Laserfiche WebLink
<br />, <br />escaping from such reservoir or as a result of the' faiiure or <br />partial failure of the structure or structures forming such <br />reservofr for which the owner shall have been found liable if <br />a valid liability insurance policy, or adequate substitute as <br />provided in paragraph. (b) of this subsection (3), has been <br />purchased by, the owner of the reservoir and is in effect at <br />the time such damage occurs. Such insurance policy shall <br />insure against such damages and provide coverage in an amount <br />of not less than fifty thousand dollars for each claim and in <br />an aggregate amount of not less than five hundred thousand <br />dollars for all claims which arise out of anyone incident. <br />The policy may provide that it does not apply to any act or <br />omission of a stockholder, officer, or member of a board of <br />directors of an owner if such act or omission is dishonest, <br />fraudul ent, ma li ci ous" or crimi na 1. The po I icy may a Iso <br />contain other reasonable provisions with respect to policy <br />periods, territory. claims, conditions, and other matters <br />common to such policies of insurance. The limitation of <br />liability pursuant to this paragrapn (a) shall not apply to <br />any criminal, fraudulent, or malicious act or omission by a <br />member of the board of directors of the owner, an officer of <br />the owner, or a stockholder of the owner, nor shall it apply <br />to any ultra vires act of the owner or' of a member of the <br />board of directors, an officer, or a stockholder of such <br />owner. The provisions of this paragraph, (a) shall not be <br />deemed to impose any liability upon a member of the board of <br />directors, an officer, or a stockholder of the owner of a <br />reservoir beyond that provided in section 7-42-118, C.R.S. <br /> <br />(b) An adequate subst'ftute for such insurance may be in <br />the form of: <br /> <br />(I) A good and sufficient bond, in an amount equal to <br />such 'recovery limitations duly executed by a qualified <br />corporate surety approved by the commissioner of insurance, <br />conditioned upon the payment by the entity or person who owns, <br />contra Is, or operates 'a water storage reservoir of any val i d <br />and fina J judgment for damages imposecL.\iithil'l_~_e_j.u..cJ9l!I~nt <br />'limHatlo-ns estaollsneorii tlils subsection (3); <br /> <br />(II) A good and sufficient escrow of acceptable <br />securities, as defined in section 24-91-102, C.R.S., or an <br />annual irrevocable letter or annual letters of credit issued <br />by any national or state bank or any bank for cooperatives as <br />chartered under Title III of the "Federal Farm Credit Act of <br />1971", as, amended, and deposited wi th an escrow agent pursuant <br />to an escrow contract or agreement requiring the escrow agent <br />to pay from the escrow account amounts necessary to discharge <br />a valid and final judgment for damages within the limits <br />established in this subsection (3). Such escrow contract or <br />agreement shall provide ,that it cannot be revoked or amended <br />until after any claims for damage against such entity or <br /> <br />PAGE 2-HOUSE BIll NO. 11B5 <br />