6/25/1980 - Laserfiche WebLink

Home Browse Search

r- I JUN 2 51980 BOOK 43 'PAGE 945 r . . (c) It is certified, prior to any abandonment of use, that the facility to be abandoned is no longer economically feasible of producing Net Revenues; and (d) It is certified that the estimated Net Revenues of the remaining System facilities for the next succeeding Fiscal, Year, plus the estimated Net Revenues of the facility, if any, to be added to the System, satisfy the earnings test hereinbefore provided in this subsection governing issuance of additional parity bonds. (J) Insurance on System. While any of the Bonds shall remain outstanding, the Issuer shall carry at -least the following insurance coverage to the extent deemed necessary by the Issuer's Attorney: (1) Fire and extended coverage on the insurable por- tions of the System, in amounts sufficient to provide for not less than full recovery whenever a loss from perils insured against does not exceed eighty per centum (80a) of the full insurable value of the damaged facility; and flood damage insurance shall be carried to the full insurable value, as recom- mended by consulting engineers, of all property of the System which may be subject to flood damage and shall be situated in flood plain area. (2) Public liability insurance relating to the opera- tion of the System, with limits of not less than $100,000 for one person and $300,000 for more than one person involved in one accident, to protect the Issuer from claims for bodily injury and/or death, and not less than $10,000 for claims for damage to property of others which may arise from the Issuer's operation of the System. (3) If the Issuer owns or operates a vehicle in the operation of the System, vehicular public liability insurance with limits of not less than $100,000 for one person and $300,000 for more than one person involved in one accident to protect the Issuer from claims for bodily injury and death, and not less than $10,000 against claims for damage to property of others which may arise from the Issuer's operation of vehicles. All such insurance shall be carried for the benefit of the holders of the Bonds. All moneys received by the Issuer by reason of insurance coverage, except liability coverage, shall be deposited to the credit of the Reserve Account and are hereby pledged by the Issuer as security for the Bonds, until and unless such proceeds are used to rememdy the loss or damage for which such proceeds are received, either by repairing the property damaged or replacing the property destroyed within ninety (90) days from the receipt of such proceeds. -27- - M M