1992-06-18 Resolution 56 - Laserfiche WebLink

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ARTICLE VI. Insurance Sec. 6.01. The Authority covenants that, it will carry or cause to be carried: (a) Insurance on the Project against physical loss or damage thereto, however caused, with such exceptions as are ordinarily required by insurers of buildings or facilities of a similar type, which insurance shall be in an amount at least equal to the greater of (i) the option to purchase price under the Lease, or (ii) one hundred percent (100%) of the full replacement cost of the Project as certified by a registered architect, a registered engineer, or a professional appraisal engineer selected by the Authority with the approval of the Trustee, on the effective date of such insurance and on or before April 1 of each year thereafter (such appraisal may be based on a recognized index of conversion factors); provided that such certification shall not be required so long as the amount of such insurance shall be in an amount at least equal to the option to purchase price under the Lease; such insurance may contain a provision for a deductible in an amount not exceeding $25,000; a blanket public institutional property insurance form may be used if: (i) the insurance on the Project is not less than the amount required by this Section 6.01; (ii) the • Commission subordinates its claim for damage or destruction to other buildings or improvements to claims for damage or destruction of the Project; and (iii) the insurance proceeds related to damage to or destruction of the Project are payable to the Trustee; and (b) Rent or rental value insurance in an amount least equal to the full rental value of the Project for a period of two (2) years against physical loss or damage of the type insured against under Section 6.02(a) above; and (c) Public liability and property damage insurance in amounts customarily carried for similar properties; provided however, that, notwithstanding Section 6.02, such insurance may be provided under the public liability self insurance program of the City of South Bend. Sec. 6.02. Except as provided in Section 6.01(c), such insurance policies shall be maintained in 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. A copy of such policies referred to in Section 6.01 and the architect's or engineer's certificates referred to in Section 6.01(a) shall be deposited with the Trustee. -24-