1994-05-17 Resolution 91 - Laserfiche WebLink

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(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 6.02; (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 Sec. 6.02(a) above; and (c) Public liability and property damage insurance in amounts customarily carried for similar properties; provided however, that, notwithstanding Sec. 6.03, such insurance may be provided under the public liability self insurance program of the City of South Bend. Sec. 6.03. Except as provided in Sec. 6.02(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 Sec. 6.02 and the architect's or engineer's certificates referred to in Sec. 6.02(a) shall be deposited with the Trustee. A schedule of such policies shall be deposited with the Trustee. Such schedule shall contain the names of the insurers, the amounts of each policy, the character of the risk insured against, the expiration date of each policy, the premium paid thereon, and any other pertinent data. Sec. 6.04. In case the Authority shall at any time refuse, neglect or fail to obtain and furnish such certificate or to effect insurance as aforesaid, the Trustee may, in its discretion, procure such certificate and /or such insurance, and all moneys paid by the Trustee for such certificate and /or insurance, together with interest thereon at the highest rate of interest on any of the Bonds when sold, whether or not then outstanding, shall be repaid by the Authority upon demand, and shall constitute an additional indebtedness of the Authority secured by the lien of this Agreement, prior and paramount to the lien hereunder of said Bonds and interest thereon. The Trustee, however, shall not be obligated to effect such insurance unless fully indemnified against the • -30-