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).
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT EACH INDIVIDUAL
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PROPERTY, SUCH INSURANCE (A) TO BE ON THE SO-CALLED "OCCURRENCE" FORM WITH A
COMBINED LIMIT, INCLUDING UMBRELLA COVERAGE, OF NOT LESS THAN FIVE MILLION AND
NO/100 DOLLARS ($5,000,000.00); (B) TO CONTINUE AT NOT LESS THAN THE AFORESAID
LIMIT UNTIL REQUIRED TO BE CHANGED BY LENDER IN WRITING BY REASON OF CHANGED
ECONOMIC CONDITIONS MAKING SUCH PROTECTION INADEQUATE; AND (C) TO COVER AT LEAST
THE FOLLOWING HAZARDS:
(1) PREMISES AND OPERATIONS; (2) PRODUCTS AND COMPLETED
OPERATIONS ON AN "IF ANY" BASIS; (3) INDEPENDENT CONTRACTORS; (4) BLANKET
CONTRACTUAL LIABILITY FOR ALL LEGAL CONTRACTS; AND (5) CONTRACTUAL LIABILITY
COVERING THE INDEMNITIES CONTAINED IN ARTICLE IX OF THE MORTGAGES TO THE EXTENT
THE SAME IS AVAILABLE;
(III)
BUSINESS INCOME INSURANCE (A) WITH LOSS PAYABLE TO LENDER;
(B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE INSURANCE PROVIDED FOR IN
SUBSECTION (I) ABOVE; (C) COVERING RENTAL LOSSES OR BUSINESS INTERRUPTION, AS
MAY BE APPLICABLE, FOR A PERIOD OF AT LEAST TWENTY-FOUR (24) MONTHS AFTER THE
DATE OF THE CASUALTY AND CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT
WHICH PROVIDES THAT AFTER THE PHYSICAL LOSS TO THE IMPROVEMENTS AND PERSONAL
PROPERTY HAS BEEN REPAIRED, THE CONTINUED LOSS OF INCOME WILL BE INSURED UNTIL
SUCH INCOME EITHER RETURNS TO THE SAME LEVEL IT WAS AT PRIOR TO THE LOSS, OR THE
EXPIRATION OF SIX (6) MONTHS FROM THE DATE THAT THE APPLICABLE INDIVIDUAL
PROPERTY IS REPAIRED OR REPLACED AND OPERATIONS ARE RESUMED, WHICHEVER FIRST
OCCURS, AND NOTWITHSTANDING THAT THE POLICY MAY EXPIRE PRIOR TO THE END OF SUCH
PERIOD; AND (D) IN AN ANNUAL AMOUNT EQUAL TO (100%) OF THE RENTS OR ESTIMATED
GROSS REVENUES FROM THE OPERATION OF THE APPLICABLE INDIVIDUAL PROPERTY (AS
REDUCED TO REFLECT EXPENSES NOT INCURRED DURING A PERIOD OF RESTORATION).
THE
AMOUNT OF SUCH BUSINESS INCOME INSURANCE SHALL BE DETERMINED PRIOR TO THE DATE
HEREOF AND AT LEAST ONCE EACH YEAR THEREAFTER BASED ON BORROWER'S REASONABLE
ESTIMATE OF THE GROSS INCOME FROM EACH INDIVIDUAL PROPERTY FOR THE SUCCEEDING
TWENTY-FOUR (24) MONTH PERIOD.
ALL PROCEEDS PAYABLE TO LENDER PURSUANT TO THIS
SUBSECTION SHALL BE HELD BY LENDER AND SHALL BE APPLIED TO THE OBLIGATIONS
SECURED BY THE LOAN DOCUMENTS FROM TIME TO TIME DUE AND PAYABLE HEREUNDER AND
UNDER THE NOTE; PROVIDED, HOWEVER, THAT NOTHING HEREIN CONTAINED SHALL BE DEEMED
TO RELIEVE BORROWER OF ITS OBLIGATIONS TO PAY THE OBLIGATIONS SECURED BY THE
LOAN DOCUMENTS ON THE RESPECTIVE DATES OF PAYMENT PROVIDED FOR IN THE NOTE, THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS EXCEPT TO THE EXTENT SUCH AMOUNTS ARE
ACTUALLY PAID OUT OF THE PROCEEDS OF SUCH BUSINESS INCOME INSURANCE;
(IV)
AT ALL TIMES DURING WHICH STRUCTURAL CONSTRUCTION, REPAIRS OR
ALTERATIONS ARE BEING MADE