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representative of Owner or the Authority, who may make copies of or extracts from such <br />books, records and accounts. Agent shall cooperate in any audit of the financial <br />statements or accounts of the Property- which shall be caused to be performed by Owner <br />or outside regulatory authority. <br />(b} By the 20th day of each month, or the next business day if the 20th falls on a <br />weekend or on a holiday, Agent will furnish Owner with a statement of receipts and <br />disbursements during the previous month, and other appropriate information as requested <br />by Owner. <br />17. Fidelity Bond. <br />The Agent shalt maintain a fidelity bond, in the principal sum of no Less than the Project <br />Income (as defined in that certain Regulatory and Operating Agreement by and between <br />the Owner and the Authority, of even date herewith} for two and one-half (2 '/z) months, <br />plus the total value of any cash account of the Project to which the Agent has access, to <br />protect the Owner against misappropriation of Project funds by the Agent and its <br />employees. Fidelity bond costs for the Agent's supervisory staff shall be at the Agent's <br />own expenses, but the Agent may charge the Operating Account for bond costs of front- <br />line employees. <br />18. Insurance. <br />Owner wilt inform Agent, in writing, of insurance, if any, to be carried with respect to the <br />Property and its operations, and the Agent will cause such insurance to be placed and <br />kept in effect at all times. Premiums will be paid from the Operating Account as <br />Property operating expenses in accordance with Section 14 hereof. All insurance will be <br />placed with such companies, on such conditions, in such amounts and with such <br />beneficial interests appearing thereon as shall be acceptable to Owner, provided that the <br />same will include public liability coverage, with Agent designated as an insured, in <br />coverage amounts acceptable to Agent as well as Owner. In no event shall the deductible <br />for comprehensive general liability and property casualty coverage exceed $5,000.00. <br />Agent will investigate and furnish Owner with reports as to all accidents, claims, and <br />potential claims for damage relating to the Property and will cooperate with Owner's <br />insurers in connection therewith. <br />19. Compliance with Governmental Orders. <br />Agent will take such action as many be necessary to comply promptly with any and all <br />governmental orders or other requirements affecting the Property, whether imposed by <br />federal, state, county, or municipal authority; provided, however, that Agent shall take no <br />such action so long as Owner is contesting, or has affirmed its intention to contest, any <br />such order or requirement. Agent will notify Owner in writing of all notices of such <br />orders or other requirements within forty-eight (48) hours from the time of their receipt. <br />10 <br />