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percent (100 %) of the full replacement cost of such Project as <br />certified by a registered architect, a registered engineer, or <br />professional appraisal engineer, selected by the Authority with the <br />approval of the Trustee, on the effective date of this Lease and on <br />or . before the first day of April of each year thereafter; provided <br />that such certification shall not be required so long as the amount <br />of such insurance shall be in an amount at least equal to the option <br />to purchase price. Such appraisal may be based upon a recognized <br />index of conversion factors. In no event shall the insurance be in <br />an amount which causes the Lessee to be a co- insurer for the <br />Project. Such insurance may contain a provision for a deductible in <br />an amount not exceeding $25,000. Lessee agrees to pay the deductible <br />amount of any loss to the Authority. A blanket public institutional <br />property insurance form may be used if: <br />(a) the insurance on the Project is not less than the amount <br />required by this Section, <br />(b) the Lessee subordinates its claim for damage or <br />destruction to other buildings or improvements to claims <br />for damage or destruction of the Project, and <br />(c) the insurance proceeds related to damage to or <br />destruction of the Project are payable to the Trustee. <br />During the full term of this Lease, the Lessee will also, at its own <br />expense, maintain rental or rental value insurance in an amount at <br />least equal to the full rental specified in Section 4 for a period of <br />two (2) years against physical loss or damage of the type insured <br />against pursuant to the preceding requirements of this Section. Such <br />policies shall be for the benefit of and shall be made payable to the <br />Trustee. <br />Section 10. Use of Insurance and Condemnation Proceeds. <br />Proceeds of insurance against damage to or destruction of the Project <br />or proceeds of any condemnation of the Project shall be paid to and <br />held by the Trustee and used to pay for reconstruction or replacement <br />of the Project in accordance with plans approved by the Authority and <br />the Lessee, unless the Lessee elects- to exercise its option to <br />purchase. <br />Section <br />11. Liability Insurance. The Lessee shall, <br />at all <br />times during <br />the full term of <br />this Lease, keep in effect, <br />public <br />liability and <br />property damage <br />insurance, insuring the Lessee, the <br />Authority and <br />the Trustee in amounts customarily carried for <br />similar <br />properties. <br />Such insurance <br />may be provided under the <br />public <br />liability self <br />insurance program <br />of the city of South Bend. <br />Section 12. General Insurance Provisions. All insurance <br />policies required by Sections 9 and 11, other than insurance provided <br />am <br />