12-2834. Operating expenses; damage reserve fund; liability insurance.
12-2834
12-2834. Operating expenses; damage reserve fund; liability insurance.
The board shall withdraw from the gross receipts of the authority and
charge to operating expenses such an amount of money as in the opinion of
the board shall be sufficient to provide for the adjustment, defense and
satisfaction of all suits, claims, demands, rights and causes of action and
the payment and satisfaction of all judgments entered against the authority
for damage caused by injury to or death of any person and for damage to
property resulting from the construction, maintenance and operation of the
transportation system and the board shall deposit such moneys in a fund to
be known and designated as the damage reserve fund.
The board shall use the moneys in the damage reserve fund to pay all
expenses and costs arising from the adjustment, defense and satisfaction of
all suits, claims, demands, rights and causes of action and the payment and
satisfaction of all judgments entered against the authority for damages
caused by injury to or death of any person and for damage to property
resulting from the construction, maintenance and operation of the
transportation system. At any time and from time to time the board may
obtain and maintain insurance coverage or protection partially or wholly
insuring or indemnifying the authority against loss or liability on account
of injury to or death of any person and for damage to property resulting
from the construction, maintenance and operations of the transportation
system. The cost of obtaining and maintaining such insurance shall be paid
out of the moneys in the damage reserve fund. All moneys received from such
insurance coverage or protection shall be paid into the damage reserve
fund.
History: L. 1955, ch. 118, § 34; April 13.