AGENT NOR ANY OTHER PARTY SHALL BE A CONTRIBUTOR- INSURER (EXCEPT
DEDUCTIBLES) UNDER SAID POLICIES AND THAT NO MATERIAL MODIFICATION, REDUCTION,
CANCELLATION OR TERMINATION IN AMOUNT OF, OR MATERIAL CHANGE (OTHER THAN AN
INCREASE) IN, COVERAGE OF ANY OF THE POLICIES SHALL BE EFFECTIVE UNTIL AT LEAST
THIRTY (30) DAYS AFTER RECEIPT BY EACH NAMED INSURED, ADDITIONAL INSURED AND
LOSS PAYEE OF WRITTEN NOTICE THEREOF OR TEN (10) DAYS AFTER RECEIPT OF SUCH
NOTICE WITH RESPECT TO NONPAYMENT OF PREMIUM; (V) SHALL PERMIT THE
ADMINISTRATIVE AGENT TO PAY THE PREMIUMS AND CONTINUE ANY INSURANCE UPON FAILURE
OF THE BORROWER TO PAY PREMIUMS WHEN DUE, UPON THE INSOLVENCY OF ANY OF THE
BORROWER OR THROUGH FORECLOSURE OR OTHER TRANSFER OF TITLE TO THE MORTGAGED
PROPERTY (IT BEING UNDERSTOOD THAT THE BORROWER'S RIGHTS TO COVERAGE UNDER SUCH
POLICIES MAY NOT BE ASSIGNABLE WITHOUT THE CONSENT OF THE INSURER); AND (VI)
SHALL PROVIDE THAT ANY PROCEEDS SHALL BE PAYABLE TO THE ADMINISTRATIVE AGENT AND
BORROWER AS THEIR INTERESTS MAY APPEAR AND THAT THE INSURANCE SHALL NOT BE
IMPAIRED OR INVALIDATED BY VIRTUE OF (A) ANY ACT, FAILURE TO ACT, NEGLIGENCE OF,
OR VIOLATION OF DECLARATIONS, WARRANTIES OR CONDITIONS CONTAINED IN SUCH POLICY
BY THE BORROWER, THE ADMINISTRATIVE AGENT OR ANY OTHER NAMED INSURED, ADDITIONAL
INSURED OR LOSS PAYEE, EXCEPT FOR THE WILLFUL MISCONDUCT OF THE ADMINISTRATIVE
AGENT KNOWINGLY IN VIOLATION OF THE CONDITIONS OF SUCH POLICY, (B) THE
OCCUPATION, USE, OPERATION OR MAINTENANCE OF THE MORTGAGED PROPERTY FOR PURPOSES
MORE HAZARDOUS THAN PERMITTED BY THE TERMS OF THE POLICY, (C) ANY FORECLOSURE OR
OTHER PROCEEDING OR NOTICE OF SALE RELATING TO THE MORTGAGED PROPERTY, OR (D)
ANY CHANGE IN THE POSSESSION OF THE MORTGAGED PROPERTY WITHOUT A CHANGE IN THE
IDENTITY OF THE HOLDER OF ACTUAL TITLE TO THE MORTGAGED PROPERTY (PROVIDED THAT
WITH RESPECT TO ITEMS (C) AND (D), ANY NOTICE REQUIREMENTS OF THE APPLICABLE
POLICIES ARE SATISFIED).
(N)
PREMIUMS; CERTIFICATES; RENEWALS.
(I)
THE BORROWER SHALL PAY OR CAUSE TO BE
PAID THE PREMIUMS FOR SUCH POLICIES (THE "INSURANCE PREMIUMS") AS THE SAME
BECOME DUE AND PAYABLE AND SHALL FURNISH TO THE ADMINISTRATIVE AGENT THE
RECEIPTS FOR THE PAYMENT OF THE INSURANCE PREMIUMS OR OTHER EVIDENCE OF SUCH
PAYMENT REASONABLY SATISFACTORY TO THE ADMINISTRATIVE AGENT (PROVIDED, HOWEVER,
THAT BORROWER IS NOT REQUIRED TO FURNISH SUCH EVIDENCE OF PAYMENT TO THE
ADMINISTRATIVE AGENT IF SUCH INSURANCE PREMIUMS ARE TO BE PAID BY THE
ADMINISTRATIVE AGENT
41
pursuant to the terms of this Agreement).
Within thirty (30) days after request
by the Administrative Agent, the Borrower shall obtain such increases in the
amounts of coverage required hereunder as may be reasonably requested in writing
by the Administrative Agent (except with respect to the Terrorism Insurance and
seismic insurance required hereunder), taking into consideration changes in
liability laws, changes in prudent customs and practices, and the like. In the
event the Borrower satisfies the requirements under this Section 7.3(1)(N)
through the use of a Policy covering properties in addition to the Mortgaged
Property, then