1990-05-15 Resolution 22 - Laserfiche WebLink

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provided however, that in the case of those portions of the Project for which the final costs of acquisition and construction cannot • be precisely defined as of the date of original issuance of the Bonds,. the Authority shall apply for and use its best efforts to obtain an increase in the amount of the commitment for title insurance pertaining to those portions of the Project in an amount equal to the final costs. of acquisition and construction upon completion of such acquisition and construction. As the real property interests constituting part of the Project are obtained by the Authority, all such policies of title insurance obtained pursuant to such commitments shall be in substantial conformity to the title insurance commitments attached hereto as Exhibits B, C, D and E and incorporated herein by reference, free of all standard (preprinted) exceptions and all special exceptions, other than Permitted Encumbrances (as such term is defined in the Lease). (b) The Authority hereby assigns to the Trustee all proceeds payable under the owner's policies referred to in this Section 5.16 and all of the insured's rights thereunder, the full amount of which proceeds shall be paid directly to the Trustee by the title insurers referred to above. The Trustee is hereby authorized to demand, collect and receipt for and recover any and all insurance moneys which may become due and payable under the owner's policies and to prosecute all necessary actions in the courts to recover any such insurance moneys. The Trustee may, however, accept any settlement or adjustment which the Trustee may deem it advisable to make with such title insurers. The Trustee may reimburse itself from any such insurance money for the costs and expenses incurred by the Trustee in connection with (i) demanding, collecting and recovering the insurance moneys and (ii) any related court action, settlement or adjustment, including without limitation, attorney fees (the "Collection Costs"). All insurance moneys collectedess recovered under the owner's policies referred to above, Collection Costs, shall be used, at the Trustee's option, either (i) to cure title defects and/or obtain marketable, indefeasible fee simple title or a right-of-way easement to the Project or (ii) redeem the Bonds or portions thereof on the earliest possible redemption date. ARTICLE VI. Insurance Sec. 6.01. The Authority covenants that during the construction of the Project, it will carry or will cause other persons to carry for its benefit the following kinds of insurance: (a) Builder's risk insurance in the amount of one hundred percent (100%) of the insurable value of the Project -27-