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;
104
(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 DO BUSINESS
IN THE STATE IN WHICH THE INDIVIDUAL PROPERTY IS LOCATED