REQUIRED BY
INSTITUTIONAL LENDERS FOR SIMILAR PROPERTIES);
(VIII)
EARTHQUAKE INSURANCE, FOR PROPERTIES IN A HIGH
SEISMIC AREA (A) IN AN AMOUNT EQUAL TO ONE (1X) TIMES THE PROBABLE MAXIMUM LOSS
OF SUCH INDIVIDUAL PROPERTY, AS INDICATED IN THE APPLICABLE ENGINEERING REPORT,
WITH A DEDUCTIBLE REASONABLY APPROVED BY LENDER, (B) HAVING A DEDUCTIBLE
REASONABLY APPROVED BY LENDER AND SUBJECT TO RATING AGENCY CONFIRMATION (BUT IN
ANY EVENT EARTHQUAKE INSURANCE FOR SUCH INDIVIDUAL PROPERTY SHALL NOT BE IN
EXCESS OF 5% OF THE FULL REPLACEMENT COST OF SUCH INDIVIDUAL PROPERTY) AND (C)
IF SUCH INDIVIDUAL PROPERTY IS LEGALLY NONCONFORMING UNDER APPLICABLE ZONING
ORDINANCES AND CODES, CONTAINING ORDINANCE OF LAW COVERAGE;
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(IX)
UMBRELLA LIABILITY INSURANCE IN AN AMOUNT
NOT LESS THAN $200,000,000 PER OCCURRENCE ON TERMS CONSISTENT WITH THE
COMMERCIAL GENERAL LIABILITY INSURANCE POLICY REQUIRED UNDER SECTION 6.1(A)
HEREOF;
(X)
INSURANCE AGAINST TERRORISM, TERRORIST
ACTS OR SIMILAR ACTS OF SABOTAGE, BUT EXCLUDING ACTS OF WAR ("TERRORISM
INSURANCE") WITH COVERAGE AMOUNTS OF NOT LESS THAN AN AMOUNT EQUAL TO THE FULL
INSURABLE VALUE OF THE IMPROVEMENTS AND THE PERSONAL PROPERTY (THE "TERRORISM
INSURANCE REQUIRED AMOUNT"). THE BUSINESS INTERRUPTION/RENT LOSS INSURANCE
POLICY REQUIRED PURSUANT TO SECTION 6.1(A)(II) HEREOF SHALL NOT CONTAIN AN
EXCLUSION FROM COVERAGE UNDER SUCH POLICY FOR LOSS INCURRED AS A RESULT OF AN
ACT OF TERRORISM (BUT MAY CONTAIN AN EXCLUSION FOR ACTS OF WAR). IF TRIA OR
SIMILAR STATUE IS NOT IN EFFECT, THEN BORROWER SHALL BE REQUIRED TO, OR BORROWER
SHALL CAUSE MORTGAGE BORROWER TO, CARRY TERRORISM INSURANCE THROUGHOUT THE TERM
OF THE LOAN, AS REQUIRED BY THE PRECEDING SENTENCE, BUT IN SUCH EVENT NEITHER
BORROWER NOR MORTGAGE BORROWER SHALL BE REQUIRED TO SPEND ON TERRORISM INSURANCE
COVERAGE MORE THAN TWO TIMES THE AMOUNT OF THE INSURANCE PREMIUM THAT IS PAYABLE
AT SUCH TIME IN RESPECT OF THE ALL-RISK INSURANCE, EXCLUDING THE COST OF
EARTHQUAKE, FLOOD AND TERRORISM COVERAGE (AND IN SUCH EVENT SUCH TERRORISM
COVERAGE SHALL BE FROM SUCH INSURERS, AND WITH SUCH COVERAGE, AS SHALL BE
ACCEPTABLE TO LENDER IN ITS REASONABLE DISCRETION) (THE "TERRORISM INSURANCE
CAP") AND IF THE COST OF THE TERRORISM INSURANCE REQUIRED AMOUNT EXCEEDS THE
TERRORISM INSURANCE CAP, BORROWER SHALL, OR SHALL CAUSE MORTGAGE BORROWER TO,
PURCHASE THE MAXIMUM AMOUNT OF TERRORISM INSURANCE OBTAINABLE FOR A PREMIUM
EQUAL IN AMOUNT TO THE TERRORISM INSURANCE CAP; AND
(XI)
SUCH OTHER INSURANCE AND IN SUCH AMOUNTS AS
LENDER FROM TIME TO TIME MAY REASONABLY REQUEST AGAINST SUCH OTHER INSURABLE
HAZARDS WHICH AT THE TIME ARE COMMONLY INSURED AGAINST FOR PROPERTY SIMILAR TO
THE PROPERTIES LOCATED IN THE REGION IN WHICH THE PROPERTIES ARE LOCATED.
(B)
ALL INSURANCE PROVIDED FOR IN SECTION 6.1(A)
HEREOF SHALL BE OBTAINED UNDER VALID AND ENFORCEABLE POLICIES (COLLECTIVELY, THE
"POLICIES" OR IN THE SINGULAR, THE "POLICY"), IN SUCH FORMS AND, FROM TIME TO
TIME AFTER THE DATE HEREOF, SUBJECT TO THE TERMS OF SECTION 6.1(A) HEREOF, IN
SUCH AMOUNTS AS MAY BE REASONABLY SATISFACTORY TO LENDER. THE POLICIES SHALL BE
ISSUED BY FINANCIALLY SOUND AND RESPONSIBLE INSURANCE COMPANIES AUTHORIZED TO