WRITING OR (II) IF LENDER AND BORROWER CANNOT AGREE
ON A SUBSTITUTE INDEX, SUCH OTHER INDEX, AS REASONABLY SELECTED BY LENDER.
BORROWER SHALL OBTAIN THE COVERAGE REQUIRED UNDER THIS SUBSECTION (J) FROM A
CARRIER WHICH OTHERWISE SATISFIES THE RATING CRITERIA SPECIFIED IN SECTION 7.1.2
(A "QUALIFIED CARRIER") OR IN THE EVENT THAT SUCH COVERAGE IS NOT AVAILABLE FROM
A QUALIFIED CARRIER, BORROWER SHALL OBTAIN SUCH COVERAGE FROM THE HIGHEST RATED
INSURANCE COMPANY PROVIDING SUCH COVERAGE.
7.1.2
POLICIES.
ALL POLICIES OF INSURANCE (THE "POLICIES")
REQUIRED PURSUANT TO SECTION 7.1.1 SHALL (I) BE ISSUED BY COMPANIES APPROVED BY
LENDER AND LICENSED TO DO BUSINESS IN THE STATE, WITH A CLAIMS PAYING ABILITY
RATING OF "A" OR BETTER BY S&P (AND THE EQUIVALENT BY ANY OTHER RATING AGENCY)
AND A RATING OF A:VIII OR BETTER IN THE CURRENT BEST'S INSURANCE REPORTS;
(II) NAME LENDER AND ITS SUCCESSORS AND/OR ASSIGNS AS THEIR INTEREST MAY APPEAR
AS THE MORTGAGEE (IN THE CASE OF PROPERTY INSURANCE), LOSS PAYEE (IN THE CASE OF
BUSINESS INTERRUPTION/LOSS OF RENTS COVERAGE) AND AN ADDITIONAL INSURED (IN THE
CASE OF LIABILITY INSURANCE); (III) CONTAIN (IN THE CASE OF PROPERTY INSURANCE)
A NON-CONTRIBUTORY STANDARD MORTGAGEE CLAUSE AND A LENDER'S LOSS PAYABLE
ENDORSEMENT, OR THEIR EQUIVALENTS, NAMING LENDER AS THE PERSON TO WHICH ALL
PAYMENTS MADE BY SUCH INSURANCE COMPANY SHALL BE PAID; (IV) CONTAIN A WAIVER OF
SUBROGATION AGAINST LENDER; (V) BE ASSIGNED AND THE ORIGINALS THEREOF DELIVERED
TO LENDER, OR IN LIEU OF DELIVERING ORIGINALS OF THE POLICIES, BORROWER MAY, ON
AN ANNUAL BASIS, DELIVER ACORD EVIDENCES OF COVERAGES OR THE EQUIVALENT, AS
ADEQUATE PROOF OF COVERAGE; PROVIDED, HOWEVER, IF AT ANY TIME, LENDER REQUESTS
CARRIER CERTIFICATION OF POLICIES, BORROWER SHALL DELIVER SUCH CERTIFICATION
WITHIN TEN (10) DAYS OF LENDER'S REQUEST THEREFOR; (VI) CONTAIN SUCH PROVISIONS
AS LENDER DEEMS REASONABLY NECESSARY OR DESIRABLE TO PROTECT ITS INTEREST,
INCLUDING (A) ENDORSEMENTS PROVIDING THAT NEITHER BORROWER, LENDER NOR ANY OTHER
PARTY SHALL BE A CO-INSURER UNDER THE POLICIES, (B) THAT LENDER SHALL RECEIVE AT
LEAST 30 DAYS' PRIOR WRITTEN NOTICE OF ANY MODIFICATION, REDUCTION OR
CANCELLATION OF ANY OF THE POLICIES, (C) AN AGREEMENT WHEREBY THE INSURER WAIVES
ANY RIGHT TO CLAIM ANY PREMIUMS AND COMMISSIONS AGAINST LENDER, PROVIDED THAT
THE POLICY NEED NOT WAIVE THE REQUIREMENT THAT THE PREMIUM BE PAID IN ORDER FOR
A CLAIM TO BE PAID TO THE INSURED AND (D) PROVIDING THAT LENDER IS PERMITTED TO
MAKE PAYMENTS TO EFFECT THE CONTINUATION OF SUCH POLICY UPON NOTICE OF
CANCELLATION DUE TO NON-PAYMENT OF PREMIUMS; (VII) IN THE EVENT ANY INSURANCE
POLICY (EXCEPT FOR GENERAL PUBLIC AND OTHER LIABILITY AND WORKERS COMPENSATION
INSURANCE) SHALL CONTAIN BREACH OF WARRANTY PROVISIONS, SUCH POLICY SHALL
PROVIDE THAT WITH RESPECT TO THE INTEREST OF LENDER, SUCH INSURANCE POLICY SHALL
NOT BE INVALIDATED BY AND SHALL INSURE LENDER REGARDLESS OF (A) ANY ACT, FAILURE
TO ACT OR NEGLIGENCE OF OR VIOLATION OF WARRANTIES, DECLARATIONS OR CONDITIONS
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CONTAINED IN SUCH POLICY BY ANY NAMED INSURED, (B) THE OCCUPANCY OR USE OF THE
PREMISES