Common use of Advances by Authority Clause in Contracts

Advances by Authority. In the event the Company fails to take out or maintain the full insurance coverage required by Section 7.04 or 7.05 of this Agreement or fails to pay the charges required to be paid hereunder at or prior to the time they are required to be paid, the Authority may (but shall not be obligated to) take out such required policies of insurance and pay the premiums on the same, and pay such charges or such other amounts as are necessary to perform the Company’s obligations hereunder. In the event that the Authority takes any of the foregoing actions, the Authority shall notify the Company and the Trustee in writing. All amounts so advanced therefor by the Authority shall become an additional obligation of the Company to the Authority, which amounts, together with interest thereon at the rate equal to the interest rate on the Bonds from the date advanced, the Company agrees to pay on demand. Any remedy vested in the Authority for the collection of loan repayments hereunder shall also be available to the Authority for the collection of all such amounts so advanced.