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company or companies authorized and qualified under the laws of the State of North Carolina to assume the risks thereof, in amounts sufficient to provide for not less than full recovery whenever the loss from causes covered by such insurance does not exceed eighty per centum (80%) of the full insurable value of the damaged property. The proceeds of such insurance shall be available for the repair, replacement or reconstruction of any damaged or destroyed building or buildings, and, whenever the loss of revenues from any such damaged or destroyed building or buildings would reduce the Net Revenues of the Dormitory System below one and thirty-five hundredths (1.35) times the average annual Principal and Interest Requirements on account of all bonds then outstanding under this Resolution, such proceeds shall be applied to the extent necessary to the repair, replacement or reconstruction of the damaged or destroyed portion thereof. Any such proceeds not required for such repair, replacement or reconstruction shall be deposited to the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963. In all othe circumstances involving the damage or destruction of any building or buildings of the Dormitory System the Board may, in lieu of repairing, replacing or reconstructing the damaged or destroyed portion thereof, deposit such proceeds to the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963. If the proceeds of such insurance shall not be sufficient, with other available funds, to provide for the repair, replacement or reconstruction of the damaged or destroyed property to the extent that such property shall be returned substantially to its usefulness prior to such damage or destruction, such proceeds shall be deposited to the credit of the Dormitory System Bond and Interet Sinking Fund Account of 1963.

Section 710. The Board covenants that, if such insurance is not already in force, it will procure from a responsible insurance company authorized and qualified under the laws of the State of North Carolina to assume the risks thereof, and maintain so long as any of the bonds are outstanding, boiler insurance covering any steam boilers servicing the existing Dormitory System and, upon acceptance thereof from the contractor, the remainder of the Dormitory System, in a minimum amount of $50,000.

Section 711. The Board covenants that it will at all times carry in a responsible insurance company or companies authorized and qualified under the laws of the State of North Carolina to assume the risks thereof public liability and property damage insurance to protect the Board from claims for bodily injury or death which may arise from its operations at the Chapel Hill campus, including any use or occupancy of its grounds, structures and vehicles, in such amount as the Board shall deem to be reasonable and desirable but in no event less than $100,000 for one person and $300,000 for more than one person involved in one accident and $10,000 for property damage.

Section 712. The Board covenants that immediately upon the issuance and delivery of the 1963 Series A bonds, the 1963 Series B bonds, the 1963 Series C bonds, the 1963 Series D bonds and the 1963 Series E bonds, and thereafter whenever and for such period as the amount (including any investments) held for the credit of the Dormitory System Bond and Interest Sinking Fund Account of 1963 shall be less than the maximum requirement for the Dormitory System Bond and Interest Sinking Fund Account of 1963 at that time 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 Dormitory System Bond and Interest Sinking Fund Account of 1963 are less than said required amount, a policy or policies of use and occupancy insurance on each building of the existing Dormitory System and, immediately upon the occupancy of any portion thereof, the remainder of the Dormitory System, in an amount or amounts sufficient to enable the Board to deposit in the Dormitory System Bond and Interest Sinking Fund Account of 1963, out of the proceeds of such insurnace, the lesser of the following amounts: either (i) an amount sufficient to restore the Dormitory System Bond and Interest Sinking Fund Account of 1963 to the amount of the maximum requirement therefor at that time under the provisions of Section 503 of this Resolution, or (ii) an amount equal to the sum that would normally have been available for deposit in the Dormitory