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<br />16 <br />In the case of abatement due to damage or destruction of the Leased Property, such abatement will continue for the period commencing with such damage or destruction and ending <br />with the substantial completion of the work of repair or reconstruction. <br />Notwithstanding the foregoing, the Lease Payments will not be subject to abatement to the extent that proceeds of insurance against accident to or destruction of the Leased Property <br />collected by the City or the Authority in the event of any such accident or destruction (including rental interruption insurance) or amounts in the Bond Fund are available to pay Lease Payments which would otherwise be abated. <br />Proceeds of Rental Interruption Insurance. Under the Lease, the City agrees that during any period of abatement with respect to all or any part of the Leased Property, the Authority will use the proceeds of rental interruption insurance maintained under the Lease to <br />make debt service payments on the Bonds. See “− Covenants to Maintain Insurance − Rental Interruption Insurance.” <br /> Covenants to Maintain Insurance <br />Liability and Property Damage Insurance. Under the Lease, the City covenants to <br />maintain or cause to be maintained throughout the Term of the Lease, but only if and to the <br />extent available from reputable insurers at reasonable cost in the reasonable opinion of the City, a standard commercial general liability insurance policy or policies in protection of the Authority, <br />the City, and their respective members, officers, agents, employees and assigns. Said policy or <br />policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by <br />reason of the operation of the Leased Property. Such policy or policies shall provide coverage in such liability limits and be subject to such deductibles as the City deems adequate and prudent. The proceeds of such liability insurance must be applied toward extinguishment or <br />satisfaction of the liability with respect to which paid. Casualty Insurance. Under the Lease, the City further covenants to procure and <br />maintain, or cause to be procured and maintained, throughout the Term of the Lease, casualty insurance against loss or damage to all buildings situated on the Leased Property, in an amount <br />at least equal to the lesser of (a) 100% of the replacement value of the insured buildings, or (b) <br />100% of the aggregate principal amount of the Outstanding Bonds. Such insurance must, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle <br />damage, smoke and such other hazards as are normally covered by such insurance, and must <br />include earthquake insurance if available at reasonable cost from reputable insurers in the judgment of the City. Such insurance may be subject to such deductibles as the City deems <br />adequate and prudent. Rental Interruption Insurance. The City further covenants to procure and maintain, or <br />cause to be procured and maintained, throughout the Term of the Lease, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of any portion of the Leased Property constituting buildings or other improvements as a result of any of the hazards <br />covered in the insurance required by the Lease relating to the casualty insurance, in an amount at least equal to the maximum such Lease Payments coming due and payable during any consecutive two Fiscal Years during the term of the Lease. The Net Proceeds of such <br />insurance, if any, must be paid to the Trustee and deposited in the Bond Fund, to be applied as a credit towards the payment of the Lease Payments allocable to the insured improvements as <br />the same become due and payable.