1987-11-09 Regular Meeting - Laserfiche WebLink

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e . fill' judicial decision. All such insurance shall be written by responsible insurance carriers selected by the Authority in amounts sufficient to avoid the application of any co-insurance clauses contained in the policies effecting such insurance (and in any event for less than 80% of full insurable value). If the Southeast Plant should be materially damaged or destroyed by fire or other casualty, the Authority shall, as expeditiously as possible, diligently prosecute, or cause to be prosecuted, the recon- struction or replacement thereof as nearly as possible to the condition thereof immediately prior to such damage or destruction and shall apply the proceeds from any insurance to the payment of the cost of such re- construction or replacement. The insurance proceeds, if any, remaining after the application thereof to such reconstruction or replacement shall be deposited in the Authority's interest and sinking fund (and the capacity charges to be paid thereafter by the Participants shall be reduced pro tanto). If the damage or destruction materially reduces the Authority's ability to deliver Water hereunder and the insurance proceeds are not sufficient to pay for the entire cost of reconstruction or replacement, the Authority is authorized to draw upon any cont ingency reserve fund and, if it is exhausted, then the Participants shall make up any deficiency pro rata in accordance with their reserved capacity in the Southeast Plant. ARTICLE XIV Arbitration Section 14.01 .Zl.ny dispute which is specifically stated to be subject to arbitration under the provisions of this Contract shall be promptly submitted to an arbitrator mutually agreed to by the Authority -39-