12-5616.   Damage reserve fund.(a) The board shall withdraw from the gross receipts of theauthority andcharge tooperating expenses such an amount of money as in the opinion of the board shallbesufficient to provide for the adjustment, defense and satisfaction of allsuits, claims,demands, rights and causes of action and the payment and satisfaction of alljudgments entered against the authority for damage caused by injury to or deathofany person and for damage to property resulting from the construction,maintenanceand operation of the riverfront and the board shall deposit such moneys in afund tobe known and designated as the damage reserve fund.

      (b)   The board shall use the moneys in the damage reserve fund to pay allexpensesand costs arising from the adjustment, defense and satisfaction of all suits,claims,demands, rights and causes of action and the payment and satisfaction of alljudgments entered against the authority for damages caused by injury to ordeath ofany person and for damage to property resulting from the construction,maintenanceand operation of the authority. At any time and from time to time the board mayobtain and maintain insurance coverage or protection partially or whollyinsuring orindemnifying the authority against loss or liability on account of injury to ordeath of any person and for damage to property resulting from the construction,maintenanceand operations of the authority. The cost of obtaining and maintaining suchinsuranceshall be paid out of the moneys in the damage reserve fund. All moneys receivedfrom such insurance coverage or protection shall be paid into the damagereservefund.

      History:   L. 2006, ch. 83, § 16; July 1.