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MINUTES OF FEBRUARY 23, 1959 BOARD OF TRUSTEES MEETING CONTINUED.
desirable but in no event less than $$0,000 for one person and $100,000 for one accident and $10,000 for property damage.
Section 712. The Board covenants that immediately upon occupancy of any portion of the Project and thereafter whenever and for such period as the amount held for the credit of the Sinking Fund shall be less than the maximum requirement for the Sinking Fund under the provisions of Section 503 of this Resolution, it will procure from a responsible insurance company or companies authorized and qualified under the laws of the State of North Carolina to assume the risks thereof, and maintain so long as the funds and investments of the Sinking Fund are less than said required amount, a policy or policies of use and occupancy insurance on the Project in an amount or amounts sufficient to enable the Board to deposit in the Sinking Fund, out of the proceeds of such insurance, an amount equal to the sum that would normally have been available for deposit in the Sinking Fund from the Revenues of the Project during the period the Project is non-revenue producing or the revenues therefrom are diminished by reason of loss of use caused by the perils covered by fire and extended coverage insurance. Any proceeds of use and occupancy insurance shall be deposited to the credit of the Sinking Fund.
Section 713. The Board covenants that no contract or contracts will be entered into or any action taken by which the rights of the bondholders might be impaired or diminished.
Section 714. The Board covenants that it will keep accurate records and accounts of all items of cost and of all expenditures relating to the Project and of the Revenues thereof collected by it and the application of such Revenues. Such records and accounts shall be open to the inspection of the bondholders and their a gents and representatives. The Board further covenants that, not later than ninety (90) days after the close of each fiscal year, it will file with the Secretary of the Board and will mail to the registered owners of the bonds then outstanding at their addresses as they shall appear on the registration books and to all other bondholders who shall have filed their names and addresses with the Secretary of the Board for such purpose and, if any agency of the United States of America is the holder of any bonds, to such agency, an audit report for the preceding
