Proceedings of the Board of Regents (1963-1966)

1552

JUNE MEETING, 1966

and, upon receipt of funds acquired pursuant to the Loan Agreement,
the Borrower shall, if such insurance is not already in force, procure
Fire and Extended Coverage Insurance on any other of its buildings the
revenues of which are pledged to the security of the loan. The foregoing
Fire and Extended Coverage Insurance shall be maintained so long as
any of the Bonds are 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 80 percent of the full insurable value
of the damaged building.
Where a Trustee is to be or has been designated in connection with
the Bonds, each such insurance policy shall be acceptable to the Trustee
and shall contain a clause making all losses payable to the Trustee as its
interest may appear.
In the event of any damage to or destruction of any of said building
or buildings, 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 the outstanding bonds.
(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 of the Bonds are outstanding,
Boiler Insurance covering any steam boilers servicing the Project, in a
minimum amount of $50,000.00
(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 of the Bonds
are outstanding, Public Liability Insurance with limits of not less than
$100,000 for one person and $300,000 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 the borrower's operations, including
any use or occupancy of its grounds, structures and vehicles, and including any non-owned vehicles operated for the benefit of the borrower.
The borrower shall also maintain Vehicle Property Damage Insurance
with limits of not less than $10,000.
(d) Use and Occupancy Insurance. Immediately upon occupancy of
any portion of the Project and so long thereafter as the funds and
investments of the Bond and Interest Sinking Fund Account or Collateral Account, if any (as provided in the Loan Agreement) are less
than the maximum debt service reserve required by said provisions of
the Loan Agreement, the Borrower shall procure and maintain Use and
Occupancy Insurance on each building, the revenues of which are
pledged to payment of the Bonds, in an amount sufficient to enable the
Borrower to deposit in the Bond and Interest Sinking Fund Account,
out of the proceeds of such insurance, an amount equal to the sum that
would normally have been available for deposit in such Account from
the revenues of the damaged building during the time the damaged
building is non-revenue producing as a result of loss of use caused by
the perils covered by Fire and Extended Coverage Insurance. Where a
Trustee is to be or has been designed in connection with the Bonds.
each such insurance policy shall be acceptable to the Trustee and shall