WITH THE PROVISIONS OF THIS SECTION 7.1.
AGENT, IN ITS REASONABLE
DISCRETION, SHALL DETERMINE WHETHER SUCH BLANKET POLICIES PROVIDE SUFFICIENT
LIMITS OF INSURANCE.
80
(F)
ALL POLICIES OF INSURANCE PROVIDED FOR OR CONTEMPLATED BY
SUBSECTION 7.1(A), EXCEPT FOR THE POLICY REFERENCED IN SUBSECTION 7.1(A)(V),
SHALL NAME ADMINISTRATIVE AGENT, FOR THE BENEFIT OF LENDERS, AND BORROWER AS AN
ADDITIONAL INSURED, AS THEIR RESPECTIVE INTERESTS MAY APPEAR, AND IN THE CASE OF
PROPERTY DAMAGE, RENT LOSS, BUSINESS INTERRUPTION, BOILER AND MACHINERY,
EARTHQUAKE AND FLOOD INSURANCE, SHALL CONTAIN A SO-CALLED NEW YORK STANDARD
NONCONTRIBUTING MORTGAGEE CLAUSE (OR ITS EQUIVALENT) IN FAVOR OF ADMINISTRATIVE
AGENT, FOR THE BENEFIT OF LENDERS, PROVIDING THAT THE LOSS THEREUNDER SHALL BE
PAYABLE TO ADMINISTRATIVE AGENT FOR THE ACCOUNT OF LENDERS.
(G)
ALL PROPERTY POLICIES OF INSURANCE PROVIDED FOR IN
SUBSECTION 7.1(A) SHALL CONTAIN CLAUSES OR ENDORSEMENTS TO THE EFFECT THAT:
(I)
NO (A) ACT,
FAILURE TO ACT, VIOLATION OF WARRANTIES, DECLARATIONS OR CONDITIONS, OR
NEGLIGENCE BY BORROWER, OR ANYONE ACTING FOR BORROWER, OR BY ANY TENANT UNDER
ANY LEASE OR OTHER OCCUPANT, (B) OCCUPANCY OR USE OF THE PROPERTY FOR PURPOSES
MORE HAZARDOUS THAN THOSE PERMITTED, (C) EXERCISE BY ADMINISTRATIVE AGENT OF ANY
OF ITS RIGHTS OR REMEDIES HEREUNDER OR UNDER ANY OTHER LOAN DOCUMENT, OR (D)
FAILURE TO COMPLY WITH THE PROVISIONS OF ANY POLICY WHICH MIGHT OTHERWISE RESULT
IN A FORFEITURE OF THE INSURANCE OR ANY PART THEREOF, SHALL IN ANY WAY AFFECT
THE VALIDITY OR ENFORCEABILITY OF THE INSURANCE INSOFAR AS ADMINISTRATIVE AGENT
AND LENDERS ARE CONCERNED.
ALL POLICIES SHALL NOT BE TERMINATED OR CANCELLED
WITHOUT AT LEAST THIRTY (30) DAYS' (EXCEPT TEN (10) DAYS FOR NON-PAYMENT OF
PREMIUM) WRITTEN NOTICE TO ADMINISTRATIVE AGENT;
(II)
EACH POLICY
SHALL PROVIDE THAT (A) THE ISSUERS THEREOF SHALL GIVE WRITTEN NOTICE TO
ADMINISTRATIVE AGENT IF THE POLICY HAS NOT BEEN RENEWED THREE (3) BUSINESS DAYS
PRIOR TO ITS EXPIRATION AND (B) ADMINISTRATIVE AGENT IS PERMITTED TO MAKE
PAYMENTS TO EFFECT THE CONTINUATION OF SUCH POLICY UPON NOTICE OF CANCELLATION
DUE TO NON-PAYMENT OF INSURANCE PREMIUMS;
(III)
NEITHER
ADMINISTRATIVE AGENT NOR ANY LENDER SHALL BE LIABLE FOR ANY INSURANCE PREMIUMS
THEREON OR SUBJECT TO ANY ASSESSMENTS THEREUNDER; AND
(IV)
THE POLICIES
SHALL NOT EXCLUDE COVERAGE FOR ACTS OF TERROR OR SIMILAR ACTS OF TERRORISM.
(H)
IF AT ANY TIME ADMINISTRATIVE AGENT IS NOT IN RECEIPT OF
WRITTEN EVIDENCE THAT ALL INSURANCE REQUIRED HEREUNDER IS IN FULL FORCE AND
EFFECT, ADMINISTRATIVE AGENT SHALL HAVE THE RIGHT, WITH CONCURRENT NOTICE TO
BORROWER TO TAKE SUCH ACTION AS ADMINISTRATIVE AGENT DEEMS NECESSARY TO PROTECT
THE LENDERS' INTEREST IN THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE
OBTAINING OF SUCH INSURANCE COVERAGE AS ADMINISTRATIVE AGENT IN ITS SOLE
DISCRETION DEEMS APPROPRIATE (PROVIDED THAT ADMINISTRATIVE AGENT AGREES TO USE
COMMERCIALLY REASONABLE EFFORTS TO OBTAIN SUCH INSURANCE PURSUANT TO A
CANCELLABLE POLICY, THE PREMIUMS FOR WHICH WILL BE REFUNDABLE FOR THE PORTION OF
SUCH POLICY THAT IS TERMINATED), AND ALL OUT-OF-POCKET EXPENSES INCURRED BY
ADMINISTRATIVE AGENT IN CONNECTION WITH SUCH ACTION OR IN OBTAINING SUCH
INSURANCE