Agenda - 11-16-1993 - VIII-A (2)

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50 (m) maintain, or cause to be maintained, insurance (which may include one or more self-insurance programs)covering such risks and in such amounts as, in its judgment, is adequate to protect it and the Project and any Improvements and its operations,which shall be not less than the following: (1) Insurance against loss and/or damage to the Project and any Improvements covering such risks as are ordinarily and reasonably insured against by similar facilities, including, without limiting the generality of the foregoing, fire, earth settlement, flood (if applicable and available) and the risks covered under an "all risks" policy, including Extended Coverage and Special Extended Coverage Endorsements and "Umbrella" coverage, and against explosion of boilers, heating apparatus and other pressure vessels. Such insurance, together with the blanket earnings and extra expense insurance below mentioned, shall be in the amount required to pay the greater of(i) the principal of the Bonds as they mature in the normal course of events without a default on such Bonds or (ii) 100% of the replacement cost of the Project and any Improvements (and their contents to the extent owned by the Corporation), and in any event, sufficient to prevent the Corporation from becoming a co-insurer with respect to any loss, said coverage to be endorsed with a Replacement Cost Endorsement( the amount to be reviewed annually and increased if necessary so as to provide coverage at all times in an amount necessary to restore the Project and any Improvements and such improvements and contents to the condition existing just before destruction or damage); (2) Blanket earnings and extra expense insurance, covering loss of revenues by reason of the total or partial suspension of, or interruption in, the operation of the Project and any Improvements caused by the damage to or destruction of any part of the Project and any Improvements, with such exceptions as are customarily imposed by insurers covering a period of suspension or interruption, and in such amount as will provide the cash portion of Revenues equal to the Maximum Annual Debt Service on the Bonds together with an amount, determined by the Manager, required to pay salaries of key personnel of the Project and any Improvements and any other unavoidable costs during any 12-month period of such suspension, interruption or destruction of the Project and any Improvements or its operation; (3) Comprehensive general liability insurance, protecting the Corporation and the Manager, as their interests may appear, against liability for injuries to persons and/or property, occurring on, in or about the Project and any Improvements in the minimum amount of $1,000,000 combined bodily injury and property damage liability as supplemented by general liability coverage under a $5,000,000 umbrella policy; (4) Worker's compensation insurance respecting all employees of the Corporation and all persons engaged in work at the Project and any Improvements in such amount as is required by law; On or before the date of issuance of the Bonds, the Corporation shall deliver, or shall cause to be delivered, to the Trustee a certificate of an independent insurance consultant, in form and substance reasonably satisfactory to the Trustee,that evidences the Corporation's compliance with its insurance obligations set forth in this Section. The insurance required to be maintained pursuant hereto shall be subject to a review and procurement of certificate of an independent insurance consultant as aforesaid at least once every three years, commencing in the first year after the date of the Indenture, unless the Trustee requires more frequent review and provision 28