THE BUILDING AND SOFT COSTS COVERAGE), AND BOILER AND
MACHINERY COVERAGE (IF SEPARATE POLICY, THAT POLICY MUST INCLUDE LOSS OF RENTS
OR BUSINESS INTERRUPTION COVERAGE), AS SPECIFIED BY ADMINISTRATIVE AGENT.
THE
POLICY SHALL BE IN AN AMOUNT NOT LESS THAN THE FULL INSURABLE VALUE ON A
REPLACEMENT COST BASIS OF THE INSURED IMPROVEMENTS AND PERSONAL PROPERTY RELATED
THERETO (WITHOUT DEDUCTION FOR DEPRECIATION).
DURING ANY CONSTRUCTION PERIOD,
SUCH POLICY SHALL BE WRITTEN IN THE SO-CALLED "BUILDER'S RISK COMPLETED VALUE
NON-REPORTING FORM" WITH NO COINSURANCE REQUIREMENT AND SHALL CONTAIN A
PROVISION GRANTING THE INSURED PERMISSION TO OCCUPY PRIOR TO COMPLETION.
SUCH
POLICY SHALL NOT CONTAIN AN EXCLUSION FOR TERRORIST LOSSES.
HOWEVER, IF SUCH AN
EXCLUSION EXISTS IN THE ALL-RISK POLICY, A SEPARATE TERRORISM POLICY COVERING
CERTIFIED ACTS OF TERRORISM MUST BE EVIDENCED TO ADMINISTRATIVE AGENT IN AN
AMOUNT EQUAL TO THE FULL REPLACEMENT COST OF THE IMPROVEMENTS, OR THE
OUTSTANDING PRINCIPAL AMOUNT OF THE LOANS, WHICHEVER IS LESS.
THIS POLICY MUST
ALSO LIST ADMINISTRATIVE AGENT AS MORTGAGEE AND LOSS PAYEE.
NOTWITHSTANDING THE
FOREGOING, BORROWER SHALL NOT BE REQUIRED TO PROVIDE INSURANCE COVERING
CERTIFIED ACTS OF TERRORISM IN THE LIMITS PROVIDED ABOVE IF THE PREMIUM FOR SUCH
INSURANCE SHALL EXCEED THE TERRORISM PREMIUM LIMIT, BUT SHALL BE REQUIRED TO
PROVIDE SUCH INSURANCE TO THE EXTENT THAT THE SAME IS AVAILABLE AT THE TERRORISM
PREMIUM LIMIT.
46
AS USED HEREIN, THE TERM "TERRORISM PREMIUM LIMIT" SHALL MEAN A PREMIUM AT A
RATE OF $0.10 PER $100 APPLIED TO THE LESSER OF (I) THE OUTSTANDING PRINCIPAL
BALANCE OF THE LOANS AND (II) THE FULL REPLACEMENT COST OF THE IMPROVEMENTS AND
PERSONAL PROPERTY RELATED THERETO AND THE REQUIRED BUSINESS INCOME VALUE.
BORROWER MAY USE ITS CAPTIVE INSURANCE COMPANY (DIRECTLY OR INDIRECTLY OWNED BY
GUARANTOR) TO INSURE LOSSES, DAMAGES, COSTS, EXPENSES, CLAIMS AND LIABILITIES
RELATED TO ACTS OF TERRORISM, BUT ONLY IF, AND FOR SO LONG AS, (A) SUCH CAPTIVE
INSURANCE COMPANY IS LICENSED AS A CAPTIVE INSURANCE COMPANY, (B) COVERAGE FOR
ANY LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM MAY BE SUBSIDIZED BY THE
UNITED STATES GOVERNMENT ESTABLISHED BY THE TERRORISM RISK INSURANCE PROGRAM
REAUTHORIZATION ACT ("TRIPRA") OF 2015 AND AS AMENDED, (C) SUCH CAPTIVE
INSURANCE COMPANY SHALL PURCHASE REINSURANCE FOR THE REMAINING BALANCE OF
COVERED TERRORISM LOSSES WITH INSURERS MEETING THE RATING REQUIREMENTS PROVIDED
IN SECTION 3.1(2), (D) SUCH CAPTIVE INSURANCE COMPANY SHALL BE RESPONSIBLE FOR
ANY DEDUCTIBLE BELOW THE TRIPRA THRESHOLD, (E) ADMINISTRATIVE AGENT HAS BEEN
PROVIDED WITH THE FINANCIAL STATEMENTS OF SUCH CAPTIVE INSURANCE COMPANY, WHICH
FINANCIAL STATEMENTS MUST DEMONSTRATE THAT SUCH CAPTIVE INSURANCE COMPANY SHALL
HAVE THE FINANCIAL WHEREWITHAL TO MEET ITS OBLIGATIONS UNDER SUCH INSURANCE
POLICY, AS DETERMINED BY THE LICENSING AUTHORITY OF THE STATE WHERE IT IS
DOMICILED, AND (F) SUCH CAPTIVE INSURANCE COMPANY MUST MEET ANY APPLICABLE
REQUIREMENTS UNDER TRIPRA;
(E)
WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE IN
ACCORDANCE WITH THE APPLICABLE LAWS OF THE STATE IN WHICH THE WORK IS TO BE
PERFORMED OR OF THE STATE IN WHICH BORROWER IS OBLIGATED TO PAY COMPENSATION TO
EMPLOYEES