7.5
INSURANCE.
(A)
FLEETWOOD SHALL MAINTAIN, AND SHALL CAUSE
EACH OF ITS SUBSIDIARIES TO MAINTAIN, WITH FINANCIALLY SOUND AND REPUTABLE
INSURERS HAVING A RATING OF AT LEAST A+ OR BETTER BY BEST RATING GUIDE,
INSURANCE AGAINST LOSS OR DAMAGE BY FIRE WITH EXTENDED COVERAGE; THEFT,
BURGLARY, PILFERAGE AND LOSS IN TRANSIT; PUBLIC LIABILITY AND THIRD PARTY
PROPERTY DAMAGE; LARCENY, EMBEZZLEMENT OR OTHER CRIMINAL LIABILITY; BUSINESS
INTERRUPTION; PUBLIC LIABILITY AND THIRD PARTY PROPERTY DAMAGE; AND SUCH OTHER
HAZARDS OR OF SUCH OTHER TYPES AS IS CUSTOMARY FOR PERSONS ENGAGED
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IN THE SAME OR SIMILAR BUSINESS, IN AMOUNTS CUSTOMARY FOR PERSONS ENGAGED IN THE
SAME OR SIMILAR BUSINESS, AND UNDER POLICIES ACCEPTABLE TO THE AGENT AND THE
MAJORITY LENDERS.
WITHOUT LIMITING THE FOREGOING, IN THE EVENT THAT ANY
IMPROVED REAL ESTATE COVERED BY THE MORTGAGES IS DETERMINED TO BE LOCATED WITHIN
AN AREA THAT HAS BEEN IDENTIFIED BY THE DIRECTOR OF THE FEDERAL EMERGENCY
MANAGEMENT AGENCY AS A SPECIAL FLOOD HAZARD AREA ("SFHA"), THE APPLICABLE LOAN
PARTY SHALL PURCHASE AND MAINTAIN FLOOD INSURANCE ON THE IMPROVED REAL ESTATE
AND ANY EQUIPMENT AND INVENTORY LOCATED ON SUCH REAL ESTATE TO THE EXTENT
REQUIRED BY APPLICABLE LAW.
THE AMOUNT OF SAID FLOOD INSURANCE WILL BE
REASONABLY DETERMINED BY THE AGENT, AND SHALL, AT A MINIMUM, COMPLY WITH
APPLICABLE FEDERAL REGULATIONS AS REQUIRED BY THE FLOOD DISASTER PROTECTION ACT
OF 1973, AS AMENDED.
EXCEPT AS OTHERWISE APPROVED BY THE AGENT, THE LOAN
PARTIES SHALL ALSO MAINTAIN FLOOD INSURANCE FOR ALL INVENTORY AND EQUIPMENT
WHICH IS, AT ANY TIME, LOCATED IN A SFHA.
(B)
FLEETWOOD SHALL CAUSE THE AGENT, FOR THE
RATABLE BENEFIT OF THE AGENT AND THE LENDERS, TO BE NAMED AS SECURED PARTY OR
MORTGAGEE AND SOLE LOSS PAYEE OR ADDITIONAL INSURED, IN A MANNER ACCEPTABLE TO
THE AGENT.
EACH POLICY OF INSURANCE SHALL CONTAIN A CLAUSE OR ENDORSEMENT
REQUIRING THE INSURER TO GIVE NOT LESS THAN THIRTY (30) DAYS' PRIOR WRITTEN
NOTICE TO THE AGENT IN THE EVENT OF CANCELLATION OF THE POLICY FOR ANY REASON
WHATSOEVER AND A CLAUSE OR ENDORSEMENT STATING THAT THE INTEREST OF THE AGENT
SHALL NOT BE IMPAIRED OR INVALIDATED BY ANY ACT OR NEGLECT OF FLEETWOOD OR ANY
OF ITS SUBSIDIARIES OR THE OWNER OF ANY REAL ESTATE FOR PURPOSES MORE HAZARDOUS
THAN ARE PERMITTED BY SUCH POLICY.
ALL PREMIUMS FOR SUCH INSURANCE SHALL BE
PAID BY FLEETWOOD AND ITS SUBSIDIARIES WHEN DUE, AND CERTIFICATES OF INSURANCE
AND, IF REQUESTED BY THE AGENT OR ANY LENDER, PHOTOCOPIES OF THE POLICIES, SHALL
BE DELIVERED TO THE AGENT, IN EACH CASE IN SUFFICIENT QUANTITY FOR DISTRIBUTION
BY THE AGENT TO EACH OF THE LENDERS.
IF FLEETWOOD AND ITS SUBSIDIARIES FAIL TO
PROCURE SUCH INSURANCE OR TO PAY THE PREMIUMS THEREFOR WHEN DUE, THE AGENT MAY,
AND AT THE DIRECTION OF THE MAJORITY LENDERS SHALL, DO SO FROM THE PROCEEDS OF
REVOLVING LOANS.
7.6
INSURANCE AND CONDEMNATION PROCEEDS.
THE
BORROWERS SHALL PROMPTLY NOTIFY THE AGENT AND THE LENDERS OF ANY MATERIAL LOSS,
DAMAGE, OR DESTRUCTION TO THE COLLATERAL,