Agenda - 06-24-1986 - Laserfiche WebLink

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(c) In the event the Company shall fail to maintain, cr cause to be maintained, the full insurance coverage required by this Agreement or shall fail to keep the Project in as reasonably safe condition as its operating conditions will permit, or shall fail to keep the Project in good repair and good operating condition, the Authority or the Holder may (but shall be under no obligation to) , after 30 days' notice to the Company, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and the Company agrees to reimburse the Authority and the Holder to the extent of the amounts so advanced by them, or any of them, with interest thereon at a rate per annum equal to the Alterna- tive Rate of Interest from the date of advancement to the date of reimbursement. (d) The Company agrees that to the extent that it shall fail to carry insurance required by subsection (b) of this Section, it shall pay promptly to the Holder for application in accordance with the provisions of subsection (e) hereof such amount as would have been received as Net Proceeds by the Holder under the provisions of said subsections (b) and (e) hereof had such insurance been carried to the extent required. (e) (i ) The Net Proceeds of the insurance carried pursuant to the provisions of subsections (b) (ii ) and (b) (iii) shall be applied by the Company toward extinguishment or satisfaction of the liability with respect to which such insurance proceeds may be paid. (ii) The Net Proceeds of the insurance carried with respect to the Project pursuant to the provisions of sub- sections (b) ( i ) and (b) (iv) , and the Net Proceeds resulting from Eminent Domain, in excess of $50, 000, shall be paid to, and held in escrow by, the Holder as a special trust fund pending receipt of written instructions from the Company. At its option, to be exercised within the period of 30 days from the receipt by the Holder of such Net Proceeds, the Company shall advise the Holder in writing that (A) the Company will use the Net Proceeds for the repair, replacement, renewal or improvement of the Project ( such funds to remain in escrow with the Holder and to be drawn down by the Company as provided in Section 9 of the Bond Purchase Agreement as in the case of withdrawals from the Project Fund) , or (B) the Net Proceeds shall be applied to the prepayment of installments of principal on the Note in inverse order of maturities as provided in Article X hereof. The Company shall not exercise the option provided by Section 7. 7(e) (ii) (A) , however, if in the opinion of a licensed engineer the repair, replacement, renewal or improvement of the Project would be impractical under the 23 .