Agenda Package - 10-1-12 Reg. Meeting

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(t r� u6, ARTICLE V INSURANCE SECTION 5.1. Comprehensive General Liability The Purchaser shall maintain or cause to be maintained throughout the term of this Agreement, a comprehensive general liability policy or policies in protection of the Purchaser, its officers, agents and employees. Said policy shall cover such losses and for such amounts and shall have such deductible amounts as shall be satisfactory to the Board and, in the judgment of the Board, shall protect the Purchaser against losses not protected under the principles of sovereign immunity. The net proceeds of such liability insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the insurance proceeds shall have been paid. SECTION 5.2. Workers' Compensation The Purchaser shall maintain workers' compensation insurance issued by a responsible carrier authorized under the laws of the State to insure its employees against liability for compensation under the laws now in force in the State, or any act hereafter enacted as an amendment or supplement thereto or in lieu thereof. The proceeds of such workers' compensation insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the insurance proceeds shall have been paid. SECTION 5.3. Insurance (a) The Purchaser shall procure and maintain, or cause to be procured and maintained, throughout the term of this Agreement, insurance against loss or damage to any portion of the Mortgaged Property by fire and lightning, with extended coverage, and vandalism, theft and malicious mischief insurance. Said extended coverage insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance. Such insurance policies shall name the Seller as loss payee and additional insured. (b) Such insurance required by this Section shall be in an amount equal to 100% of the replacement cost of the Mortgaged Property (except that such insurance may be subject to a reasonable and customary deductible clause for any one loss); provided, however, that in no event shall such insurance be maintained in an amount less than the aggregate Installment Payments designated as principal. (c) The Net Proceeds of such insurance required by this Section shall be applied as provided in Section 6.1 or Section 6.2. SECTION 5.4. Title Insurance The Purchaser shall obtain at the time of execution of this Agreement, and cause to be maintained, a mortgagee's title insurance policy on the Mortgaged Property insuring the Purchaser's fee simple interest in the Mortgaged Property, subject only to Permitted Encumbrances, in an amount equal to the aggregate Installment Payments designated as principal, naming the Seller as the named insured.] SECTION 5.5. General Insurance Provisions (a) The Purchaser shall pay or cause to be paid when due the premiums for all insurance policies required by this Agreement. 10