NOT BE OBLIGATED TO DO), THE AMOUNT PAID BY LENDER SHALL BE ADDED TO
PRINCIPAL, SHALL BEAR INTEREST AT THE DEFAULT RATE UNTIL PAID IN FULL AND
PAYMENT OF SUCH AMOUNTS SHALL BE SECURED BY THE SECURITY INSTRUMENT AND OTHER
COLLATERAL GIVEN TO SECURE THE LOAN.
Section 9.03
Insurance.
(A)
INSURANCE REQUIRED DURING THE LOAN TERM.
BORROWER, AT BORROWER'S EXPENSE, SHALL OBTAIN AND MAINTAIN DURING THE TERM OF
THE LOAN SUCH INSURANCE COVERAGE (INCLUDING, WITHOUT LIMITATION, TYPE, MINIMUM
COVERAGE AMOUNT, MAXIMUM DEDUCTIBLE AND ACCEPTABLE EXCLUSIONS) FOR BORROWER AND
THE PROPERTY, AS SET FORTH IN SECTIONS 9.03(A)(I) THROUGH (A)(IX) BELOW, AND
WITH RESPECT TO ANY ADDITIONAL INSURANCE COVERAGE, IN ACCORDANCE WITH SECTION
9.03(A)(IX) FOR INSURABLE HAZARDS OR CASUALTIES COMMONLY INSURED AGAINST IN THE
CASE OF PROPERTY SIMILARLY SITUATED AS THE PROPERTY, AS LENDER DEEMS REASONABLY
NECESSARY CONSIDERING, AMONG OTHER THINGS, THE LOCATION AND OCCUPANCY OF THE
PROPERTY AND ALL USES OF THE PROPERTY.
LENDER RESERVES THE RIGHT TO
PERIODICALLY REVIEW THE INSURANCE COVERAGE LENDER HAS REQUIRED (TYPES, MINIMUM
COVERAGE AMOUNTS AND MAXIMUM DEDUCTIBLES) AND TO INCREASE OR OTHERWISE CHANGE
THE REQUIRED COVERAGE SHOULD LENDER DEEM AN INCREASE OR CHANGE TO BE REASONABLY
NECESSARY UNDER THEN EXISTING CIRCUMSTANCES.
WITHOUT LIMITING LENDER'S RIGHTS
HEREUNDER IN ANY RESPECT, IT SHALL BE DEEMED REASONABLE FOR LENDER TO REQUIRE NO
LESS COVERAGE THAN THE COVERAGE IN PLACE ON THE CLOSING DATE.
SUBJECT TO THE
FOREGOING, LENDER SHALL REQUIRE THE FOLLOWING INSURANCE COVERAGE TO BE EFFECTIVE
DURING THE TERM OF THE LOAN, COVERAGE AMOUNTS AND DEDUCTIBLES TO BE ACCEPTABLE
TO LENDER:
46
(I)
PROPERTY INSURANCE.
CASUALTY INSURANCE
MUST BE MAINTAINED FOR THE IMPROVEMENTS AND ALL PERSONAL PROPERTY INSURING
AGAINST ANY PERIL NOW OR HEREAFTER INCLUDED WITHIN THE CLASSIFICATION "ALL RISKS
OF PHYSICAL LOSS" AND IN AN AMOUNT AT ALL TIMES SUFFICIENT TO PREVENT BORROWER
OR LENDER FROM BECOMING A CO-INSURER WITHIN THE TERMS OF THE APPLICABLE POLICIES
BUT IN ANY EVENT AT ALL TIMES EQUAL TO THE FULL REPLACEMENT COST (AS REASONABLY
DETERMINED AND ADJUSTED FROM TIME TO TIME BY LENDER) OF THE IMPROVEMENTS AND
PERSONAL PROPERTY (WITHOUT TAKING INTO ACCOUNT ANY DEPRECIATION AND EXCLUSIVE OF
EXCAVATIONS, FOOTINGS AND FOUNDATIONS, LANDSCAPING AND PAVING), WITHOUT ANY
EXCLUSIONS FOR WINDSTORMS.
IN ALL CASES WHERE (A) THE OUTSTANDING PRINCIPAL
BALANCE ON THE NOTE EXCEEDS $5 MILLION, OR (B) ANY PART OF THE IMPROVEMENTS
CONSTITUTES A LEGAL NON-CONFORMING USE UNDER THE REQUIREMENTS OF LAW, SUCH
INSURANCE MUST INCLUDE "ORDINANCE OF LAW COVERAGE," WITH "TIME ELEMENT," "LOSS
TO THE UNDAMAGED PORTION OF THE BUILDING," "DEMOLITION COST" AND "INCREASED COST
OF CONSTRUCTION" ENDORSEMENTS, IN THE AMOUNT OF COVERAGE REQUESTED BY LENDER.
THE POLICY MUST NAME LENDER AS AN INSURED MORTGAGEE UNDER A STANDARD MORTGAGEE
CLAUSE.
THE DEDUCTIBLE SHALL NOT EXCEED $25,000.00.
(II)
INSURANCE AGAINST ACTS OF TERRORISM.
THE
INSURANCE COVERAGE PROVIDED UNDER SECTION 9.03(A) IN EFFECT AS OF THE CLOSING
DATE AND DURING THE LOAN TERM MUST ALSO INSURE AGAINST LOSS OR DAMAGE RESULTING
FROM ACTS OF TERRORISM OR COMPARABLE COVERAGE ACCEPTABLE TO LENDER IN ITS
DISCRETION WITH A DEDUCTIBLE THAT DOES