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<br />15 <br />the maximum amount of Lease Payments coming due and payable during any consecutive two <br />Fiscal Years during the term of the Lease. The Net Proceeds of such insurance, if any, will be <br />paid to the Trustee and deposited in the Bond Fund, for application as a credit towards the <br />payment of the Lease Payments allocable to the insured improvements as the same become <br />due and payable. <br />The Lease also requires the City to maintain title insurance, standard commercial <br />general liability insurance and casualty insurance with respect to the Leased Property. Any Net <br />Proceeds under such title insurance policy will be deposited with the Trustee in the Bond Fund, <br />to be credited towards the prepayment of the remaining Lease Payments under the Lease. The <br />required casualty insurance will have a coverage amount at least equal to the lesser of (a) <br />100% of the replacement value of the insured buildings, or (b) 100% of the aggregate principal <br />amount of the Bonds, and may be subject to such deductibles as the City deems adequate and <br />prudent. <br />No assurance can be given that the proceeds of any insurance or condemnation award <br />will be sufficient under all circumstances to repair or replace the Leased Property or to prepay <br />all of the Lease Payments with respect to the Leased Property. Also, the City makes not <br />representation as to the sufficiency of any insurance awards or the adequacy of any self– <br />insurance to pay, when and as due, amounts payable under the Lease or the Bonds. <br />See APPENDIX B – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” for a <br />description of provisions of the Lease Agreement and the Trust Indenture relating to the <br />application of proceeds from the casualty insurance or condemnation awards. <br />See “RISK FACTORS – Abatement.” <br />No Reserve Account <br />Neither the City nor the Authority will create or maintain a debt service reserve account <br />with respect to the Lease Payments or for the Bonds. <br />Remedies <br />If the City defaults in performance of its obligations under the Lease, the Authority or the <br />Trustee, as assignee of the Authority, may either terminate the Lease and re–enter and re–let <br />all or a portion of the Leased Property or may retain the Lease and hold the City liable for all <br />payments on an annual basis and still have the right to re–enter and re–let the Leased Property <br />without effecting a surrender of the Lease. Additionally, the Trustee may pursue remedies at <br />law or in equity to enforce the Lease. <br />Although the Lease and the Indenture provide that the Trustee, as assignee of the <br />Authority, may take possession of the Leased Property if there is a default by the City, and the <br />Lease provides that the Trustee may have such rights of access to the Leased Property as may <br />be necessary to exercise any remedies, portions of the Leased Property may not be easily <br />recoverable and, even if recovered, could be of little value to others. There can be no <br />assurance that the Leased Property can be re–let for an amount equal to all outstanding Lease <br />Payments. Due to the essential nature of the governmental functions of the Leased Property, it <br />is not certain whether a court would permit the exercise of the remedies of repossession and <br />re–letting with respect thereto. In addition, the remedy of repossession and re–letting may <br />prove to be unavailable or not economically viable with respect to all or portions of the Leased