2008-05-21 Resolution 167 - Laserfiche WebLink

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(b) the Lessee subordinates its claim for damage or destruction to other buildings or improvements to claims for damage or destruction of the 2008 Project, and (c) the insurance proceeds related to damage to or destruction of the 2008 Project are payable to the Trustee. • During the full 2008 Term, the Lessee will also, at its own expense, maintain rental or rental value insurance in an amount at least equal to the full rental specified in Section 4 for a period of two (2) years against physical loss or damage of the type insured against pursuant to the preceding requirements. of this Section. Such policies shall be Tor the benefit of and shall be made payable to the Trustee. Section 10. Use of Insurance and Condemnation Proceeds. Proceeds of insurance against damage to or destruction of the 2008 Project or proceeds of any condemnation of the 2008 Project shall be paid to and held by the Trustee and used to pay for reconstruction or replacement of the 2008 Project in accordance with-plans approved by the Authority and the Lessee, unless the Lessee elects to exercise its option to purchase.: . Section 11. Liability Insurance. The Lessee shall, at all times during the full 2008 Term, keep in effect, public liability and property damage insurance, insuring the Lessee, the Authority and the Trustee in amounts customarily carried for similar properties. Such insurance maybe provided under the public liability self-insurance program of the City of South Bend. Section 12. General .Insurance Provisions. All insurance policies required by Sections 9 and 11, shall be with insurance companies rated B+ or better by A.M. Best Company (or a .comparable .rating service if A.M. Best company ceases to exist or rate insurance companies), and shall be countersigned by an agent of the insurer who is a resident of the State of Indiana, and such policies, or copies thereof, and the certificate of the architect or engineer referred to in Section 9 shall be deposited with the Authority and the Trustee. If, at any time, the Lessee fails to maintain insurance in accordance with Sections 9 and 11, such insurance maybe obtained by the Authority, or may be obtained by the Trustee, and the amount paid for such insurance shall be added to the amount of rental payable by the Lessee under this Second Addendum to Lease; provided, however; that neither the Authority nor the Trustee shall be under any obligation to obtain such insurance, and any action or non-action of the Authority or Trustee in this regard shall not relieve the Lessee of any consequences of a default in failing to obtain such insurance. Section 13. General Covenants. The Lessee. shall not assign this Second Addendum to Lease. The Lessee covenants that, except for Permitted Encumbrances, it will not encumber the 2008 Project, or permit any encumbrance to exist thereon, and that it shall use and maintain the 2008 Project in accordance with the laws and ordinances of the United States of America, the State of Indiana, and all other proper governmental authorities. The Authority agrees that it will, at the request of the Lessee, execute and deliver to or upon the order of the Lessee such instrument or instruments as may be reasonably required by the Lessee in order to subject the 2008 Project, or the Authority's interest therein, to such encumbrances as shall be BDDBOI 5233044v2 - 5 -