1988-06-14 Minutes - Laserfiche WebLink

Home Browse Search

K The Authority covenants that during the construction of the Facility it will carry or cause other persons to carry builder's risk insurance at 100% of the insurable value of the Facility, bodily injury insurance in an amount not less than $I million and property damage insurance in an amount not less than $500,000, as specified in the Trust Agreement, and insurance to protect the Authority and contractors from liability under Indiana Workmen's Compensation and Workmen's Occupational Diseases Acts. After completion of the Facility, the Authority will carry insurance on the Facility equal to 100% of the full replacement cost of the Facility and will carry rental value insurance equal to the full rental value of the Facility for two years against physical loss or damage. If the Authority neglects to obtain such insurance, the Trustee may procure such insurance, adding on interest at the highest rate of interest on any of the Bonds when sold, which shall be repaid. by the Authority upon demand and shall constitute an additional indebtedness of the Authority secured by the lien of the Trust Agreement, prior and paramount to the lien of the Bonds and interest thereon. However, the Trustee is not obligated to procure such insurance unless fully indemnified against this expense and furnished with the means to incur such expenses. Per the Lease Agreement, the Commission is obligated to carry sufficient insurance to meet all the aforementioned requirements. The Authority covenants to keep property books of record and account which will be furnished to the Trustee upon request. On or before 120 days after completion of the Facility, the Authority will furnish the Trustee with a full audit and report, certified by an independent certified public accountant. The Trust Agreement further elaborates upon the covenants, requirements, and provisions summarized in this section of the Official Statement. The Trust Agreement contains additional covenants requirements, and provisions regarding the following: Maturities, Form, Issuance, Delivery and Registration of Bonds Redemption of Bonds Remedies in Case of Default Defeasance, Payment, Release Concerning the Trustee Supplemental Agreements Miscellaneous Provisions Excerpts from the Trust Agreement are found in Appendix D of this Official Statement. Persons interested in obtaining the full Trust Agreement may request a copy from: Parker & Jaicomo Attn: Richard L. Hill, Esq. First Bank Building 205 West Jefferson South Bend, Indiana 46601 (219) 2341+149 Funds and Accounts Per the Trust Agreement The Trust Agreement establishes the following funds and accounts. (This information is presented in summary form. For greater detail, please refer to Appendix D.) South Bend Redevelopment Authority Parking Garage Facility Construction Fund. The construction fund shall consist of the following accounts: Construction Account and Bond Account. -5 -