be entitled to rely upon any actions
taken by Lender or the designated servicer(s) or agent(s) for Lender, whether or
not within the scope of its power and authority under such other agreements.
Lender shall be responsible for the payment of all out-of-pocket expenses
incurred by the Lender in connection with any Secondary Market Transaction and
all of the reasonable out-of-pocket expenses in excess of $10,000 incurred by
the Borrower in connection with its compliance with this Section 5.1(w).
(X)
INSURANCE.
(I)
BORROWER, AT ITS SOLE COST AND EXPENSE, SHALL KEEP THE
IMPROVEMENTS AND EQUIPMENT INSURED (INCLUDING, BUT NOT LIMITED TO, ANY PERIOD OF
RENOVATION, ALTERATION AND/OR CONSTRUCTION) DURING THE TERM OF THE LOAN WITH THE
COVERAGE AND IN THE AMOUNTS
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REQUIRED UNDER THIS AGREEMENT FOR THE MUTUAL BENEFIT OF BORROWER AND LENDER
AGAINST LOSS OR DAMAGE BY FIRE, LIGHTNING, WIND AND SUCH OTHER PERILS AS ARE
CUSTOMARILY INCLUDED IN A STANDARD "ALL-RISK" OR "SPECIAL CAUSE OF LOSS" FORM
AND AGAINST LOSS OR DAMAGE BY OTHER RISKS AND HAZARDS COVERED BY A STANDARD
EXTENDED COVERAGE INSURANCE POLICY (WHICH INSURANCE SHALL IN ANY EVENT, ALWAYS
INCLUDE, WITHOUT LIMITATION, FIRE, LIGHTNING, HAIL, HURRICANE, WINDSTORM, TIDAL
WAVE, EXPLOSION, ACTS OF TERRORISM CERTIFIED UNDER THE TERRORISM RISK INSURANCE
ACT OF 2002, INCLUDING ANY AMENDMENTS OR EXTENSIONS THEREOF, "TRIA," RIOT AND
CIVIL COMMOTION, VANDALISM, MALICIOUS MISCHIEF, STRIKE, WATER DAMAGE, SPRINKLER
LEAKAGE, COLLAPSE, BURGLARY AND THEFT COVERAGE ARISING AS A RESULT OF COVERED
PERILS UNDER THE STANDARD "ALL RISK" POLICY AND SUCH OTHER COVERAGES AS MAY BE
REASONABLY REQUIRED BY LENDER ON THE SPECIAL FORM (FORMERLY KNOWN AS AN ALL RISK
FORM)). SUCH INSURANCE SHALL BE VALUED AT AN AMOUNT (I) EQUAL TO AT LEAST THE
THEN FULL REPLACEMENT COST OF THE IMPROVEMENTS AND EQUIPMENT (EXCLUSIVE OF THE
COST OF FOUNDATIONS AND FOOTINGS), (PROVIDED, HOWEVER, THAT BORROWER-OWNED
MANUFACTURED OR MOBILE HOMES MAY BE INSURED IN AN AMOUNT NOT LESS THAN THE
ACTUAL CASH VALUE OF SUCH HOMES) AND (II) SUCH THAT THE INSURER WOULD NOT DEEM
BORROWER A CO-INSURER UNDER SAID POLICIES. THE POLICIES OF INSURANCE CARRIED IN
ACCORDANCE WITH THIS SECTION 5.1(X) SHALL BE PAID NOT LESS THAN TEN (10) DAYS IN
ADVANCE OF THE DUE DATE THEREOF AND SHALL CONTAIN THE "REPLACEMENT COST
ENDORSEMENT" (EXCEPT WITH RESPECT TO BORROWER-OWNED MANUFACTURED OR MOBILE
HOMES). IF TERRORISM COVERAGE IS NOT INCLUDED AS AN ENDORSEMENT TO SUCH POLICY,
THEN BORROWER SHALL OBTAIN COVERAGE FOR TERRORISM AND SIMILAR ACTS IN THE STAND
ALONE TERRORISM MARKET IN AN AMOUNT EQUAL TO 100% OF THE "FULL REPLACEMENT COST"
OF THE MORTGAGED PROPERTY; PROVIDED, THAT NOTWITHSTANDING THE FOREGOING, WITH
RESPECT TO ANY SUCH STAND-ALONE POLICY COVERING TERRORIST ACTS, BORROWER SHALL
NOT BE REQUIRED TO PAY ANY INSURANCE PREMIUMS (HEREINAFTER DEFINED) SOLELY WITH
RESPECT TO SUCH TERRORISM COVERAGE IN EXCESS OF THE TERRORISM PREMIUM CAP
(HEREINAFTER DEFINED); PROVIDED THAT IF THE INSURANCE PREMIUMS PAYABLE WITH
RESPECT TO SUCH TERRORISM COVERAGE EXCEED THE TERRORISM PREMIUM CAP, LENDER MAY,
AT ITS OPTION EITHER (OR IN ANY COMBINATION) (1) PURCHASE SUCH STAND-ALONE
TERRORISM