Common use of Insurance and Credit Support Clause in Contracts

Insurance and Credit Support. In addition to the contributions set forth in Section 5.2(a), Developer shall contribute (or cause the contribution of) One Million Dollars ($1,000,000) in all cash (the “Credit Support Contribution”) to the Agency. The Agency shall use the Credit Support Contribution as part of a surety bond and credit support program solely in connection with the Project. Such program, which will augment the Agency’s existing surety bond program, will provide security to assist contractors from BVHP in obtaining insurance and credit support that may be required in order to participate in the development of the Project. The obligation to contribute the Credit Support Contribution shall accrue and be made in installments of Two Hundred Fifty Thousand Dollars ($250,000) on the date that is sixty (60) days after each of the first four (4) Major Phase Approvals (but not including the Major Phase Approval of the Stadium Major Phase, if any). To the extent any of these funds remain in the Agency’s possession upon the final Completion of the Project, the Agency shall deposit such funds in the Community Benefits Fund. In addition, Developer shall work with the Agency to provide commercially reasonable insurance or risk-management policies or programs for the benefit of contractors from BVHP such that they may participate in the development of the Project.