Fire and Extended Coverage Insurance. The County shall procure or cause to be procured and maintain or cause to be maintained, throughout the term of this Sublease, insurance against loss or damage to any structures constituting any part of the Facilities by fire and lightning, with extended coverage insurance, vandalism and malicious mischief insurance and sprinkler system leakage insurance and earthquake insurance, if available on the open market from reputable insurance companies. Said extended coverage insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, flood, riot and riot attending a strike, aircraft, vehicle damage, hail, smoke and such other hazards as are normally covered by such insurance. Such insurance shall be in an amount equal to the replacement cost (without deduction for depreciation) of all structures constituting any part of the Facilities, excluding the cost of excavations, of grading and filling, and of the land (except that such insurance may be subject to deductible clauses for any one loss of not to exceed $[250,000] or comparable amount adjusted for inflation or more in the case of earthquake insurance), or, in the alternative, shall be in an amount and in a form sufficient (together with moneys held under the Trust Agreement), in the event of total or partial loss, to enable the County to prepay all or any part of the Base Rental Payments then unpaid, pursuant to Section 7.02 hereof and to redeem outstanding Bonds. In the event of any damage to or destruction of any part of the Facilities, caused by the perils covered by such insurance, the Authority, except as hereinafter provided, shall cause the proceeds of such insurance to be utilized for the repair, reconstruction or replacement of the damaged or destroyed portion of the Facilities, and the Trustee shall hold said proceeds separate and apart from all other funds, in a special fund to be designated the “Insurance and Condemnation Fund,” to the end that such proceeds shall be applied to the repair, reconstruction or replacement of the Facilities to at least the same good order, repair and condition as they were in prior to the damage or destruction, insofar as the same may be accomplished by the use of said proceeds. The Trustee shall permit withdrawals of said proceeds from time to time upon receiving the Written Request of the Authority, stating that the Authority has expended moneys or incurred liabilities in an amount equal to the amount therein requested to be paid over to it for the purpose of repair, reconstruction or replacement, and specifying the items for which such moneys were expended, or such liabilities were incurred. Any balance of said proceeds not required for such repair, reconstruction or replacement shall be treated by the Trustee as Base Rental Payments and applied in the manner provided by Section 5.02 of the Trust Agreement, provided, however, that if the insurance proceeds were paid to cover damage to property of the County that does not constitute part of the Facilities, as defined herein, including, but not limited to furniture and office equipment, then such proceeds shall be paid to the County. Alternatively, the Authority, at its option, and if the proceeds of such insurance together with any other moneys then available for the purpose are at least sufficient to redeem an aggregate principal amount of outstanding Bonds, equal to the amount of Base Rental attributable to the portion of the Facilities so destroyed or damaged (determined by reference to the proportion which the cost of such portion of the Facilities bears to the cost of the Facilities), may elect not to repair, reconstruct or replace the damaged or destroyed portion of the Facilities and thereupon shall cause said proceeds to be used for the redemption of outstanding Bonds pursuant to the provisions of the Trust Agreement. The Authority and the County shall promptly apply for Federal disaster aid or State of California disaster aid in the event that the Facilities are damaged or destroyed as a result of an earthquake occurring at any time. Any proceeds received as a result of such disaster aid shall be used to repair, reconstruct, restore or replace the damaged or destroyed portions of the Facilities, or, at the option of the County and the Authority, to enable the County to prepay all or any part of the Base Rental Payments then unpaid, pursuant to Section 7.02 hereof, and to redeem outstanding Bonds if such use of such disaster aid is permitted. As an alternative to providing the insurance required by the first paragraph of this Section, or any portion thereof, the County may provide a self insurance method or plan of protection if and to the extent such self insurance method or plan of protection shall afford reasonable coverage for the risks required to be insured against, in light of all circumstances, giving consideration to cost, availability and similar plans or methods of protection adopted by public entities in the State of California other than the County. So long as such method or plan is being provided to satisfy the requirements of this Sublease, there shall be filed annually with the Trustee a statement of an actuary, insurance consultant or other qualified person (which may be the Risk Manager of the County), stating that, in the opinion of the signer, the substitute method or plan of protection is in accordance with the requirements of this Section and, when effective, would afford reasonable coverage for the risks required to be insured against. There shall also be filed a Certificate of the County setting forth the details of such substitute method or plan. In the event of loss covered by any such self insurance method, the liability of the County hereunder shall be limited to the amounts in the self insurance reserve fund or funds created under such method.
Appears in 2 contracts
Fire and Extended Coverage Insurance. The County City shall procure and maintain, or cause to be procured and maintain or cause to be maintained, throughout the term of this SubleaseLease Term, insurance against loss or damage to any structures constituting any part of the Facilities Leased Premises caused by fire and fire, lightning, with extended coverage insurance, vandalism and malicious mischief insurance and sprinkler system leakage insurance mischief, such perils as are typically covered under an extended coverage endorsement insurance, and earthquake and flood insurance (but, with respect to such earthquake and flood insurance, only if such insurance is commercially available on under reasonable terms), which may be maintained in conjunction with any other fire, extended coverage and earthquake and flood insurance maintained by the open market City. In the event such earthquake or flood insurance shall at any time during the Lease Term not be commercially available under reasonable terms, the City shall not be obligated to maintain earthquake or flood insurance during the period of such unavailability; provided, however, that in the event of any uninsured loss to the Leased Premises resulting from reputable insurance companiesearthquake or flood, the City shall apply for and use its best efforts to obtain financial assistance from the United States of America and the State of California to be used for the repair, reconstruction or replacement of the Leased Premises. Said extended coverage property insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, flood, riot and riot attending a strikeriot, aircraft, vehicle damage, hail, smoke and such other hazards perils as are normally covered by such insurance. Such insurance shall be in an amount equal to the greater of (a) the aggregate principal amount of the Outstanding Bonds (to the extent obtainable), or (b) one hundred percent (100%) of the replacement cost (without deduction for depreciation) of all any structures constituting any part of the Facilities, excluding the cost of excavations, of grading and filling, and of the land (except that such Leased Premises. Such insurance may be subject to a deductible clauses for any one loss of not to exceed $[250,000] or comparable amount adjusted 250,000 for inflation or more in any one loss except that, as respects the case above-referenced earthquake coverage, such coverage may be subject to deductible of earthquake insurance), or, in the alternative, shall be in an amount and in a form sufficient (together with moneys held under the Trust Agreement), in the event not to exceed ten percent of total or partial said replacement cost for any one loss, to enable the County to prepay all or any part of the Base Rental Payments then unpaid, pursuant to Section 7.02 hereof and to redeem outstanding Bonds. In the event of any insured earthquake loss to the Leased Premises, the City shall apply for and use its best efforts to obtain financial assistance from the United States of America and the State of California to be used for the payment of such deductible. The coverage required to be provided by the City under this Section shall be written on a deductible basis and not on a self- insured retention basis. Subject to the applicable provisions of the Prior Lease while the same is in effect, the Net Proceeds of any insurance award resulting from any damage to or destruction of any structures constituting any part of the Facilities, Leased Premises caused by any of the perils covered by such insurance, the Authority, except as hereinafter provided, insurance shall cause the proceeds of such insurance be paid to be utilized for the repair, reconstruction or replacement of the damaged or destroyed portion of the Facilities, and the Trustee shall hold said proceeds separate by the City and apart from all other funds, deposited by the Trustee promptly upon receipt thereof in a special fund to be designated the “Insurance and Condemnation Fund,” and established pursuant to Section 6.02 of the Indenture. The application of any such Net Proceeds shall be determined in accordance with this Section, Section 6.07(A) of the Indenture and the insurance policy or policies. If the City determines and notifies the Trustee in writing of its determination, within ninety (90) days of such deposit, that the replacement, repair, restoration, modification or improvement of the Leased Premises is not economically feasible or in the best interest of the City; then such Net Proceeds shall be, to the end that such proceeds shall be extent permitted by the insurance policies themselves, considered a prepayment of rent pursuant to Section 10.03, transferred to the Redemption Fund and promptly applied to the repairredemption of Bonds, reconstruction or replacement pursuant to Section 4.01(D)(ii)(a) and Section 4.03(D)(iii)(a) of the Facilities Indenture in the priority established pursuant to at least the same good order, repair and condition as they were in prior to the damage or destruction, insofar as the same may be accomplished by the use of said proceeds. The Trustee shall permit withdrawals of said proceeds from time to time upon receiving the Written Request Section 6.07(A) of the Authority, stating that Indenture and the Authority has expended moneys insurance policy or incurred liabilities in an amount equal to the amount therein requested to be paid over to it for the purpose of repair, reconstruction or replacement, and specifying the items for which such moneys were expended, or such liabilities were incurred. Any balance of said proceeds not required for such repair, reconstruction or replacement shall be treated by the Trustee as Base Rental Payments and applied in the manner provided by Section 5.02 of the Trust Agreement, policies; provided, however, that if such determination would result in an abatement of Rental Payments pursuant to Section 4.4(e), then, except as otherwise provided in the insurance proceeds were paid Indenture, such Net Proceeds shall nevertheless be applied to cover damage to property the prompt replacement, repair, restoration or modification of the County that does Leased Premises, to the extent of such Net Proceeds. All Net Proceeds deposited in the Insurance and Condemnation Fund and not constitute part of so transferred to the Facilities, as defined herein, including, but not limited to furniture and office equipment, then such proceeds Redemption Fund shall be paid applied by the City to the County. Alternativelyprompt replacement, the Authority, at its option, and if the proceeds of such insurance together with any other moneys then available for the purpose are at least sufficient to redeem an aggregate principal amount of outstanding Bonds, equal to the amount of Base Rental attributable to the portion of the Facilities so destroyed or damaged (determined by reference to the proportion which the cost of such portion of the Facilities bears to the cost of the Facilities), may elect not to repair, reconstruct restoration, modification or replace the damaged or destroyed portion improvement of the Facilities and thereupon shall cause said proceeds to be used for the redemption of outstanding Bonds pursuant to the provisions of the Trust Agreement. The Authority and the County shall promptly apply for Federal disaster aid or State of California disaster aid in the event that the Facilities are damaged or destroyed as a result of an earthquake occurring at any time. Any proceeds received as a result of such disaster aid shall be used to repair, reconstruct, restore or replace the damaged or destroyed portions of the Facilities, or, at the option any of the County and the Authority, to enable the County to prepay all or structures constituting any part of the Base Rental Payments then unpaidLeased Premises, pursuant upon receipt of requisitions signed by an Authorized City Representative stating with respect to Section 7.02 hereofeach payment to be made (i) the requisition number, (ii) the name and address of the person, firm or corporation to whom payment is due, (iii) the amount to be paid and (iv) that each obligation mentioned therein has been properly incurred, is a proper charge against the Insurance and Condemnation Fund, has not been the basis of any previous withdrawal, and to redeem outstanding Bonds if such use specifying in reasonable detail the nature of such disaster aid is permitted. As an alternative to providing the insurance required obligation, accompanied by the first paragraph of this Section, a ▇▇▇▇ or any portion thereof, the County may provide a self insurance method or plan of protection if and to the extent such self insurance method or plan of protection shall afford reasonable coverage for the risks required to be insured against, in light of all circumstances, giving consideration to cost, availability and similar plans or methods of protection adopted by public entities in the State of California other than the County. So long as such method or plan is being provided to satisfy the requirements of this Sublease, there shall be filed annually with the Trustee a statement of an actuary, insurance consultant or other qualified person (which may be the Risk Manager of the County), stating that, in the opinion of the signer, the substitute method or plan of protection is in accordance with the requirements of this Section and, when effective, would afford reasonable coverage account for the risks required to be insured against. There shall also be filed a Certificate of the County setting forth the details of such substitute method or plan. In the event of loss covered by any such self insurance method, the liability of the County hereunder shall be limited to the amounts in the self insurance reserve fund or funds created under such methodobligation.
Appears in 2 contracts
Sources: Lease Agreement, Lease Agreement
Fire and Extended Coverage Insurance. The County shall procure or cause to be procured and maintain or cause to be maintained, throughout the term of this SubleaseFacilities Lease, insurance against loss or damage to any structures constituting any part of the Facilities by fire and lightning, with extended coverage insurance, vandalism and malicious mischief insurance and sprinkler system leakage insurance and earthquake insurance, if available on the open market from reputable insurance companies. Said extended coverage insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, flood, riot and riot attending a strikeriot, aircraft, vehicle damage, hail, smoke and such other hazards as are normally covered by such insurance. Such insurance shall be in an amount equal to the replacement cost (without deduction for depreciation) of all structures constituting any part of the Facilities, excluding the cost of excavations, of grading and filling, and of the land (except that such insurance may be subject to deductible clauses for any one loss of not to exceed $[250,000] 5,000). Such insurance may be a blanket or comparable amount adjusted for inflation umbrella policy or more in the case of earthquake insurance), or, in the alternative, shall be in an amount and in a form sufficient (together with moneys held under the Trust Agreement), in the event of total or partial loss, to enable the County to prepay all or any part of the Base Rental Payments then unpaid, pursuant to Section 7.02 hereof and to redeem outstanding Bondsa joint-purchase insurance program. In the event of any damage to or destruction of any part of the Facilities, caused by the perils covered by such insurance, the AuthorityCounty, except as hereinafter provided, shall cause the proceeds of such insurance to be utilized for the repair, reconstruction or replacement of the damaged or destroyed portion of the Facilities, and the Trustee shall hold said proceeds separate and apart from all other funds, in a special fund to be designated the “Insurance and Condemnation Fund,” to the end that such proceeds shall be applied to the repair, reconstruction or replacement of the Facilities to at least the same good order, repair and condition as they were in prior to the damage or destruction, insofar as the same may be accomplished by the use of said proceeds. The Trustee shall permit withdrawals of said proceeds from time to time upon receiving the Written Request of the AuthorityCounty, stating that the Authority County has expended moneys or incurred liabilities in an amount equal to the amount therein requested to be paid over to it for the purpose of repair, reconstruction or replacement, and specifying the items for which such moneys were expended, or such liabilities were incurred. Each such Written Request of the County shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. Any balance of said proceeds not required for such repair, reconstruction or replacement shall be treated by the Trustee as Base Rental Payments and applied in the manner provided by Section 5.02 of the Trust Agreement, provided, however, that if the insurance proceeds were paid to cover damage to property of the County that does not constitute part of the Facilities, as defined herein, including, but not limited to furniture and office equipment, then such proceeds shall be paid to the County. Alternatively, the AuthorityCounty, at its option, with the written consent of the Corporation, and if the proceeds of such insurance together with any other moneys then available for the purpose are at least sufficient to redeem prepay an aggregate principal amount of outstanding Bondsrepresented by Outstanding Certificates, equal to the amount of Base Rental Outstanding Certificates attributable to the portion of the Facilities so destroyed or damaged (determined by reference to the proportion which the construction cost of such portion of the Facilities bears to the construction cost of the Facilities), may elect not to repair, reconstruct or replace the damaged or destroyed portion of the Facilities and thereupon shall cause said proceeds to be used for the redemption prepayment of outstanding Bonds Outstanding Certificates pursuant to the provisions of the Trust Agreement. The Authority Corporation and the County shall promptly apply for Federal disaster aid or State of California disaster aid in the event that the Facilities are damaged or destroyed as a result of an earthquake occurring at any time. Any proceeds received as a result of such disaster aid shall be used to repair, reconstruct, restore or replace the damaged or destroyed portions of the Facilities, or, at the option of the County and the AuthorityCorporation, to enable the County to prepay all or any part of the Base Rental Payments then unpaid, pursuant to Section 7.02 hereof, and to redeem outstanding Bonds Outstanding Certificates if such use of such disaster aid is permitted. As an alternative to providing the insurance required by the first paragraph of this Section, or any portion thereof, the County may may, with the written consent of the Certificate Insurer, provide a self self-insurance method or plan of protection if and to the extent such self self- insurance method or plan of protection shall afford reasonable coverage for the risks required to be insured against, in light of all circumstances, giving consideration to cost, availability and similar plans or methods of protection adopted by public entities in the State of California other than the County. So Before such other method or plan may be provided by the County, and annually thereafter so long as such method or plan is being provided to satisfy the requirements of this SubleaseFacilities Lease, there shall be filed annually with the Trustee a statement certificate of an actuary, insurance consultant or other qualified person (which may be the Risk Manager who may, but need not be, an employee of the County), stating that, in the opinion of the signer, the substitute method or plan of protection is in accordance with the requirements of this Section and, when effective, would afford reasonable coverage for the risks required to be insured against. There shall also be filed a Certificate of the County setting forth the details of such substitute method or plan. In the event of loss covered by any such self self-insurance method, the liability of the County hereunder shall be limited to the amounts in the self self-insurance reserve fund or funds created under such method.
Appears in 1 contract
Sources: Facilities Lease