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<br /> (b) To provide for the payment of principal and interest on <br /> the Outstanding Bonds, Bonds and Additional Bonds and the required <br /> reserve therefor and maintain the Water and Sewer System Replacement <br /> and Repair Fundi <br /> (c) To pay in addition all outstanding indebtedness against <br /> the System other than the Outstanding Bonds, Bonds or any Additional <br /> Bonds, as and when the same becomes due. <br /> Section 10.02. Maintenance and Operation: Insurance. (a) The <br /> City hereby covenants and agrees to maintain the facilities of its <br /> water and sewer system in good condition and operate the same in an <br /> efficient manner and at a reasonable cost. <br /> (b) If the water and sewer system includes structures above <br /> ground level, the City shall, upon acceptance of the project from <br /> the Contractor, if such insurance is not already in force, procure <br /> Fire and Extended Coverage Insurance on the insurable portions of <br /> the water sewer system. The foregoing insurance shall be maintained <br /> so long as any of the Outstanding Bonds, Bonds, and Additional Bonds <br /> or Obligations are outstanding and shall be in amounts sufficient to <br /> provide for not less than full recovery whenever a loss from perils <br /> insured against does not exceed 80% of the full insurable value of <br /> the damaged facility. <br /> In the event of any damage to or destruction of any part of <br /> said water and sewer system covered by such insurance, the City <br /> shall promptly arrange for the application of the insurance proceeds <br /> for the repair or reconstruction of the damaged or destroyed portion <br /> thereof. <br /> (c) If such insurance is not already in force, procure and <br /> maintain, so long as any of the Outstanding Bonds, Bonds, and <br /> Additional Bonds are outstanding, Public Liablity Insurance relating <br /> to the operation of the water and sewer facilities with limits of <br /> not less than $100,000 for one and $300,000 for more than one person <br /> involved in one accident to protect the City from claims for bodily <br /> injury and/or death; and not less than $10,000 from claims for <br /> damage to property of others which may arise from the City's <br /> operations of the water and sewer system. <br /> (d) If the City owns or operates a vehicle in the operation <br /> of the water and sewer system, including any non-owned vehicles <br /> operated for the benefit of the City, the City shall, if such <br /> lnsurance is not already in force, procure and maintain such <br /> insurance, so long as any of the Outstanding Bonds, Bonds, or <br /> Additional Bonds are outstanding. Vehicular Public Liability <br /> Insurance with limits of not less than $100,000 for one person <br /> involved in one accident to protect the City from claims for bodily <br /> injury and/or death, and not less than $10,000 against claims for <br /> damage to property of others which may arise from the Ci ty' s <br /> operation of vehicles. <br /> 4172f <br /> -27- <br />