Common use of Insurance on Electric System Clause in Contracts

Insurance on Electric System. (a) The City covenants that it shall at all times maintain with responsible insurers all such insurance on the Electric System as is customarily maintained by similar utilities systems with respect to works and properties of like character against accident to, loss of or damage to such works or properties and against loss of revenues. If any useful part of the Electric System shall be damaged or destroyed such part shall be restored to use. The money collected from insurance against accident, loss or damage shall be used for repairing or rebuilding the lost, damaged or destroyed works and properties, and to the extent not so applied, shall be applied: (i) prior to the Crossover Date, to the retirement of outstanding Senior Bonds and Qualified Obligations, and (ii) from and after the Crossover Date, to the retirement of Outstanding Distribution System Parity Obligations, and for such purposes paid into the appropriate funds or accounts. The money collected from any loss of revenues insurance shall be deposited in the Revenue Account. The City shall also maintain with responsible insurers worker’s compensation insurance and insurance against public liability and property damage with respect to the Electric System to the extent reasonably necessary and obtainable. Notwithstanding the foregoing, the City may provide any insurance required by this Section 7.02 through a self-insurance program or it may provide such insurance as part of any blanket coverages maintained by the City.

Insurance on Electric System. (a) The City covenants that it shall at all times maintain with responsible insurers all such insurance on the Electric System as is customarily maintained by similar utilities systems with respect to works and properties of like character against accident to, loss of or damage to such works or properties and against loss of revenues. If any useful part of the Electric System shall be damaged or destroyed such part shall be restored to use. The money collected from insurance against accident, loss or damage shall be used for repairing or rebuilding the lost, damaged or destroyed works and properties, and to the extent not so applied, shall be applied: (i) prior to the Crossover Date, to the retirement of outstanding Senior Bonds Bonds, Qualified Obligations and Second Lien Qualified Obligations, and (ii) from and after the Crossover Date, to the retirement of Outstanding Distribution System Parity Obligations, and for such purposes paid into the appropriate funds or accounts. The money collected from any loss of revenues insurance shall be deposited in the Revenue Account. The City shall also maintain with responsible insurers worker’s compensation insurance and insurance against public liability and property damage with respect to the Electric System to the extent reasonably necessary and obtainable. Notwithstanding the foregoing, the City may provide any insurance required by this Section 7.02 through a self-insurance program or it may provide such insurance as part of any blanket coverages maintained by the City.