IN THE
CASE OF OTHER PROPERTY AND BUILDINGS SIMILAR TO THE CONDOMINIUM IN NATURE, USE,
LOCATION, HEIGHT AND TYPE OF CONSTRUCTION AS MAY FROM TIME TO TIME BE REASONABLY
REQUIRED BY LENDER.
(B)
BORROWER, SUBJECT TO THE REQUIREMENTS OF THE CONDO
DOCUMENTS AND APPLICABLE LEGAL REQUIREMENTS, SHALL CAUSE THE CONDOMINIUM
ASSOCIATION, AT ITS SOLE COST AND EXPENSE, TO OBTAIN AND MAINTAIN DURING THE
ENTIRE TERM, OR CAUSE TO BE OBTAINED AND MAINTAINED, INSURANCE POLICIES COVERING
THE CONDOMINIUM BUILDING CORE AND SHELL PROVIDING AT LEAST THE FOLLOWING
PROPERTY INSURANCE COVERAGES:
(I)
INSURANCE AGAINST LOSS CUSTOMARILY INCLUDED UNDER STANDARD "ALL
RISK" OR "CAUSES OF LOSS SPECIAL FORM" POLICIES INCLUDING BUT NOT LIMITED TO:
FIRE, HAIL, WINDSTORM/NAMED WINDSTORM, VANDALISM, AND MALICIOUS MISCHIEF, AND
SUCH OTHER INSURABLE HAZARDS WHICH ARE CUSTOMARILY MAINTAINED AND ARE GENERALLY
REQUIRED BY INSTITUTIONAL LENDERS ON LOANS OF SIMILAR AMOUNTS AND SECURED BY
PROPERTIES COMPARABLE TO, AND IN THE GENERAL VICINITY OF, THE CONDOMINIUM.
THE
AMOUNT OF SUCH INSURANCE SHALL BE NOT LESS THAN ONE HUNDRED PERCENT (100%) OF
THE INSURABLE REPLACEMENT COST VALUE OF THE CONDOMINIUM BUILDING CORE AND
SHELL.
EACH SUCH INSURANCE POLICY SHALL EITHER CONTAIN AN AGREED AMOUNT
ENDORSEMENT OR CONFIRMATION THAT COINSURANCE DOES NOT APPLY AND SHALL COVER,
WITHOUT LIMITATION, ALL TENANT IMPROVEMENTS AND BETTERMENTS (EXCEPT TO THE
EXTENT THAT THE TENANT IS REQUIRED TO INSURE THE SAME PURSUANT TO THE APPLICABLE
LEASE OR UNIT PURCHASE AGREEMENT) ON A REPLACEMENT COST BASIS.
LENDER SHALL BE
NAMED MORTGAGEE ON A STANDARD MORTGAGEE ENDORSEMENT AND LENDER LOSS PAYEE.
IF
THE CONDOMINIUM IS NOW OR AT ANY TIME DURING THE LOAN DEEMED TO BE LOCATED IN A
8
SPECIAL HAZARD FLOOD AREA, AND/OR AREA OF HIGH SEISMIC/EARTHQUAKE ACTIVITY THEN
FLOOD AND/OR EARTHQUAKE INSURANCE WILL BE REQUIRED IN AMOUNTS AND WITH
DEDUCTIBLES REASONABLY ACCEPTABLE TO LENDER.
IF THE "ALL RISK" OR "CAUSES OF
LOSS SPECIAL FORM" POLICY EXCLUDES COVERAGE FOR WINDSTORM/NAMED WINDSTORM PERILS
THEN WINDSTORM/NAMED WINDSTORM COVERAGE SHALL BE PROVIDED ON A SEPARATE POLICY
IN AMOUNTS REASONABLY ACCEPTABLE TO LENDER.
WINDSTORM/NAMED WINDSTORM
DEDUCTIBLES SHALL NOT BE GREATER THAN FIVE PERCENT (5%) OF THE TOTAL INSURED
VALUE OF THE CONDOMINIUM BUILDING CORE AND SHELL.
SUCH INSURANCE POLICY SHALL
ALSO INCLUDE COVERAGE FOR:
(A)
LOSS SUFFERED WITH RESPECT TO MATERIALS, EQUIPMENT, HEATING AND
AIR CONDITIONING MACHINERY, MACHINERY, AND SUPPLIES, IN EACH CASE OWNED BY
BORROWER OR REQUIRED TO BE INSURED BY BORROWER, WHETHER ON SITE, IN TRANSIT, OR
STORED OFFSITE AND WITH RESPECT TO TEMPORARY STRUCTURES, HOISTS, SIDEWALKS,
RETAINING WALLS, AND UNDERGROUND PROPERTY IN EACH CASE OWNED BY BORROWER OR
REQUIRED TO BY INSURED BY BORROWER.
(B)
LAW & ORDINANCE COVERAGE INCLUDING COVERAGE FOR VALUE OF THE
UNDAMAGED PORTION, DEMOLITION COST, DEBRIS REMOVAL AND INCREASED COST OF
CONSTRUCTION.
(1)
Demolition Cost means the cost incurred to demolish all or
part of the covered real property, including the cost to clear the site, if any
law or ordinance that exists at the time of loss required such demolition.
Coverage is provided in such amount as is reasonably required by Lender;
(2)
Value