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construction resulting from other causes and events not within <br />the reasonable control of the contractor or of the Corporation. <br /> <br />Acceptance of CapitalProject II <br /> <br /> The Corporation and the City agree that the City <br />accepts Capital Project II in its presently existing <br />condition, and further warrants and holds harmless the <br />Corporation against any defects presently existing therein. <br />By entry under the Facility Lease upon commencement of the <br />term of the Facility Lease, the City accepts Capital Project <br />II as being in the condition in which the Corporation is <br />obligated to deliver Capital Project II to the City. <br /> <br />Insurance <br /> <br /> Fire and Extended Coverage Insurance. The City will <br />cause to be maintained insurance against loss or damage to any <br />structures constituting part of Capital Project II by fire and <br />lightning with extended coverage and vandalism and malicious <br />mischief insurance. Such insurance either will be (1) in an <br />amount equal to the replacement cost of the structures subject <br />to deductible clauses of not to exceed the lesser of $50,000 <br />or the available amount in the Insurance Reserve Fund or <br />(2) in an amount and in form sufficient (together with moneys <br />in the Certificate Reserve Fund) to enable all Certificates <br />attributable to Capital Project II to be prepaid. <br /> <br /> Earthquake Insurance. The City will, following <br />completion of construction, maintain earthquake insurance in <br />an amount equal to the replacement cost of Capital Project, <br />II, provided coverage is available at reasonable cost on the <br />open market from reputable insurance companies. Such <br />insurance may be subject to a deductible clause of not to <br />exceed ten percent of said replacement cost for any one loss. <br />Alternatively, the amount of such earthquake insurance will be <br />sufficient (together with moneys in the Certificate Reserve <br />Fund) to enable all Certificates attributable to Capital <br />Project II to be prepaid. <br /> <br /> Use and Occupancy Insurance. The City will cause to <br />be maintained use and occupancy or rental interruption <br />insurance to cover total or partial loss of rental income from <br />any structures constituting Capital Project II facilities <br />resulting from damages (discussed in "Fire and Extended <br />Coverage Insurance" and "Earthquake Insurance" above) in an <br />amount sufficient to p~y the total rental attributable to <br />Capital Project II for a period of two years, subject to a <br />deductible of $1,000, except that such insurance need be <br />maintained as to the peril of earthquake only if available at <br /> <br /> B-11 <br /> 1685S <br /> <br /> <br />