Agenda - Council - 07/12/2022 - Laserfiche WebLink

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Facilities, and with such deductible provisions as are customarily included by companies similarly situated. The term "full insurable value," as used herein, shall mean the actual replacement value, without deduction for physical depreciation or at the option of the Company any lesser amount which is equal to or greater than the principal amount of all of the Bonds then Outstanding. [Alternatively, the Company may insure or cause to be insured such property under a blanket insurance policy or policies which cover not only such property but other properties.] [NOTE TO DRAFTER: PLEASE DISCUSS WITH DEAL TEAM] Any insurance policy issued pursuant to the preceding paragraph of this Section shall be so written or endorsed as to make losses payable to the Trustee, the Company, and the Charter School as their respective interests may appear. The Net Proceeds of the insurance required in this Section shall be applied as provided in Section 6.2 of this Loan Agreement. Each insurance policy provided for in this Section and Sections 4.7 and 4.9 of this Loan Agreement shall contain a provision to the effect that the insurance company shall not cancel the policy or modify it without first giving written notice thereof to the Trustee, the Company, and the Charter School at least thirty (30) days in advance of such cancellation or modification under present policies and thirty (30) days under policies acquired hereafter, provided that if the Company or the Charter School delivers to the Trustee a written report of an Insurance Consultant stating that the required insurance policies cannot be obtained, then the Company shall post the written report to EMMA and, unless objected to in writing by the Trustee (acting at the direction of the Majority Bondholder(s))within thirty(30) calendar days of posting, failure of the Company to comply with the covenant to obtain any such insurance policy or to cause such insurance policy to be obtained shall not constitute an Event of Default under this Loan Agreement. In addition, the Company agrees that it shall review or cause to be reviewed, at least once every three (3) years, the coverage provided by each of such insurance policies and shall retain or cause to be retained an Insurance Consultant to provide to it a report with respect to the insurance requirements under this Section. Upon request, such report shall be provided to the Trustee and the Trustee may provide such report to Bondholders. The Company shall furnish, or cause the Charter School to furnish, to the Trustee on November 1 of each year, beginning on November 1, 20 , a certificate stating that all insurance required by Article IV of this Loan Agreement is in full force and effect. The Trustee is not responsible for determining the sufficiency of such insurance requirements. If requested, the Company shall provide the Trustee with a written certification that the Company is,to the fullest extent practicable,in compliance with the insurance requirements hereunder and the Trustee shall be fully protected in relying on such written certification. Section 4.7 Public Liability and Other Insurance. (a) Pursuant to the Lease, the Company agrees to cause the Charter School to carry public liability insurance or cause public liability insurance to be carried with one(1) or more reputable insurance companies meeting the requirements set forth in Section 4.6 hereof in minimum amounts of$1,000,000 for any one (1) occurrence in connection with the School Facilities and an aggregate of$2,000,000 for the Charter School as a whole. The Issuer, the Trustee, and the Company shall be made additional insureds under such policy or policies. 14 730911770