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become part of the renewal and replacement fund and may be used as ® described within Section XVII, RENEWAL & REPIACMENT ACCOUNT. If at any time thereafter the County takes possession or makes use of the utility systems, all contributions in aid of construction funds collected will ® vest to the County and those funds which have been expended or an equal amount would be deducted from any purchase price. SECTION XVII RENEWAL & REPIAC34ENT ACCOUNT Twj and one half percent (2�%) of the operating cost of the Utility shall be placed in an interest bearing renewal and replacement account for purposes of renewal and/or replacement of the capital assets of the water and/or wastewater system of the Utility. Additionally, the Utility shall initially fund said account with two thousand dollars ($2,000) which will also be reserved for capital maintenance items. Interest shall accumulate in said account until the account reaches ten thousand dollars ($10,000); thereafter interest shall be paid to the Utility annually. Said funds shall be used as a sinking fund and applied only for renewal and/or replacement of the water and/or wastewater system by the Utility as the reed arises; the percentage required to be placed in the renewal and replacement account may be amended after review by the County as necessary `o maintain a sufficient account balance taking into account the general condition of the system. The County is granted the right to make necessary repairs using said funds in the event of default on the part of the Utility in maintaining the quality standards established herein. In the event that the County purchases the corporation's utility system pursuant to the provisions of this franchise as stated above, then any funds in said renewal and replacement account shall vest in the County. SECTION XVIII INSURANCE 1. The Utility shall at all times maintain public liability and property damage insurance in such amounts as set forth in, to wit: Exhibit "B" attached hereto dnd incorporated herein. 2. The Utility shall cause the County to be duly notified by the insurer in the event of anv modifications or deletions of the insiranrn as set forth in said Exhibit "B". Said aimunts shall be adjusted by the Utility, as shall be required from time to time by the Board in accordance with good business practices as determined by safe business standards as established by the Board for the protection of the County and the general public and for any liability which may result from any action of the Utility. 12