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shall be no resulting abatement, di.minution or delay in the
payments of the installments upon the purchase price of the
Project required hereby to be paid to the Trustee by the _
Company. _
5ection 2.02. INSURANCE DURING CONSTRUCTION. The $
Company shall maintain or cause to be maintained in full
force and effect at all times during the construction and
equipping of the Project the following insurance on the Mortgaged E
Property and the Project (except that such insurance provisions ~
do not apply to that construction completed prior to the !
adogtion of the Resolution by the Issuer):
(A) builder's risk insurance against loss through
vandalism, fire and other causes, limited only as may be
provided in the standard form of extended coverage insurance,
to the full insurable value of all improvements, machinery
and equipment, with not greater than $100,000 deductible,
with loss payable clauses to the Issuer, the Company and
the Trustee as their respective interests may appear;
(B) general public liability insurance against claims
for bodily injury or death occurring upon, in or about the
Mortgaged Property and the Project, affording protection
to the limit of not less than $500,000 in respect of bodily
injury or death to any one person and not less than $1,000,000
in respect of any one accident;
(C) property damage insurance against claims for
damage to property occurring upon, in or about the Mortgaged
Property and the Project affording protection to the limit
of not less than $100,000 in respect of damage to the property
of any one owner; and
(D) such workmen's compensation or employers' liability
j insurance as may be required by law.
i
~ Th~ Company may "self-insure" any of the risks designated
~ in this Section, provided the Issuer and the Trustee agree
to such self-insuring. In the event the Company secures
~ commercially available insurance to cover such risks, the
premiums for such insurance which are applicable and apportionable
to the Project shall be considered to be a part of the cost
of the Project. All risk of loss shall be upon the Company
and the Trustee shall have an interest in all proceeds upon
any loss to the extent of the balance of the purchase price
of the Project pursuant to Section 3.02 of this Agreement.
Section 2.03. COST OF PROJECT. It is estimated that
the cost of the Project will not exceed the net proceeds
of the sale of the Bonds (exclusive of accrued interest)
plus any income or other gains from investments of moneys
in the Construction Fund hereinafter referred to, and less
any losses on investments of moneys in the Construction Fund.
The net proceeds from the sale of the Bonds, as that expression
~ is used in this Agreement, shall mean the amount of the gross
~ proceeds remaining after payment of the costs anc~-expenses
~ of initiating (but not constructing) the Project, including,
without limiting the generality of the foregoing, documentary
stamps, if any, intangible and other taxes, if any, recording
fees and fees and expenses of the Trustee including attorneys'
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