Proceedings of the Board of Regents (1963-1966)

APRIL MEETING, 1966

1385

(2) Establish and maintain the reserves to be established under the
terms hereof.
c) That it will establish and maintain, so long as any of the bonds
are outstanding, such parietal rules, rental rates, board charges, and
such other charges for the use of the project as may be necessary to:
(1) assure maximum occupancy and use of the project, and (2) provide
the operating and maintenance expenses of the project, the debt service on the bonds, the required reserve therefor, and the Repair and
Replacement Reserve.
d) That it will at all times furnish heat to the project, or any addilion thereto or replacements thereof. at not in excess of the reasonable cost thereof.
SECTION 5. INSURANCE ON COMPLETED PROJECT. The Borrower
covenants and agrees that it will procure and maintain insurance as
follows:
a) Fire and Extended Coverage. Upon acceptance of the project
from the contractor. the Borrower shall, if such insurance is not already in force, procure Fire and Extended Coverage Insurance on the
project. Such Fire and Extended Coverage Insurance shall be maintained so long as any bond issued hereunder remains outstanding and
shall be in amounts sufficient to provide for not less than full recovery
whenever a loss from perils insured against does not exceed eighty per
cent (80%) of the full insurable value of the damaged building. In the
event of any damage to or destruction of said project or any part thereof. the Borrower shall promptly arrange for the application of the insurance proceeds for the repair or reconstruction of the damaged or
destroyed portion thereof, or retire outstanding bonds. The Borrower
shall at the same time procure and maintain, so long as any bond issued
hereunder remains oustanding. like insurance upon the contents of the
project in an amount equal to their full insurable value.
b) Boiler Insurance. Upon acceptance of the project from the
contractor, the Borrower shall. if such insurance is not already in
force. procure and maintain, so long as any bond issued hereunder
remains outstanding. Boiler Insurance covering any steam boilers servicing the project in a minimum amount of Fifty Thousand ($50.000.00)
Dollars.
c) Liability Insurance. Upon receipt of any funds acquired pursuant to the Loan Agreement, the Borrower shall, if such insurance is
not already in force. procure and maintain, so long as any bond issued
hereunder remains outstanding, Public Liability Insurance with limits
of not less than One Hundred Thousand ($100,000.00) Dollars for one
person and Three Hundred Thousand ($300,000.00) Dollars for more
than one person involved in one accident to protect the Borrower from
claims for bodily injury and/or death which may arise from Borrower's
operations, including any use or occupancy of its grounds, structures,
and vehicles.
d) Use and Occupancy Insurance. Immediately upon occupancy
of any portion of the project, and so long thereafter as the funds and
investments in the 1965 Bond and Interest Sinking Fund Account are