement cost for any one loss and except that such other insurance may be subject to deductible clauses for any one loss of not to exceed the lesser of $50,000 or the amount in the Insurance Reserve Fund established pursuant to Section 4(d)), or, in the alternative, shall be in an amount and in a form sufficient (together with moneys in the Certificate Reserve Fund established under Section 4(c) hereof), in the event of total or partial loss, to enable all Certificates then Outstanding (as such term is defined in the Trust Agreement) and attributable to Capital Project II to be prepaid. In the event of any damage to or destruction of any part of Capital Project II, caused by the perils covered by such insurance, the Corporation, except as hereinafter provided, shall cause the proceeds of such insurance to be utilized for the repair, reconstruction or replacement of the damaged or destroyed portion of Capital Project II, and the Trustee shall hold said proceeds separate and apart from all other funds, in a special fund to be designated the "Insurance and Condemnation Fund" to the end that such proceeds shall be applied to the repair, reconstruction or replacement of Capital Project II to at least the same good order, repair and condition as it was in prior to the damage or destruction, insofar as the same may be accomplished by the use of said proceeds. The Trustee shall permit withdrawals of said proceeds from time to time upon receiving the Written Request of the Corporation, stating that the Corporation has expended moneys or incurred liabilities in an amount equal to the F-16 1456S