2016-007 - Municipal Lease Agreement with Liberty National Bank for fire truck

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notwithstanding lapse of any policy for any reason, or right of cancellation by the insurer or any cancellation by Lessee, such policy shall continue in full force for the benefit of Lessor, for at least thirty (30) days after written notice thereof to Lessor, and no alteration in any such policy shall be made except upon thirty (30) days written notice of such proposed alteration to Lessor and written approval by Lessor. If Lessee fails to acquire any policy of insurance required to be maintained pursuant to this paragraph, or fails to renew or replace any such policy at least twenty (20) days prior to the expiration thereof, or fails to keep any such policy in full force and effect, Lessor shall have the option (but not the obligation) to pay the premiums on any such policy of insurance or to take out new insurance in an amount, type, coverage and terms reasonably satisfactory to Lessor. Any amounts paid therefor by Lessor shall be immediately due and payable to Lessor by Lessee upon demand by Lessor. No exercise by Lessor of such options shall in any way affect the provisions of this Lease, including, but not limited to, the provision that failure by Lessee to maintain the prescribed insurance shall constitute an Event of Default (as that term is defined in Section 17 below). Lessee hereby assigns to Lessor all sums which become payable under any insurance covering the Equipment, directs any insurer to pay all such proceeds to Lessor, and authorizes the Lessor to act as Lessee's attorney -in -fact to make claim for, receive payment of and execute and endorse all documents, checks or drafts for, loss or damage under any such insurance policy. The proceeds of such insurance, at the option of the Lessor, shall be applied (a) toward the replacement, restoration or repair of the Equipment or (b) toward payment of the obligations of Lessee hereunder. 13. CASUALTY. For the purposes of this Lease, "Casualty Occurrence" shall mean any of the following events: (a) The Equipment or any Item of Equipment no longer operates in the manner and for the purposes originally contemplated, for any reason, and it is not made to so operate by repairs or installation of replacement parts in accordance with Paragraph 10 of this Lease within 60 days from the time it ceased to operate. (b) Any Item of Equipment is requisitioned, condemned or taken over by any governmental authority under the power of eminent domain or otherwise for a definite period which exceeds the then remaining Lease Term, or for any indefinite period of time. (c) Any Item of Equipment suffers damage which, in the good faith judgment of the Lessor would require the expenditure of an amount equal to or greater than fifty percent of Lessor's cost of that item of Equipment (as shown on the Schedule for that Item) to repair or restore it to its condition and operating capacity immediately prior to suffering such damage. (d) Any Item of Equipment is lost, stolen or commandeered. 14. CASUALTY PAYMENT. If any Item of Equipment shall suffer a Casualty Occurrence, Lessee shall promptly and fully inform Lessor with respect thereto. Lessee shall pay to Lessor, on the first date that any installment of rentfor that Item of Equipment becomes due afterthe giving of such notice, an amount (a "Casualty Payment ") equal to the sum of (a) the Stipulated Loss Value (defined below) calculated as provided in this Section 14, for that Item of Equipment, computed as of the date the Casualty Payment is due, plus (b) all installments of rent then due in connection with that item as of the date of such Casualty Payment, plus (c) any and all of the other payments due to Lessor under this Lease as of the date of such Casualty Payment with respect to that Item. Upon tender of the Casualty Payment, this Lease shall terminate with respect to the Item of Equipment for which the Casualty Payment was made, and Lessee and /or Lessee's insurer shall become entitled to such Item of Equipment, for salvage purposes, in such item's then condition and location, AS- IS- WHERE -IS, WITHOUT ANY WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE; OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED. For purposes of this Section 14, "Stipulated Loss Value" shall be determined through the following three steps: First step — the "Affected Equipment Percentage" shall be determined by dividing (1)the total cost to the Lessor to acquire the Equipment suffering the Casualty Occurrence b (2) the Lessor's Cost of all Equipment. Second step -- the "Unrecovered Investment" shall be