THEN BORROWER SHALL BE REQUIRED TO, OR BORROWER SHALL CAUSE MORTGAGE
BORROWER TO, CARRY TERRORISM INSURANCE THROUGHOUT THE TERM OF THE LOAN, AS
REQUIRED BY THE PRECEDING SENTENCE, BUT IN SUCH EVENT NEITHER BORROWER NOR
MORTGAGE BORROWER SHALL BE REQUIRED TO SPEND ON TERRORISM INSURANCE COVERAGE
MORE THAN TWO TIMES THE AMOUNT OF THE INSURANCE PREMIUM THAT IS PAYABLE AT SUCH
TIME IN RESPECT OF THE ALL-RISK INSURANCE, EXCLUDING THE COST OF EARTHQUAKE,
FLOOD AND TERRORISM COVERAGE (AND IN SUCH EVENT SUCH TERRORISM COVERAGE SHALL BE
FROM SUCH INSURERS, AND WITH SUCH COVERAGE, AS SHALL BE ACCEPTABLE TO LENDER IN
ITS REASONABLE DISCRETION) (THE "TERRORISM INSURANCE CAP") AND IF THE COST OF
THE TERRORISM INSURANCE REQUIRED AMOUNT EXCEEDS THE TERRORISM INSURANCE CAP,
BORROWER SHALL, OR SHALL CAUSE
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MORTGAGE BORROWER TO, PURCHASE THE MAXIMUM AMOUNT OF TERRORISM INSURANCE
OBTAINABLE FOR A PREMIUM EQUAL IN AMOUNT TO THE TERRORISM INSURANCE CAP; AND
(XI)
SUCH OTHER INSURANCE AND IN SUCH AMOUNTS AS LENDER FROM TIME TO
TIME MAY REASONABLY REQUEST AGAINST SUCH OTHER INSURABLE HAZARDS WHICH AT THE
TIME ARE COMMONLY INSURED AGAINST FOR PROPERTY SIMILAR TO THE PROPERTIES LOCATED
IN THE REGION IN WHICH THE PROPERTIES ARE LOCATED.
(B)
ALL INSURANCE PROVIDED FOR IN SECTION 6.1(A) HEREOF SHALL BE
OBTAINED UNDER VALID AND ENFORCEABLE POLICIES (COLLECTIVELY, THE "POLICIES" OR
IN THE SINGULAR, THE "POLICY"), IN SUCH FORMS AND, FROM TIME TO TIME AFTER THE
DATE HEREOF, SUBJECT TO THE TERMS OF SECTION 6.1(A) HEREOF, IN SUCH AMOUNTS AS
MAY BE REASONABLY SATISFACTORY TO LENDER. THE POLICIES SHALL BE ISSUED BY
FINANCIALLY SOUND AND RESPONSIBLE INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS
IN THE STATE IN WHICH THE INDIVIDUAL PROPERTY IS LOCATED AND HAVING A CLAIMS
PAYING ABILITY/ RATING OF "A" OR BETTER (AND THE EQUIVALENT THEREOF) BY AT LEAST
TWO OF THE RATING AGENCIES RATING THE SECURITIES (ONE OF WHICH SHALL BE S&P, IF
S&P IS RATING THE SECURITIES, AND ONE OF WHICH SHALL BE MOODY'S, IF MOODY'S IS
RATING THE SECURITIES), OR IF ONLY ONE RATING AGENCY IS RATING THE SECURITIES,
THEN ONLY BY SUCH RATING AGENCY; PROVIDED, HOWEVER, THAT IF THE INSURANCE
COVERAGE IS PROVIDED BY A SYNDICATE OF INSURERS, THEN (I) IF SUCH SYNDICATE
CONSISTS OF FIVE OR MORE MEMBERS, (A) AT LEAST 40% OF THE INSURANCE COVERAGE
(AND, SUBJECT TO THE REMAINING PROVISIONS OF THIS SECTION 6.1(B), 100% OF THE
FIRST LAYER OF SUCH COVERAGE) SHALL BE PROVIDED BY INSURANCE COMPANIES HAVING A
CLAIMS PAYING ABILITY RATING OF "A" OR BETTER BY S&P AND 20% SHALL BE PROVIDED
BY INSURANCE COMPANIES HAVING A CLAIMS PAYING ABILITY RATING OF "A-" OR BETTER
BY S&P, AND (B) THE REMAINING 40% OF THE COVERAGE SHALL BE PROVIDED BY INSURANCE
COMPANIES HAVING A CLAIMS PAYING ABILITY RATING OF "BBB" OR BETTER BY S&P. NOT
LESS THAN TEN DAYS PRIOR TO THE EXPIRATION DATES OF THE POLICIES THERETOFORE
FURNISHED TO LENDER, BINDERS OR CERTIFICATES OF INSURANCE EVIDENCING THE
POLICIES ACCOMPANIED BY EVIDENCE REASONABLY SATISFACTORY TO LENDER OF PAYMENT OF
THE INSURANCE PREMIUMS