AND AS MORTGAGEE AND LOSS PAYEE ON ALL ALL-RISK PROPERTY, FLOOD
INSURANCE AND RENT LOSS OR BUSINESS INTERRUPTION INSURANCE, (II) BE ENDORSED TO
SHOW THAT BORROWER'S INSURANCE SHALL BE PRIMARY AND ALL INSURANCE CARRIED BY
ADMINISTRATIVE AGENT OR ANY LENDER IS STRICTLY EXCESS AND SECONDARY AND SHALL
NOT CONTRIBUTE WITH BORROWER'S INSURANCE, (III) PROVIDE THAT ADMINISTRATIVE
AGENT IS TO RECEIVE THIRTY (30) DAYS (EXCEPT TEN (10) DAYS FOR NON-PAYMENT OF
PREMIUM) WRITTEN NOTICE PRIOR TO CANCELLATION, (IV) BE EVIDENCED BY A
CERTIFICATE OF INSURANCE TO BE PROVIDED TO ADMINISTRATIVE AGENT ALONG WITH A
COPY OF THE POLICY FOR THE ALL-RISK PROPERTY COVERAGE WITHIN FIVE (5) BUSINESS
DAYS AFTER RECEIPT AND APPROVAL BY BORROWER, (V) INCLUDE EITHER POLICY OR BINDER
NUMBERS ON THE CURRENT EDITION OF THE APPROPRIATE ACORD FORM OR ITS EQUIVALENT,
AND (VI) BE IN FORM AND AMOUNTS AS REQUIRED HEREIN OR OTHERWISE REASONABLY
ACCEPTABLE TO ADMINISTRATIVE AGENT.
NOT LESS THAN FIVE (5) DAYS PRIOR TO THE
EXPIRATION DATES OF THE POLICIES THERETOFORE FURNISHED TO ADMINISTRATIVE AGENT
PURSUANT TO SECTION 3.1(1), BORROWER SHALL DELIVER CERTIFICATES OF INSURANCE OR
BINDERS FOR RENEWAL POLICIES ACCOMPANIED BY EVIDENCE SATISFACTORY TO
ADMINISTRATIVE AGENT OF PAYMENT OF THE PREMIUMS DUE AS REQUIRED THEREUNDER.
(4)
ALL POLICIES PROVIDED FOR IN SECTION 3.1(1) SHALL CONTAIN
CLAUSES OR ENDORSEMENTS TO THE EFFECT THAT:
(I)
WITH RESPECT TO PROPERTY, FLOOD, BOILER AND MACHINERY,
BUILDER'S RISK AND BUSINESS INTERRUPTION POLICIES, NO ACT OR NEGLIGENCE OF
BORROWER, OR ANYONE ACTING FOR BORROWER, OR FAILURE TO COMPLY WITH THE
PROVISIONS OF ANY POLICY WHICH MIGHT OTHERWISE RESULT IN A FORFEITURE OF THE
INSURANCE OR ANY PART THEREOF, SHALL IN ANY WAY AFFECT THE VALIDITY OR
ENFORCEABILITY OF THE INSURANCE INSOFAR AS ADMINISTRATIVE AGENT IS CONCERNED;
(II)
EACH POLICY SHALL NOT BE CANCELLED WITHOUT AT LEAST 30 DAYS'
(EXCEPT 10 DAYS' FOR NON-PAYMENT OF PREMIUM) WRITTEN NOTICE TO ADMINISTRATIVE
AGENT; AND
48­
(III)
ADMINISTRATIVE AGENT SHALL NOT BE LIABLE FOR ANY INSURANCE
PREMIUMS THEREON OR SUBJECT TO ANY ASSESSMENTS THEREUNDER.
(5)
ANY INSURANCE REQUIRED TO BE MAINTAINED PURSUANT TO THIS
SECTION MAY BE EVIDENCED BY BLANKET INSURANCE POLICIES COVERING THE PROJECT AND
OTHER PROPERTIES OR ASSETS OF BORROWER OR ITS AFFILIATES, PROVIDED THAT ANY SUCH
POLICY SHALL IN ALL OTHER RESPECTS MATERIALLY COMPLY WITH THE REQUIREMENTS OF
THIS SECTION.
(6)
IF AT ANY TIME ADMINISTRATIVE AGENT IS NOT IN RECEIPT OF
WRITTEN EVIDENCE THAT ALL INSURANCE REQUIRED HEREUNDER IS IN FULL FORCE AND
EFFECT, ADMINISTRATIVE AGENT SHALL HAVE THE RIGHT, FOLLOWING AT LEAST FIVE (5)
DAYS WRITTEN NOTICE TO BORROWER (OR UPON WRITTEN NOTICE TO BORROWER, IF ANY
INSURANCE REQUIRED TO MAINTAINED HEREUNDER SHALL NOT BE IN FULL FORCE AND EFFECT
OR SHALL BE DUE TO EXPIRE WITHIN ONE (1) BUSINESS DAY), TO TAKE SUCH ACTION AS
ADMINISTRATIVE AGENT DEEMS NECESSARY TO PROTECT ITS AND THE LENDERS' INTEREST IN
THE PROJECT, INCLUDING, WITHOUT LIMITATION, THE OBTAINING OF SUCH INSURANCE
COVERAGE AS ADMINISTRATIVE AGENT IN ITS REASONABLE DISCRETION DEEMS APPROPRIATE
(BUT NOT MORE THAN THE INSURANCE REQUIRED TO BE MAINTAINED BY BORROWER