ADDITIONAL INSUREDS; PROVIDED, HOWEVER,
SUBJECT TO OWNER'S OBLIGATIONS UNDER ARTICLE 15, MANAGER SHALL NOT BE NAMED AS
AN ADDITIONAL INSURED ON, AND SHALL NOT HAVE ANY INTEREST IN THE PROCEEDS OF,
ANY PROPERTY INSURANCE.
PURCHASER OR THE HOLDER OF AN AUTHORIZED MORTGAGE SHALL
BE NAMED LOSS PAYEE(S) ON ANY PROPERTY INSURANCE.
(C)
THE INSURANCE HEREIN REQUIRED MAY BE BROUGHT WITHIN THE COVERAGE
OF A SO-CALLED BLANKET POLICY OR POLICIES OF INSURANCE CARRIED AND MAINTAINED BY
OWNER OR MANAGER, PROVIDED THAT SUCH BLANKET POLICIES FULFILL THE REQUIREMENTS
CONTAINED HEREIN.
(D)
IN THE EVENT OWNER OR MANAGER BELIEVES THAT THE THEN FULL
REPLACEMENT COST OF A HOTEL HAS INCREASED OR DECREASED AT
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ANY TIME DURING THE TERM, SUCH PARTY, AT ITS OWN COST, SHALL HAVE THE RIGHT TO
HAVE SUCH FULL REPLACEMENT COST REDETERMINED BY AN INDEPENDENT ACCREDITED
APPRAISER APPROVED BY THE OTHER, WHICH APPROVAL SHALL NOT BE UNREASONABLY
WITHHELD OR DELAYED.
THE PARTY DESIRING TO HAVE THE FULL REPLACEMENT COST SO
REDETERMINED SHALL FORTHWITH, ON RECEIPT OF SUCH DETERMINATION BY SUCH
APPRAISER, GIVE WRITTEN NOTICE THEREOF TO THE OTHER PARTIES.
THE DETERMINATION
OF SUCH APPRAISER SHALL BE FINAL AND BINDING ON THE PARTIES HERETO UNTIL ANY
SUBSEQUENT DETERMINATION UNDER THIS SECTION 13.2(D), AND THE PARTY OBLIGATED TO
MAINTAIN INSURANCE HEREUNDER SHALL FORTHWITH CONFORM THE AMOUNT OF THE INSURANCE
CARRIED TO THE AMOUNT SO DETERMINED BY THE APPRAISER.
SUCH REPLACEMENT VALUE
DETERMINATION WILL NOT BE NECESSARY SO LONG AS A HOTEL IS INSURED THROUGH A
BLANKET REPLACEMENT VALUE POLICY.
(E)
ALL INSURANCE POLICIES AND ENDORSEMENTS REQUIRED PURSUANT TO THIS
ARTICLE 13 SHALL BE FULLY PAID FOR, NONASSESSABLE AND, EXCEPT FOR UMBRELLA,
WORKER'S COMPENSATION, FLOOD AND EARTHQUAKE COVERAGE, SHALL BE ISSUED BY
INSURANCE CARRIERS AUTHORIZED TO DO BUSINESS IN THE STATE WHERE EACH HOTEL IS
LOCATED, HAVING A GENERAL POLICY HOLDER'S RATING OF NO LESS THAN B++ IN BEST'S
LATEST RATING GUIDE.
(F)
ALL SUCH POLICIES SHALL PROVIDE OWNER, MANAGER AND ANY HOLDER OF
AN AUTHORIZED MORTGAGE IF REQUIRED BY THE SAME, THIRTY (30) DAYS' PRIOR WRITTEN
NOTICE OF ANY MATERIAL CHANGE OR CANCELLATION OF SUCH POLICY AND THE PROPERTY
INSURANCE POLICIES SHALL PROVIDE FOR A WAIVER OF SUBROGATION, TO THE EXTENT
AVAILABLE.
13.3
INSURANCE CERTIFICATES.
MANAGER SHALL DELIVER TO OWNER, PURCHASER
AND ANY HOLDER OF AN AUTHORIZED MORTGAGE, CERTIFICATES OF INSURANCE WITH RESPECT
TO ALL POLICIES SO PROCURED BY IT AND, IN THE CASE OF INSURANCE POLICIES ABOUT
TO EXPIRE, SHALL DELIVER CERTIFICATES WITH RESPECT TO THE RENEWAL THEREOF.
IN
THE EVENT MANAGER SHALL FAIL TO EFFECT SUCH INSURANCE AS HEREIN REQUIRED, TO PAY
THE PREMIUMS THEREFOR, OR TO DELIVER, WITHIN FIFTEEN (15) DAYS OF A REQUEST
THEREFOR, SUCH CERTIFICATES, OWNER SHALL HAVE THE RIGHT, BUT NOT THE OBLIGATION,
TO ACQUIRE SUCH INSURANCE AND PAY THE PREMIUMS THEREFOR, WHICH AMOUNTS SHALL BE
PAYABLE TO OWNER, UPON DEMAND, AS AN OPERATING COST, TOGETHER WITH INTEREST
ACCRUED THEREON AT THE INTEREST RATE (WHICH INTEREST SHALL NOT BE AN OPERATING
COST, BUT SHALL BE PAID BY MANAGER) FROM THE DATE SUCH PAYMENT IS