1998-10-19 Resolution 130 - Laserfiche WebLink

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• Insurance The Lessee, at its own expense, will keep the Leased Premises insured against physical loss or damage in an amount at least equal to the greater of the full replacement cost of the Leased Premises and the option to purchase price (see "Option to Purchase"), with such exceptions as are ordinarily required by insurers of similar properties. Blanket property insurance may be used if certain conditions in the Lease are satisfied. The Lessee will also, at its own expense, maintain rent or rental value insurance in an amount equal to the full rental value of the Leased Premises for a period of two years against physical loss or damage. Damage and Destruction of Leased Premises The Lease provides that, in the event the Leased Premises are partially or totally damaged or destroyed so as to render the same unfit, in whole or part, for its intended use: (i) it will then be the obligation of the Authority to restore and reconstruct the Leased Premises as promptly as may be done, unavoidable strikes and other causes beyond the control of the Authority excepted; provided, the Authority will not be obligated to restore or reconstruct the Leased Premises if the amount of the proceeds received from the insurance provided for in the Lease plus other money available therefor are insufficient for such purpose, or if the work cannot be completed within the period covered by rental value insurance; and (ii) the rent will. be abated pro rata for the period. during which the Leased Premises or any part thereof is unfit for its intended use. If the Authority is not obligated to restore and reconstruct the Leased Premises pursuant to the provisions described above, the insurance proceeds must be applied to the option to purchase price (see Option to Purchase). In such circumstances, proceeds of insurance will be used for extraordinary redemption of Bonds without premium. Furthermore. in certain circumstances, the Authority may direct application of insurance proceeds to the redemption of Bonds at the then current redemption price. See "SUMMARY OF SELECTED PROVISIONS OF CERTAIN LEGAL DOCUMENTS -- SUMMARY OF SELECTED PROVISIONS OF THE TRUST AGREEMENT -- Insurance -- Use of Proceeds from Insurance." Option to Purchase The Lessee has the right and option, on any rental payment upon 30 days' written notice, to purchase the Leased Premises at a price equal to the amount required to enable the Authority to redeem the Bonds, pay the costs thereof, and liquidate the Authority if it is to be liquidated. In the event the Lessee has not exercised its option to purchase the Leased Premises, then upon expiration of the Lease and full performance by the Lessee of its obligations under the Lease, the Leased Premises will be conveyed by the Authority to the Lessee.