8D Consent 2007 0416 - Laserfiche WebLink

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subject to a deductible clause of not to exceed ten percent (10%) of said replacement cost for anyone loss to the insured improvements. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and such insurance may be maintained in whole or in part in the form of the participation by the City in a joint powers agency or other program providing pooled insurance; provided that such insurance may not be maintained in the form of self-insurance. Rental Interruption Insurance. The Lease Agreement further requires the City to cause to procure and maintain, for the benefit of the Authority, rental interruption insurance to cover loss, total or partial, of the rental payments as a result of any of the hazards covered by the casualty insurance, in an amount at least equal to the maximum Lease Payments payable with respect to the improvements during the current or any future twenty-four (24) month period. . Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and such insurance may be maintained in whole or in part in the form of the participation by the City in a joint powers agency or other program providing pooled insurance; provided that such insurance may not be maintained in the form of self-insurance. The proceeds of such insurance shall be paid to the Trustee and shall be credited towards the payment of the Lease Payments in the order in which such Lease Payments come due and payable. Title Insurance. The Lease Agreement also requires the City to obtain a title insurance policy insuring the City's leasehold estate hereunder in the Leased Premises, subject only to Permitted Encumbrances, in an amount at least equal to the aggregate original principal amount of the Certificates, All Net Proceeds received under any such title insurance policy shall be deposited with the Trustee in the Lease Payment Fund and shall be credited towards the prepayment of the remaining Lease Payments. Form of Policies and Net Proceeds of Insurance. Each above-described policy of insurance shall name the Authority, the City and the Trustee as insureds and the Trustee as loss payee so as to provide that all proceeds thereunder shall be payable to the Trustee. Unless otherwise consented to by the Insurer in writing, each policy of insurance for rental interruption and casualty shall be provided by a commercial insurer rated A by AM Best & Company or in the two highest rating categories of S&P or Moody's. The City shall payor cause to be paid when due the premiums for all insurance policies required by the Lease Agreement. All such policies shall provide that the Trustee shall be given thirty (30) days' prior notice of expiration, any intended cancellation thereof or reduction of the coverage provided thereby. The Net Proceeds of any insurance award resulting from any damage to or destruction of the Leased Premises by fire or other casualty shall be paid to the Trustee. In accordance with the Trust Agreement, the Trustee shall deposit such Net Proceeds in the Insurance and Condemnation Fund established under Trust Agreement, to be applied as set forth in the Trust Agreement. See "THE CERTIFICATES - Prepayment." Eminent Domain. The Net Proceeds of any eminent domain award resulting from any eminent domain proceedings shall be paid to the Trustee. In accordance with the Trust Agreement, the Trustee shall deposit such Net Proceeds in the Insurance and Condemnation Fund established under the Trust Agreement, to be applied as follows: (a) If the City has given written notice to the Trustee of its determination that (i) such eminent domain proceedings have not materially affected the operation of the Leased Premises or the ability of the City to meet any of its obligations with respect to the Leased Premises under the Lease, and (ii) such proceeds are not needed for repair or rehabilitation of the Leased -14-