§ 50.25. INSURANCE.

All loans made under this Chapter shall provide that the loan applicant shall maintain, throughout the term of the loan, fire and lightning insurance with an extended coverage endorsement and a vandalism and malicious mischief endorsement. Such insurance shall be in an amount equal to 100 percent of the replacement cost of the improvements or other work to be financed by the proceeds of the loan. If a loss occurs which results in the total destruction of the subject structure, the insurance policy shall provide payment to the City in the amount of the then outstanding loan balance. The Director shall promulgate regulations, in consultation with the Risk Manager, to determine the circumstances in which any additional insurance requirements may be imposed.

(Added by Ord. 69-84, App. 2/15/84)