6

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