1987-11-09 Regular Meeting - Laserfiche WebLink

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e e ~ - Section 12.02 In accordance with the provisions of Article ll09j, V.A.T.C.S., at such time as the Bonds and all other indebtedness incurred by the Authority in the acquisition, construction, improvement or extension of the Authority's share of the Southeast Plant, the Transmission System and the Distribution System is paid in full, an undivided interest in the Authority's share of the Southeast Plant, the Transmission System and the Distribution System equal to a fraction the numerator of which is the aggregate amount of all production Capacity and Pumping Capacity of the City and the denominator of which is the total amount of all Production Capacity and Pumping Capacity of all of the Participants, shall automatically and irrevocably vest in the City without the necessity of the execution and delivery of any convey- ance by the Authority. If requested in writing by the City, the Author- ity will execute, acknowledge and deliver to the City an appropriate instrument acknowledging that such vesting of title has occured, but such instrument shall not be necessary to effect the automatic vesting of title which shall occur as set forth above. ARTICLE XIII Insurance Sect ion 13.01 The .r\U thori ty agrees to carry fire, casual ty, publ i c liability and other insurance in amounts and against risks which are consistent with accepted insurance practices of companies owning and operating similar facilities in Harris County, Texas; provided, how- ever, the Authority shall not be required to carry liability insurance except to insure itself against risk of loss due to claims for which it can, in the opinion of the Authority's legal counsel, be liable under the Texas Tort Claims Act or any similar applicable law or -38-