OR ANY
INSURER IN SUCH SYNDICATE BE LESS THAN "BBB" BY S&P, AND A RATING OF "A X" OR
BETTER IN THE CURRENT AM BEST'S KEY RATING GUIDE.
NOTWITHSTANDING THE
FOREGOING, BORROWER MAY SECURE THE FINAL $30,000,000 COVERAGE LAYER, WHICH
REPRESENTS LESS THAN 2.5% OF THE TOTAL INSURED VALUE, THROUGH INSURANCE COMPANY
OF THE WEST AN INSURER ADMITTED IN THE STATE OF NEVADA, SO LONG AS THE SAME
REMAINS BACKED BY THE NEVADA INSURANCE GUARANTY ASSOCIATION.
THE POLICIES
DESCRIBED IN SECTION 6.1(A) (OTHER THAN THOSE STRICTLY LIMITED TO LIABILITY
PROTECTION) SHALL DESIGNATE LENDER AS LOSS PAYEE.
NOT LESS THAN TEN (10) DAYS
PRIOR TO THE EXPIRATION DATES OF THE POLICIES THERETOFORE FURNISHED TO LENDER,
CERTIFICATES OF INSURANCE EVIDENCING THE POLICIES ACCOMPANIED BY EVIDENCE
SATISFACTORY TO LENDER OF PAYMENT OF THE PREMIUMS DUE THEREUNDER (THE "INSURANCE
PREMIUMS"), SHALL BE DELIVERED BY BORROWER TO LENDER.
(C)
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 SECTION 6.1(A).
(D)
ALL POLICIES PROVIDED FOR OR CONTEMPLATED BY SECTION 6.1(A),
EXCEPT FOR THE POLICY REFERENCED IN SECTION 6.1(A)(V), SHALL NAME BORROWER AS
THE INSURED AND LENDER AS THE ADDITIONAL INSURED, AS ITS INTERESTS MAY APPEAR,
AND IN THE CASE OF PROPERTY DAMAGE, BOILER AND MACHINERY, FLOOD AND EARTHQUAKE
INSURANCE, SHALL CONTAIN A STANDARD NON-CONTRIBUTING MORTGAGEE CLAUSE IN FAVOR
OF LENDER PROVIDING THAT THE LOSS THEREUNDER SHALL BE PAYABLE TO LENDER.
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(E)
ALL POLICIES PROVIDED FOR IN SECTION 6.1 SHALL CONTAIN CLAUSES OR
ENDORSEMENTS TO THE EFFECT THAT:
(I)
NO ACT OR NEGLIGENCE OF BORROWER, OR ANYONE ACTING FOR BORROWER,
OR OF ANY TENANT OR OTHER OCCUPANT, OR 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 LENDER IS CONCERNED;
(II)
THE POLICIES SHALL NOT BE MATERIALLY CHANGED (OTHER THAN TO
INCREASE THE COVERAGE PROVIDED THEREBY) OR CANCELED WITHOUT AT LEAST THIRTY (30)
DAYS' NOTICE TO LENDER AND ANY OTHER PARTY NAMED THEREIN AS AN ADDITIONAL
INSURED;
(III)
THE ISSUERS THEREOF SHALL GIVE NOTICE TO LENDER IF THE POLICIES
HAVE NOT BEEN RENEWED FIFTEEN (15) DAYS PRIOR TO ITS EXPIRATION; AND
(IV)
LENDER SHALL NOT BE LIABLE FOR ANY INSURANCE PREMIUMS THEREON OR
SUBJECT TO ANY ASSESSMENTS THEREUNDER.
(F)
IF AT ANY TIME LENDER IS NOT IN RECEIPT OF WRITTEN EVIDENCE THAT
ALL POLICIES ARE IN FULL FORCE AND EFFECT, LENDER SHALL HAVE THE RIGHT, WITHOUT
NOTICE TO BORROWER, TO TAKE SUCH ACTION AS LENDER DEEMS NECESSARY TO PROTECT ITS
INTEREST IN THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE OBTAINING OF SUCH
INSURANCE COVERAGE AS LENDER IN ITS SOLE DISCRETION DEEMS APPROPRIATE.
ALL
PREMIUMS INCURRED BY LENDER IN CONNECTION WITH SUCH ACTION OR IN OBTAINING SUCH
INSURANCE AND KEEPING IT IN EFFECT SHALL BE