HomeMy WebLinkAboutC.054.93011_0450against loss or damage to the Project in the amount of the full replacement cost of the Project.
The liability and casualty policies shall have deductible clauses not exceeding $200,000, shall
name the Lender as an additional insured as its interests may appear, shall be provided by a
commercial insurer satisfactory to the Lender, and must explicitly waive any co-insurance
penalty. Except as provided in Section 5.1(c), the County shall pay over to the Lender (and
hereby irrevocably assigns, transfers and sets over to the Lender) all right, title and interest of the
County in and to any Net Proceeds payable as to any damage or destruction to the Project during
the Term to be held by the Lender until applied in accordance with Section 5.1(b) or Section
5.2(b), as the case may be.
All such policies shall be deposited with the Lender, provided that in lieu of such policies
there may be deposited with the Lender a certificate or certificates of the respective insurers
attesting the fact that the insurance required by this Section is in full force and effect. Prior to
the expiration of any such policy, the County shall furnish the Lender evidence satisfactory to the
Lender that the policy has been renewed or replaced or is no longer required by this Agreement.
Unless a policy with such an undertaking is available only at a cost which the County, with the
approval of the Lender, determines to be unreasonable, each policy shall contain an undertaking
by the insurer that such policy shall not be modified adversely to the interests of the Lender or
canceled without at least 30 days' prior notice to the Lender.
In lieu of policies of insurance written by commercial insurance companies meeting the
requirements of this Section, the County may maintain a program of self-insurance or participate
in group risk financing programs, risk pools, risk retention groups, purchasing groups and
captive insurance companies, and in state or federal insurance programs.
The County acknowledges its responsibility for the payment of all deductible amounts in
respect of the insurance required by the provisions of this Section and covenants to maintain at
all times a sufficient amount of available funds for such purpose.
The Lender shall not be responsible for the sufficiency or adequacy of any insurance
herein required and shall be fully protected in accepting payment on account of such insurance or
any adjustment, compromise or settlement of any loss.
The Lender shall cooperate fully with the County at the County's expense in filing any
proof of loss with respect to any insurance policy maintained pursuant to this Section and in the
prosecution or defense of any prospective or pending condemnation proceeding with respect to
the Site or any portion thereof.
To the extent losses for any damage to the Project, however caused, are paid from the Net
Proceeds of any insurance required by this Section, no claim shall be made and no suit shall be
brought against the County by the Lender or the -Trustee or anyone else claiming by, through or
under either of them for the recovery of such Net Proceeds.
Expenses, Taxes. Subject to Section 4.5 and Section 4.14 hereof, the County shall pay as
Additional Payments directly to the party so owed:
all of the expenses of maintenance of the Project, including, but not limited to all charges for gas,
water, steam, electricity, light, heat or power, telephone or other utility service furnished to or
used on or in connection with the Site•, and
any and all taxes and assessments payable with respect to the Site and the Project, including, but
not limited to, all license or registration fees, gross receipts tax, sales and use tax, if applicable,
license fees, documentary stamp taxes, rental taxes, assessments, charges, ad valorem taxes,
excise taxes, and all other taxes, licenses and charges imposed on the ownership, possession or
use of the Site and the Project, together with any interest and penalties, other than taxes on or
measured by the net income of the Lender. There will be no abatement of Installment Payments
on account of interruption of any utility services.
Proof of Payment of Taxes, Other Charges. The County shall furnish the Lender, upon request
of the Lender, proof of payment of any taxes, utility charges, insurance premiums, or other
charges or payments required to be paid by the County under this Agreement.
No Encumbrances. Except as permitted by the Deed of Trust, the County shall not directly or
indirectly create, incur, assume or suffer to exist any mortgage, pledge, lien, charge,
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