12-2834.   Operating expenses; damage reserve fund; liability insurance. The board shall withdraw from the gross receipts of the authority andcharge to operating expenses such an amount of money as in the opinion ofthe board shall be sufficient to provide for the adjustment, defense andsatisfaction of all suits, claims, demands, rights and causes of action andthe payment and satisfaction of all judgments entered against the authorityfor damage caused by injury to or death of any person and for damage toproperty resulting from the construction, maintenance and operation of thetransportation system and the board shall deposit such moneys in a fund tobe known and designated as the damage reserve fund.

      The board shall use the moneys in the damage reserve fund to pay allexpenses and costs arising from the adjustment, defense and satisfaction ofall suits, claims, demands, rights and causes of action and the payment andsatisfaction of all judgments entered against the authority for damagescaused by injury to or death of any person and for damage to propertyresulting from the construction, maintenance and operation of thetransportation system. At any time and from time to time the board mayobtain and maintain insurance coverage or protection partially or whollyinsuring or indemnifying the authority against loss or liability on accountof injury to or death of any person and for damage to property resultingfrom the construction, maintenance and operations of the transportationsystem. The cost of obtaining and maintaining such insurance shall be paidout of the moneys in the damage reserve fund. All moneys received from suchinsurance coverage or protection shall be paid into the damage reservefund.

      History:   L. 1955, ch. 118, § 34; April 13.