any Material Agreement to which it
is a party, except as provided therein or on an arms'-length basis and
commercially reasonable terms; or (c) otherwise modify, change, supplement,
alter or amend, or waive or release any of its
44
rights and remedies under any Material Agreement to which it is a party in any
material respect, except on an arms'-length basis and commercially reasonable
terms.
V.
INSURANCE, CASUALTY AND CONDEMNATION
Section 5.1
Insurance.
5.1.1
Insurance Policies.
(a)
Borrower shall obtain and maintain, or
cause to be maintained, insurance for Borrower and the Property providing at
least the following coverages:
(I)
SO CALLED "ALL RISK" OR SPECIAL PERILS PROPERTY INSURANCE ON THE
IMPROVEMENTS AND THE PERSONAL PROPERTY AT THE PROPERTY (A) IN AN AMOUNT EQUAL TO
ONE HUNDRED PERCENT (100%) OF THE "FULL REPLACEMENT COST," WHICH FOR PURPOSES OF
THIS AGREEMENT SHALL MEAN ACTUAL REPLACEMENT VALUE (EXCLUSIVE OF COSTS OF
EXCAVATIONS, FOUNDATIONS, UNDERGROUND UTILITIES AND FOOTINGS) WITH A WAIVER OF
DEPRECIATION, BUT THE AMOUNT SHALL IN NO EVENT BE LESS THAN THE AGGREGATE
OUTSTANDING PRINCIPAL BALANCE OF THE LOAN; (B) CONTAINING AN AGREED AMOUNT
ENDORSEMENT WITH RESPECT TO THE IMPROVEMENTS AND PERSONAL PROPERTY AT THE
PROPERTY WAIVING ALL CO-INSURANCE PROVISIONS; (C) PROVIDING FOR NO DEDUCTIBLE IN
EXCESS OF TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) FOR ALL
SUCH INSURANCE COVERAGE; AND (D) INCLUDING CONTINGENT LIABILITY FROM THE
OPERATION OF BUILDING LAWS OR DEMOLITION COSTS AND INCREASED COST OF
CONSTRUCTION ENDORSEMENTS (IN EITHER CASE, "D&ICC ENDORSEMENT"), IN THE CASE OF
COVERAGE PARTS B AND C OF THE D&ICC ENDORSEMENT, WITH A SUBLIMIT OF NOT LESS
THAN TWENTY FIVE MILLION AND NO/100 DOLLARS ($25,000,000.00). IN ADDITION,
BORROWER SHALL OBTAIN: (Y) IF ANY PORTION OF THE IMPROVEMENTS IS CURRENTLY OR AT
ANY TIME IN THE FUTURE LOCATED IN A FEDERALLY DESIGNATED "SPECIAL FLOOD HAZARD
AREA," FLOOD HAZARD INSURANCE IN AN AMOUNT EQUAL TO THE LESSER OF (1) THE
AGGREGATE OUTSTANDING PRINCIPAL BALANCE OF THE LOAN OR (2) THE MAXIMUM AMOUNT OF
SUCH INSURANCE AVAILABLE UNDER THE NATIONAL FLOOD INSURANCE ACT OF 1968, THE
FLOOD DISASTER PROTECTION ACT OF 1973 OR THE NATIONAL FLOOD INSURANCE REFORM ACT
OF 1994, AS EACH MAY BE AMENDED OR SUCH GREATER AMOUNT AS LENDER SHALL REQUIRE;
AND (Z) EARTHQUAKE INSURANCE IN AMOUNTS AND IN FORM AND SUBSTANCE SATISFACTORY
TO LENDER IN THE EVENT THE PROPERTY IS LOCATED IN AN AREA WITH A HIGH DEGREE OF
SEISMIC ACTIVITY, PROVIDED THAT THE INSURANCE PURSUANT TO CLAUSES (Y) AND (Z)
HEREOF SHALL BE ON TERMS CONSISTENT WITH THE COMPREHENSIVE ALL RISK INSURANCE
POLICY REQUIRED UNDER THIS SUBSECTION (I) AND SHALL BE COMMERCIALLY AVAILABLE AT
A REASONABLE COST;
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT THE PROPERTY, SUCH INSURANCE (A) TO BE ON THE SO-CALLED "OCCURRENCE" FORM
WITH A COMBINED LIMIT, EXCLUDING UMBRELLA COVERAGE, OF NOT LESS THAN ONE MILLION
AND NO/100 DOLLARS ($1,000,000.00) PER OCCURRENCE AND TWO MILLION AND NO/100
DOLLARS ($2,000,000.00) IN THE AGGREGATE; (B)