TERRORISM
POLICY, WITH BORROWER PAYING SUCH PORTION OF THE INSURANCE PREMIUMS WITH RESPECT
THERETO EQUAL TO THE TERRORISM PREMIUM CAP AND THE LENDER PAYING SUCH PORTION OF
THE INSURANCE PREMIUMS IN EXCESS OF THE TERRORISM PREMIUM CAP OR (2) MODIFY THE
DEDUCTIBLE AMOUNTS, POLICY LIMITS AND OTHER REQUIRED POLICY TERMS TO REDUCE THE
INSURANCE PREMIUMS PAYABLE WITH RESPECT TO SUCH STAND-ALONE TERRORISM POLICY TO
THE TERRORISM PREMIUM CAP.
AS USED HEREIN, (I) "TERRORISM PREMIUM CAP" MEANS AN
AMOUNT EQUAL TO 150% OF THE AGGREGATE INSURANCE PREMIUMS PAYABLE WITH RESPECT TO
ALL THE INSURANCE COVERAGE UNDER SECTION 7.1.1(A) ABOVE FOR THE LAST POLICY YEAR
IN WHICH COVERAGE FOR TERRORISM WAS INCLUDED AS PART OF THE "ALL RISK" PROPERTY
POLICY REQUIRED BY SUBSECTION (A) ABOVE, ADJUSTED ANNUALLY BY A PERCENTAGE EQUAL
TO THE INCREASE IN THE CONSUMER PRICE INDEX (HEREINAFTER DEFINED) AND
(II) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS PUBLISHED BY THE BUREAU OF LABOR STATISTICS OF THE UNITED STATES
DEPARTMENT OF LABOR, NEW YORK METROPOLITAN STATISTICAL AREA, ALL ITEMS (1982-84
= 100), OR ANY SUCCESSOR INDEX THERETO, APPROXIMATELY ADJUSTED, AND IN THE EVENT
THAT THE CONSUMER PRICE INDEX IS CONVERTED TO A DIFFERENT STANDARD REFERENCE
BASE OR OTHERWISE REVISED, THE DETERMINATION OF ADJUSTMENTS PROVIDED FOR HEREIN
SHALL BE MADE WITH THE USE OF SUCH CONVERSION FACTOR, FORMULA OR TABLE FOR
CONVERTING THE CONSUMER PRICE INDEX AS MAY BE PUBLISHED BY THE BUREAU OF LABOR
STATISTICS OR, IF SAID BUREAU SHALL NOT PUBLISH THE SAME, THEN WITH THE USE OF
SUCH CONVERSION FACTOR, FORMULA OR TABLE AS MAY BE PUBLISHED BY PRENTICE-HALL,
INC., OR ANY OTHER NATIONALLY RECOGNIZED PUBLISHER OF SIMILAR STATISTICAL
INFORMATION; AND IF THE CONSUMER PRICE INDEX CEASES TO BE PUBLISHED, AND THERE
IS NO SUCCESSOR THERETO (I) SUCH OTHER INDEX AS LENDER AND BORROWER SHALL AGREE
UPON IN WRITING OR (II) IF LENDER AND BORROWER CANNOT AGREE ON A SUBSTITUTE
INDEX, SUCH OTHER INDEX, AS REASONABLY SELECTED BY LENDER.(1)
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 BELOW (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 above 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)
(provided, however for multi-layered policies, (A) if four (4) or less insurance
companies issue the Policies, then at least 75% of the insurance coverage
represented by the Policies must be provided by insurance companies with a
claims paying ability rating of "A" or better by S&P (and the equivalent by any
other Rating Agency), with no carrier below "BBB" (and the equivalent by any
other Rating Agency) or