1994-05-17 Resolution 91 - Laserfiche WebLink

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certificate of the Authority. • Sec. 5.15. The Authority covenants that wh enever there are sufficient funds held by the Trustee in the Sinking Fund and /or Operation and Reserve Fund to pay the principal, redemption premiums and interest to the next interest payment date on all outstanding Bonds, it will call all outstanding Bonds for redemption and hereby consents and directs the Trustee to call all outstanding Bonds for redemption. Sec. 5.16. (a) The Authority, at its cost and expense, shall obtain on the date of original issuance of the Bonds a commitment for an owner's policy of-title insurance insuring the marketable indefeasible fee simple title or right -of -way easement of the Authority in the Project in an amount equal to the costs of construction of the Project. (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 collected or recovered under the owner's policies referred to above, less 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 • -28-