40.16  Insurance Proceeds Account

The parties agree that:

(a)  subject to clause 40.18, all insurance proceeds received under any Physical Damage Policies shall be applied to repair, reinstate and replace each part or parts of the Facilities in respect of which the proceeds were received; and

(b)  all insurance proceeds paid under any Physical Damage Policy in respect of a single event (or a series of related events) in an amount in excess of £ (indexed) shall be paid into the Joint Insurance Account.