Common use of Rental Interruption Insurance Clause in Contracts

Rental Interruption Insurance. The Borrower shall procure and maintain, or cause to be procured and maintained, so long as Bonds are Outstanding under the Indenture, rental interruption or use and occupancy insurance to cover the Borrower’s loss, total or partial, of payments for the Loan resulting from the loss, total or partial, of the use of the Improvements located on the Project as a result of any of the hazards covered in the insurance required by Section 6.18, in an amount at least equal to the sums of (i) Maximum Annual Debt Service on the Bonds and (ii) budgeted Operation and Maintenance Costs coming due and payable during the current Fiscal Year; provided, however, that with respect to budgeted Operation and Maintenance Costs, in the first Fiscal Year such amount shall be as agreed to by the Borrower and the Oversight Agent and that in any future Fiscal Year such amount shall be the greater of the budgeted Operation and Maintenance Costs or the prior Fiscal Year’s actual Operation and Maintenance Costs. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the Borrower. Any insurer providing such insurance must be rated at least “B+” by A.M. Best (and if any Bonds are then rated by S&P, at least “BBB-” by S&P). The Net Proceeds of such insurance, if any, shall be paid to the Trustee and deposited in the Debt Service Fund, and shall be credited towards the payment of the Bonds as the same become due and payable. Any such insurance policy shall provide that it shall not be changed, modified, amended or cancelled without at least 30 days written notice to the Borrower and the Trustee.

Rental Interruption Insurance. The Borrower shall procure and maintain, or cause to be procured and maintained, so long as Bonds are Outstanding under the Indenture, rental interruption or use and occupancy insurance to cover the Borrower’s loss, total or partial, of payments for the Loan resulting from the loss, total or partial, of the use of the Improvements located on the Project as a result of any of the hazards covered in the insurance required by Section 6.18, in an amount at least equal to the sums of (i) Maximum Annual Debt Service on the Bonds and (ii) budgeted Operation and Maintenance Costs coming due and payable during the current Fiscal Year; provided, however, that with respect to budgeted Operation and Maintenance Costs, in the first Fiscal Year such amount shall be as agreed to by the Borrower and the Oversight Agent and that in any future Fiscal Year such amount shall be the greater of the budgeted Operation and Maintenance Costs or the prior Fiscal Year’s actual Operation and Maintenance Costs. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the Borrower. Any insurer providing such insurance must be rated at least “B+” by A.M. Best (and if any Bonds are then rated by S&P, at least “BBB-” by S&P)Best. The Net Proceeds of such insurance, if any, shall be paid to the Trustee and deposited in the Series A Bonds Debt Service Fund, and shall be credited towards the payment of the Bonds as the same become due and payable. Any such insurance policy shall provide that it shall not be changed, modified, amended or cancelled without at least 30 days written notice to the Borrower and the Trustee.

Rental Interruption Insurance. The Borrower shall procure and maintain, or cause to be procured and maintained, so long as Bonds are Outstanding under the Indenture, rental interruption or use and occupancy insurance to cover the Borrower’s loss, total or partial, of payments for the Loan resulting from the loss, total or partial, of the use of the Improvements located on the Project as a result of any of the hazards covered in the insurance required by Section 6.18, in an amount at least equal to the sums of (i) Maximum Annual Debt Service on the Bonds and (ii) budgeted Operation and Maintenance Costs coming due and payable during the current Fiscal Year; provided, however, that with respect to budgeted Operation and Maintenance Costs, in the first Fiscal Year such amount shall be as agreed to by the Borrower and the Oversight Agent and that in any future Fiscal Year such amount shall be the greater of the budgeted Operation and Maintenance Costs or the prior Fiscal Year’s actual Operation and Maintenance Costs. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the Borrower. Any insurer providing such insurance must be rated at least “B+” by A.M. Best (and if any Series A Bonds are then rated by S&P, at least “BBB-” by S&P). The Net Proceeds of such insurance, if any, shall be paid to the Trustee and deposited in the Series A Bonds Debt Service Fund, and shall be credited towards the payment of the Bonds as the same become due and payable. Any such insurance policy shall provide that it shall not be changed, modified, amended or cancelled without at least 30 days written notice to the Borrower and the Trustee.

Rental Interruption Insurance. The Borrower shall procure and maintain, or cause to be procured and maintained, so long as Bonds are Outstanding under the Indenture, rental interruption or use and occupancy insurance to cover the Borrower’s loss, total or partial, of payments for the Loan resulting from the loss, total or partial, of the use of the Improvements located on the Project as a result of any of the hazards covered in the insurance required by Section 6.18, in an amount at least equal to the sums of (i) Maximum Annual Debt Service on the Bonds and (ii) budgeted Operation and Maintenance Costs coming due and payable during the current Fiscal Year; provided, however, that with respect to budgeted Operation and Maintenance Costs, in the first Fiscal Year such amount shall be as agreed to by the Borrower and the Oversight Agent and that in any future Fiscal Year such amount shall be the greater of the budgeted Operation and Maintenance Costs or the prior Fiscal Year’s actual Operation and Maintenance Costs. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the Borrower. Any insurer providing such insurance must be rated at least “B+” by A.M. Best (and if any Senior Bonds are then rated by S&P, at least “BBB-” by S&P). The Net Proceeds of such insurance, if any, shall be paid to the Trustee and deposited in the Senior Bonds Debt Service Fund, and shall be credited towards the payment of the Bonds as the same become due and payable. Any such insurance policy shall provide that it shall not be changed, modified, amended or cancelled without at least 30 days written notice to the Borrower and the Trustee.

Rental Interruption Insurance. The Borrower shall procure and maintain, or cause to be procured and maintained, so long as Bonds are Outstanding under the Indenture, rental interruption or use and occupancy insurance to cover the Borrower’s loss, total or partial, of payments for the Loan resulting from the loss, total or partial, of the use of the Improvements located on the Project as a result of any of the hazards covered in the insurance required by Section 6.18, in an amount at least equal to the sums of (i) Maximum Annual Debt Service on the Bonds and (ii) budgeted Operation and Maintenance Costs coming due and payable during the current Fiscal Year; provided, however, that with respect to budgeted Operation and Maintenance Costs, in the first Fiscal Year such amount shall be as agreed to by the Borrower and the Oversight Agent and that in any future Fiscal Year such amount shall be the greater of the budgeted Operation and Maintenance Costs or the prior Fiscal Year’s actual Operation and Maintenance Costs. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the Borrower. Any insurer providing such insurance must be rated at least “B+” by A.M. Best (and if any Bonds are then rated by S&P, at least “BBB-” by S&P)Best. The Net Proceeds of such insurance, if any, shall be paid to the Trustee and deposited in the Debt Service Fund, and shall be credited towards the payment of the Bonds as the same become due and payable. Any such insurance policy shall provide that it shall not be changed, modified, amended or cancelled without at least 30 days written notice to the Borrower and the Trustee.