THIRTY (30) DAYS
AFTER THE END OF EACH CALENDAR MONTH OCCURRING SUBSEQUENT TO THE COMMENCEMENT OF
CONSTRUCTION OF ANY CONSTRUCTION PROJECT AND CONTINUING UNTIL FORTY-FIVE (45)
DAYS AFTER FINAL COMPLETION OF SUCH CONSTRUCTION PROJECT, BORROWERS SHALL SUBMIT
A WRITTEN REPORT TO AGENT BANK AND TO LENDERS' CONSULTANT REPORTING ON THE
STATUS OF SUCH CONSTRUCTION, INCLUDING, WITHOUT LIMITATION, PERCENTAGE OF
COMPLETION, LINE ITEM BREAKDOWN OF AMOUNTS EXPENDED AND AMOUNTS REMAINING TO BE
EXPENDED TO COMPLETION AND COMPARISON TO THE APPROVED CONSTRUCTION BUDGETS,
INCLUDING, WITHOUT LIMITATION, ANY CHANGES, VARIANCES AND/OR OVERAGES TO THE
LINE ITEMS, SCOPE OR TOTAL COSTS OF SUCH CONSTRUCTION PROJECT.
I.
OTHER INFORMATION.
UNTIL CREDIT FACILITY TERMINATION,
BORROWERS, AND EACH OF THEM, SHALL FURNISH TO AGENT BANK, WITH SUFFICIENT COPIES
FOR
85
DISTRIBUTION TO EACH OF THE BANKS, ANY FINANCIAL INFORMATION OR OTHER
INFORMATION BEARING ON THE FINANCIAL STATUS OF THE BORROWERS, OR ANY OF THEM,
WHICH IS REASONABLY REQUESTED BY AGENT BANK OR REQUISITE LENDERS.
SECTION 5.09.
INSURANCE.
UNTIL CREDIT FACILITY TERMINATION, BORROWERS
SHALL OBTAIN, OR CAUSE TO BE OBTAINED, AND SHALL MAINTAIN OR CAUSE TO BE
MAINTAINED WITH RESPECT TO THE COLLATERAL, AT THEIR OWN COST AND EXPENSE, AND
HAVE DEPOSITED WITH AGENT BANK THE FOLLOWING COVERAGES:
A.
PROPERTY INSURANCE.
BORROWERS SHALL MAINTAIN A SPECIAL CAUSES OF
LOSS ("ALL RISK" - ISO FORM OR EQUIVALENT), PERILS POLICY COVERING THE BUILDINGS
AND IMPROVEMENTS, AND ANY OTHER PERMANENT STRUCTURES FOR ONE HUNDRED PERCENT
(100%) OF THE REPLACEMENT COST.
BORROWERS SHALL MAINTAIN A TEN MILLION DOLLAR
($10,000,000.00) LIMIT OF COVERAGE FOR THE PERILS OF FLOOD AND EARTHQUAKE
COVERING THE COLLATERAL.
UPON THE REQUEST OF AGENT BANK, REPLACEMENT COST FOR
INSURANCE PURPOSES WILL BE ESTABLISHED BY AN INDEPENDENT APPRAISER MUTUALLY
SELECTED BY BORROWERS AND AGENT BANK.
THE POLICY WILL INCLUDE AGREED AMOUNT
(WAIVING CO-INSURANCE), REPLACEMENT COST VALUATION AND BUILDING ORDINANCE
ENDORSEMENTS.
THE POLICY WILL INCLUDE A STANDARD MORTGAGEE CLAUSE (ISO FORM OR
EQUIVALENT, I.E. BORROWER'S ACTS WILL NOT IMPAIR MORTGAGEE'S RIGHT TO RECOVER,
EXCLUSIVE PAYMENT OF LOSS TO MORTGAGEE AND AUTOMATIC NOTICE OF CANCELLATION OR
NON-RENEWAL TO MORTGAGEE) AND PROVIDE THAT ALL LOSSES IN EXCESS OF TWO HUNDRED
THOUSAND DOLLARS ($200,000.00) BE ADJUSTED WITH THE AGENT BANK.
THE BORROWERS
WAIVE ANY AND ALL RIGHTS OF SUBROGATION AGAINST BANKS RESULTING FROM LOSSES TO
PROPERTY.
B.
PERSONAL PROPERTY (INCLUDING MACHINERY, EQUIPMENT, FURNITURE,
FIXTURES, STOCK).
BORROWERS SHALL MAINTAIN A SPECIAL CAUSES OF LOSS ("ALL
RISK") PERILS PROPERTY COVERAGE FOR ALL PERSONAL PROPERTY OWNED, LEASED OR FOR
WHICH BORROWERS ARE LEGALLY LIABLE.
THE COVERAGE WILL INCLUDE A LENDERS' LOSS
PAYABLE ENDORSEMENT IN FAVOR OF AGENT BANK.
The policy providing real property and personal property coverages, as specified
in 5.09(a) and (b) hereinabove, may include a deductible of no more than
Twenty-Five Thousand Dollars ($25,000.00) for any single occurrence.
Flood and
earthquake deductibles can be no more than Two Hundred Fifty Thousand Dollars
($250,000.00), if a separate deductible applies.
C.
BUSINESS INTERRUPTION/EXTRA EXPENSE.
BORROWERS SHALL MAINTAIN
COMBINED BUSINESS INTERRUPTION/EXTRA EXPENSE COVERAGE FOR THE HOTEL/CASINO
FACILITIES WITH A LIMIT REPRESENTING NO LESS THAN EIGHTY PERCENT (80%)