HomeMy WebLinkAbout0018
1:9
any-insurance carried with respect to the loss sustained,
and provided further, that the indemnity shall not be effective
for damages that result from gross negligence or intentional ;
wrongdoing on the part of the Trustee, the Zssuer, the Board
of County Commissioners of the Issuer and each individual
member thereaf nor their agents~or employees. To this end,
the Company will provide for and insure, in the public liability
policies required herein, not only its own liability in respect
of the matters there mentioned but also the liability herein
assumed to the extent that such insurance is obtainable.
ARTICLE V ~
;
DAMAGE, DESTRUCTION AND CONDEMNATION
Section 5.01. OBLIGATION IN EVENT OF DAMAGE OR DESTRUCTION.
So long as any of the Bonds remain outstanding under the terms
of the Resolution, if the Mortgaged Property_or the Project or j
any of the equipment is destroyed (in whole or in part) or is
damaged by fire or other casualty, the Gompany shall be obligated ;
to continue to pay the installments upon the purchase price as ~
specified in Section 3.03 hereof. : ~
i
(A) If the claim for loss resulting from such destruction '
or damage is not greater than $50,000 the Company wi1Z (1) promptly ~
repair, rebuild or restore the property damaged or destroyed to
substantially the same condition as it existed prior to the
event causing such damage or destruction, with such changes,
alterations and n2odifications (including the substitution and
addition of other property) as may be desired by the Company, or
(2) promptly proceed as provided by paragraphs (A) or (C) of
Section 4.02 hereof; and either subparagraphs (1) or (2) of
this paragraph will be accomplished in such a manner as will
not impair operating unity or productive capacity or the value
of the Mortgaged Property as an industrial plant; and the Company
will pay the costs thereof and will be entitled.to retain all
proceeds of insurance in respect of such claim.
(B) If clai.m for loss resulting from such destruction
or damage is in excess of $50,000, the Company shall promptly
give written notice thereof to the Trustee. All proceeds
of insurance resulting from clair.is for such losses shall be
paid to and held by the Trustee, whereupon (1) the Company
will (a) proceed promptly to repair, rebuild or restore
the property damaged or destroyed to substantially the same
condition as existed prior to the event causing such damage or
destruction, with such changes, alteratior~s and modifications
(including the substitution and addition of other property)
as may be desired by the Company and as c,~ill not materially
impair operating unity or productive capacity or the value of the
Mortgaged Property as an industrial plant, (b) the Trustee will
apply so much ~as may b~ necessary of the proceeds of such
insurance to payment of the costs of such repairs, rebuilding
or restoration either on completion thereof or as the work
progresses, upon certification by the Company and the
Consultant of such costs for work in place and provided that
the Trustee has no knowledge of any default which has occurred
under this Agreement which has not been remedied, and (c) in
the event said insurance proceeds are not sufficient to pay
16 -
1~ , ~
0~~3