PROVIDING SUCH POLICIES, THEN AT LEAST 60%
OF THE ENTIRE AMOUNT OF THE APPLICABLE INSURANCE COVERAGE PROVIDED UNDER SUCH
POLICIES SHALL BE ISSUED BY INSURERS HAVING MINIMUM CLAIMS PAYING ABILITY
RATINGS OF "A" OR BETTER BY S&P (AND THE EQUIVALENT BY ANY OTHER RATING AGENCY)
AND NO INSURER PROVIDING ANY PORTION OF SUCH COVERAGE SHALL HAVE A MINIMUM
CLAIMS PAYING ABILITY RATING LOWER THAN "BBB" BY S&P (OR LOWER THAN THE
EQUIVALENT BY ANY OTHER RATING AGENCY); (II) NAME LENDER AND ITS SUCCESSORS
AND/OR ASSIGNS AS THEIR INTEREST MAY APPEAR AS THE MORTGAGEE (IN THE CASE OF
PROPERTY INSURANCE), LOSS PAYEE (IN THE CASE OF BUSINESS INTERRUPTION/LOSS OF
RENTS COVERAGE) AND AN ADDITIONAL INSURED (IN THE CASE OF LIABILITY INSURANCE);
(III) CONTAIN (IN THE CASE OF PROPERTY INSURANCE) A NON-CONTRIBUTORY STANDARD
MORTGAGEE CLAUSE AND A LENDER'S LOSS PAYABLE ENDORSEMENT, OR THEIR EQUIVALENTS,
NAMING LENDER AS THE PERSON TO WHICH ALL PAYMENTS MADE BY SUCH INSURANCE COMPANY
SHALL BE PAID; (IV) CONTAIN A WAIVER OF SUBROGATION AGAINST LENDER; (V) BE
ASSIGNED AND THE ORIGINALS THEREOF DELIVERED TO LENDER; OR, IN LIEU OF
DELIVERING ORIGINALS OF THE POLICIES, BORROWER MAY, ON AN ANNUAL BASIS, DELIVER
ACORD EVIDENCES OF COVERAGES, OR THE EQUIVALENT, AS ADEQUATE PROOF OF COVERAGE;
PROVIDED, HOWEVER, IF AT, ANY TIME, LENDER REQUESTS CARRIER CERTIFICATION OF
POLICIES, BORROWER SHALL DELIVER SUCH CERTIFICATION WITHIN TEN (10) DAYS OF
LENDER'S REQUEST THEREFOR; (VI) CONTAIN SUCH PROVISIONS AS LENDER DEEMS
REASONABLY NECESSARY OR DESIRABLE TO PROTECT ITS INTEREST, INCLUDING
(A) ENDORSEMENTS PROVIDING THAT NEITHER BORROWER, LENDER NOR ANY OTHER PARTY
SHALL BE A CO-INSURER UNDER THE POLICIES, (B) THAT LENDER SHALL RECEIVE AT LEAST
THIRTY (30) DAYS' PRIOR WRITTEN NOTICE OF ANY MODIFICATION, REDUCTION OR
CANCELLATION OF ANY OF THE POLICIES, (C) AN AGREEMENT WHEREBY THE INSURER WAIVES
ANY RIGHT TO CLAIM ANY PREMIUMS AND COMMISSIONS AGAINST LENDER, PROVIDED THAT
THE POLICY NEED NOT WAIVE THE REQUIREMENT THAT
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THE PREMIUM BE PAID IN ORDER FOR A CLAIM TO BE PAID TO THE INSURED AND
(D) PROVIDING THAT LENDER IS PERMITTED TO MAKE PAYMENTS TO EFFECT THE
CONTINUATION OF SUCH POLICY UPON NOTICE OF CANCELLATION DUE TO NON-PAYMENT OF
PREMIUMS; (VII) IN THE EVENT ANY INSURANCE POLICY (EXCEPT FOR GENERAL PUBLIC AND
OTHER LIABILITY AND WORKERS COMPENSATION INSURANCE) SHALL CONTAIN BREACH OF
WARRANTY PROVISIONS, SUCH POLICY SHALL PROVIDE THAT WITH RESPECT TO THE INTEREST
OF LENDER, SUCH INSURANCE POLICY SHALL NOT BE INVALIDATED BY AND SHALL INSURE
LENDER REGARDLESS OF (A) ANY ACT, FAILURE TO ACT OR NEGLIGENCE OF OR VIOLATION
OF WARRANTIES, DECLARATIONS OR CONDITIONS CONTAINED IN SUCH POLICY BY ANY NAMED
INSURED, (B) THE OCCUPANCY OR USE OF THE PREMISES FOR PURPOSES MORE HAZARDOUS
THAN PERMITTED BY THE TERMS THEREOF, OR (C) ANY FORECLOSURE OR OTHER ACTION OR
PROCEEDING TAKEN BY LENDER PURSUANT TO ANY PROVISION OF THE LOAN DOCUMENTS; AND
(VIII) BE SATISFACTORY IN FORM AND SUBSTANCE TO LENDER AND APPROVED BY LENDER AS
TO AMOUNTS, FORM, RISK COVERAGE, DEDUCTIBLES, LOSS PAYEES AND INSUREDS. BORROWER
SHALL PAY THE PREMIUMS