SECTIONS 31220-31223 - California Statutes

STREETS AND HIGHWAYS CODE

SECTION 31220-31223

31220. When the toll tunnel is being built by the authority, it may
carry or cause to be carried such an amount of insurance or
indemnity bond as protection against loss or damage as it deems
proper.

31221. The authority may carry insurance in such amount as it deems
proper to cover any accident or destruction in part or in whole to
the toll tunnel until all bonds sold for the acquisition or
construction of such toll tunnel and interest accrued thereon have
been fully redeemed and paid.

31222. All money collected on any indemnity bond or insurance
policy as the result of any damage or injury to the toll tunnel shall
be used for the purpose of repairing or rebuilding the toll tunnel,
as long as there are revenue bonds against such structure outstanding
and unredeemed.

31223. The authority may also carry insurance or indemnity bonds
insuring against the loss of tolls or other revenues to be derived
from the toll tunnel by reason of any interruption in the use of the
toll tunnel from any cause whatever. The proceeds of the insurance or
indemnity bonds shall be paid into the fund into which the tolls and
other revenues of the toll tunnel so insured are required to be paid
and shall be applied to the same purposes and in the same manner as
other money in the fund. The insurance or indemnity bonds may be in
an amount equal to the probable tolls and other revenues to be
received from the operation of the toll tunnel during any period of
time determined by the authority and fixed in its discretion, and may
be paid for out of the toll revenue fund as specified in the
proceedings.