FOR PURPOSES MORE HAZARDOUS THAN PERMITTED BY THE TERMS THEREOF, OR (C)
ANY FORECLOSURE OR OTHER ACTION OR PROCEEDING TAKEN BY LENDER PURSUANT TO ANY
PROVISION OF THE LOAN DOCUMENTS; AND (VIII) BE SATISFACTORY IN FORM AND
SUBSTANCE TO LENDER AND APPROVED BY LENDER AS TO AMOUNTS, FORM, RISK COVERAGE,
DEDUCTIBLES, LOSS PAYEES AND INSUREDS.
BORROWER SHALL PAY THE PREMIUMS FOR SUCH
POLICIES (THE "INSURANCE PREMIUMS") AS THE SAME BECOME DUE AND PAYABLE AND
FURNISH TO LENDER EVIDENCE OF THE RENEWAL OF EACH OF THE POLICIES TOGETHER WITH
(UNLESS SUCH INSURANCE PREMIUMS HAVE BEEN PAID BY LENDER PURSUANT TO
SECTION 3.3) RECEIPTS FOR OR OTHER EVIDENCE OF THE PAYMENT OF THE INSURANCE
PREMIUMS REASONABLY SATISFACTORY TO LENDER.
IF BORROWER DOES NOT FURNISH SUCH
EVIDENCE AND RECEIPTS AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE EXPIRATION OF
ANY EXPIRING POLICY, THEN LENDER MAY, BUT SHALL NOT BE OBLIGATED TO, PROCURE
SUCH INSURANCE AND PAY THE INSURANCE PREMIUMS THEREFOR, AND BORROWER SHALL
REIMBURSE LENDER FOR THE COST OF SUCH INSURANCE PREMIUMS PROMPTLY ON DEMAND,
WITH INTEREST ACCRUING AT THE DEFAULT RATE.
BORROWER SHALL DELIVER TO LENDER A
CERTIFIED COPY OF EACH POLICY WITHIN 30 DAYS AFTER ITS EFFECTIVE DATE.
WITHIN
30 DAYS AFTER REQUEST BY LENDER, BORROWER SHALL OBTAIN SUCH INCREASES IN THE
AMOUNTS OF COVERAGE REQUIRED HEREUNDER AS MAY BE REASONABLY REQUESTED BY LENDER,
TAKING INTO CONSIDERATION CHANGES IN THE VALUE OF MONEY OVER TIME, CHANGES IN
LIABILITY LAWS, CHANGES IN PRUDENT CUSTOMS AND PRACTICES, AND THE LIKE.
BORROWER SHALL NOT OBTAIN ANY UMBRELLA OR BLANKET LIABILITY OR CASUALTY POLICY
UNLESS, IN EACH CASE, SUCH POLICY IS APPROVED IN ADVANCE IN WRITING BY LENDER
AND LENDER'S INTEREST IS INCLUDED THEREIN AS PROVIDED IN THIS AGREEMENT AND SUCH
POLICY IS ISSUED BY A QUALIFIED CARRIER.
IN THE EVENT BORROWER OBTAINS AN
UMBRELLA OR A BLANKET POLICY, BORROWER SHALL NOTIFY LENDER OF THE SAME AND SHALL
CAUSE CERTIFIED COPIES OF EACH POLICY TO BE DELIVERED AS REQUIRED IN THIS
SECTION 7.1.
ANY BLANKET INSURANCE POLICY SHALL SPECIFICALLY ALLOCATE TO THE
PROPERTY THE AMOUNT OF COVERAGE FROM TIME TO TIME REQUIRED HEREUNDER AND SHALL
OTHERWISE PROVIDE THE SAME PROTECTION AS WOULD A SEPARATE POLICY INSURING ONLY
THE PROPERTY IN COMPLIANCE WITH THE PROVISIONS OF THIS SECTION 7.1.
7.2
CASUALTY.
7.2.1
NOTICE; RESTORATION.
IF THE PROPERTY IS DAMAGED OR
DESTROYED, IN WHOLE OR IN PART, BY FIRE OR OTHER CASUALTY (A "CASUALTY"),
BORROWER SHALL GIVE PROMPT NOTICE THEREOF TO LENDER.
FOLLOWING THE OCCURRENCE
OF A CASUALTY, BORROWER, REGARDLESS OF WHETHER INSURANCE PROCEEDS ARE AVAILABLE
(UNLESS LENDER HAS BREACHED ITS OBLIGATION (IF ANY) TO MAKE SUCH INSURANCE
PROCEEDS AVAILABLE PURSUANT TO SECTION 7.4.1), SHALL PROMPTLY PROCEED TO
RESTORE, REPAIR, REPLACE OR REBUILD THE PROPERTY IN ACCORDANCE WITH LEGAL
REQUIREMENTS TO BE OF AT LEAST EQUAL VALUE AND OF SUBSTANTIALLY THE SAME
CHARACTER AS PRIOR TO SUCH DAMAGE OR DESTRUCTION.
7.2.2
SETTLEMENT OF PROCEEDS.
IF A CASUALTY COVERED BY ANY
OF THE POLICIES (AN "INSURED CASUALTY") OCCURS WHERE THE LOSS DOES NOT EXCEED
$250,000, PROVIDED NO