2007-05-23 CC Set Agenda & Handouts

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to the Public Entity then the Public Entity has supplied or has caused some other entity to supply the necessary funds in accordance with Section 5.02, or to provide evidence acceptable to the State Entity that sufficient funds are available. Q. No Event of Default under this Agreement or event which would constitute an Event of Default but for the requirement that notice be given or that a period of grace or time elapse shall have occurred and be continuing. R The Public Entity has supplied to the State Entity all other items that the State Entity may reasonably ;require. Section 5.04 Construction Inspections. The Public Entity and the Architect, if any, shall be responsible for making their own inspections and observations of the Project, and shall determine to their own satisfaction that the work done or materials supplied by the Contractors to whom payment is to be made out of each payment request has been properly done or supplied in accordance with the applicable contracts. with such Contractors. If any work done or materials supplied by a Contractor are not satisfactory to the Public Entity .or the Architect, if any, or if a Contractor is not in material compliance with the Construction Contract Documents in any respect, then the Public Entity shall immediately notify the State Entity, in writing. The State Entity and the Inspecting Engineer may conduct such inspections of the Project as either may deem necessary for the protection of the State Entity's interest, and that any inspections which may be made of the Project by the State Entity or the Inspecting Engineer are made and all certificates issued by the Inspecting Engineer will be issued solely for the benefit and protection of the State Entity, and the Public Entity will not rely thereon. Article VI MISCELLANEOUS Section 6.01 Insurance. The Public Entity shall -maintain or cause to be maintained builder:s risk insurance and :fire and extended coverage insurance on the Facility, if such exists, in an amount equal to the full insurable value thereof: and shall ;name the State Entity as loss payee thereunder. If damages which are covered by such required insurance occurs to the Facility, if such exists, then the Public Entity shall, at its sole option and ~scretion, either; (i) use or cause the insurance proceeds to be used to fully or partially repair such damage and to provide or cause to be provided whatever additional funds that may be needed to fully or partially repair such damage, or (ll) sell its interest in the Real Property and the damaged Facility, if such exists, in accordance with the provisions contained in Section 3.03. If the Public Entity elects to only partially repair such damage, then the portion of the insurance proceeds which are not used for such repair shall be applied in accordance with the provisions contained in Section 3.04 as if the Public Entity's interest in the Real Property and Facility, if such exists, had been sold, and such amounts shall be credited against the amounts due and .owing under Section 3.04 upon the ultimate sale of the Public Entity's interest in the Real Property and Facility, if such exists. If the Public Entity elects to sell its interest in the Real Property and the damaged Facility, if such exists, then such sale must occur within a reasonable time period from the date the damage occurred and the cumulative sum of the insurance proceeds plus the proceeds of such sale must be applied in accordance with the provisions contained in S~tion 3.04, with the insurance Generic GO Bond Proceeds Grant Agreement for Construction Grants 17 RDGP-07-OO04-0-FY07 Ver-.1212006 (Gnrc GO GA-Cnstrctn Gmt)