REPLACEMENT COST COVERAGE ON A
NEW FOR OLD BASIS; (III) INCLUDE INSURANCE LIMITS IN AN AMOUNT NO LESS THAN THE
GREATER OF (A) $25,000,000, OR (B) 25% OF THE 100% REPLACEMENT VALUE OF THE
BUILDING ERECTED ON SUCH PROPERTY; (IV) INCLUDE A PROPERTY DAMAGE DEDUCTIBLE NOT
GREATER THAN $100,000 FOR PROPERTY DAMAGE AND A TWENTY FOUR (24) HOUR WAITING
PERIOD FOR BUSINESS INCOME OR RENT AND EXTRA EXPENSE.
(H)
WORKER'S COMPENSATION STATUTORY COVERAGE INCLUDING EMPLOYER'S
LIABILITY INSURANCE LIMITS OR NO LESS THAN $1,000,000/$1,000,000/$1,000,000.
58
(I)
DURING ANY PERIOD OF REPAIR OR RESTORATION, AND IF THE PROPERTY
AND LIABILITY FORM DO NOT OTHERWISE APPLY, BUILDER'S RISK "ALL-RISK" INSURANCE.
SUCH POLICY(IES) SHALL (I) UTILIZE A COMPLETED VALUE FORM; (II) INCLUDE ALL THE
TERMS REQUIRED IN SECTIONS 7.1.1, 7.1.2, AND 7.1.3 OF THIS AGREEMENT AND COVER
100% OF THE TOTAL COSTS OF CONSTRUCTION; (III) INCLUDE FOUNDATIONS, EXCAVATIONS,
UNDERGROUND MACHINERY OR EQUIPMENT, RETAINING WALLS, AND ALL PAVED SURFACES;
(VI) MAINTAIN SUB-LIMITS FOR EACH OF THE PERILS OF FLOOD AND EARTHQUAKE TO BE
THE GREATER OF (A) $10,000,000, (B) 25% OF THE 100% REPLACEMENT VALUE OF THE
PROJECT, OR (C) THE AMOUNT OTHERWISE SPECIFIED BY LENDER; (VII) ALLOW FOR
PERMISSION TO OCCUPY AS LENDER MAY REQUEST, IN FORM AND SUBSTANCE ACCEPTABLE TO
LENDER, OR AT LENDER'S REASONABLE DISCRETION, EQUIVALENT INSURANCE PROVIDED IN
SECTION 7.1.
(J)
[RESERVED]
(K)
EMPLOYEE DISHONESTY (FIDELITY BOND).
SUCH POLICY SHALL (I) COVER
ALL EMPLOYEES OF THE BORROWERS; (II) MAINTAIN LIMIT OF $500,000 OR AS OTHERWISE
STATED BY THE LENDER; AND (III) COVER ALL MEMBERS OF THE COOPERATIVE BOARD IF
THE PROJECT IS A COOPERATIVE ENTITY OR MEMBERS OF THE CONDOMINIUM BOARD IF THE
PROJECT IS A CONDOMINIUM.
(L)
PROFESSIONAL LIABILITY INSURANCE (ERRORS & OMISSIONS), SHALL BE
MAINTAINED FOR EACH ARCHITECT, ENGINEER AND OTHER PROFESSIONALS.
SUCH POLICY
SHALL: (I) MAINTAIN LIMITS OF $5,000,000, OR OTHER LIMITS SATISFACTORY TO
LENDER, PER OCCURRENCE, AND IN THE AGGREGATE; (II) BE WRITTEN ON A CLAIMS MADE
BASIS, WITH A RETROACTIVE DATE NO LATER THAN THE COMMENCEMENT OF THE
PROFESSIONAL'S EFFECTIVE DATE OF SERVICE; (III) IF POLICY IS TERMINATED, AN
EXTENDED DISCOVERY PERIOD (TAIL COVERAGE) SHALL BE PURCHASED FOR A PERIOD OF NO
LESS THAN THREE (3) EXTENDED YEARS, SPECIFIC TO THIS PROJECT; AND (IV) MAINTAIN
A DEDUCTIBLE NOT TO EXCEED $50,000.
(M)
IF COMMERCIALLY AVAILABLE, SUCH OTHER INSURANCE AS MAY FROM TIME TO
TIME BE REASONABLY REQUIRED BY LENDER IN ORDER TO PROTECT ITS INTERESTS.
(N)
NOTWITHSTANDING ANYTHING IN SUBSECTION (A) ABOVE TO THE CONTRARY,
THE BORROWERS SHALL BE REQUIRED TO OBTAIN AND MAINTAIN COVERAGE IN THEIR
PROPERTY AND BUSINESS INCOME (INCLUDING RENTS) INSURANCE POLICIES (OR BY
SEPARATE POLICIES) AGAINST LOSS OR DAMAGE BY TERRORISM IN AN AMOUNT EQUAL TO
100% OF THE "FULL REPLACEMENT COST" OF SUCH PROPERTY AND FOLLOWING THE TERMS AND
CONDITIONS OF SECTIONS 7.1(A) AND (F); PROVIDED THAT SUCH COVERAGE IS
COMMERCIALLY AVAILABLE.
IN THE EVENT THAT SUCH COVERAGE WITH RESPECT TO
TERRORIST ACTS IS NOT INCLUDED AS PART OF THE "ALL RISK" PROPERTY AND BUSINESS
INCOME (INCLUDING RENTS) POLICY REQUIRED