LOSS SUSTAINED BASIS) FOR A PERIOD CONTINUING UNTIL THE
RESTORATION OF THE INDIVIDUAL PROPERTY IS COMPLETED; THE AMOUNT OF SUCH BUSINESS
INTERRUPTION/LOSS OF RENTS INSURANCE SHALL BE DETERMINED PRIOR TO THE CLOSING
DATE AND AT LEAST ONCE EACH YEAR THEREAFTER BASED ON THE GREATEST OF: (X)
BORROWER'S REASONABLE ESTIMATE OF THE GROSS INCOME FROM EACH INDIVIDUAL PROPERTY
AND (Y) THE HIGHEST GROSS INCOME RECEIVED DURING THE TERM OF THE NOTE FOR ANY
FULL CALENDAR YEAR PRIOR TO THE DATE THE AMOUNT OF SUCH INSURANCE IS BEING
DETERMINED, IN EACH CASE FOR THE SUCCEEDING TWENTY-FOUR (24) MONTH PERIOD AND
(D) CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH PROVIDES THAT
AFTER THE PHYSICAL LOSS TO THE IMPROVEMENTS AND THE PERSONAL PROPERTY HAS BEEN
REPAIRED, THE CONTINUED LOSS OF INCOME WILL BE INSURED UNTIL SUCH INCOME EITHER
RETURNS TO THE SAME LEVEL IT WAS AT PRIOR TO THE LOSS, OR THE EXPIRATION OF SIX
(6) MONTHS FROM THE DATE THAT THE APPLICABLE INDIVIDUAL PROPERTY IS REPAIRED OR
REPLACED AND OPERATIONS ARE RESUMED, WHICHEVER FIRST OCCURS, AND NOTWITHSTANDING
THAT THE POLICY MAY EXPIRE PRIOR TO THE END OF SUCH PERIOD; ALL INSURANCE
PROCEEDS PAYABLE TO LENDER PURSUANT TO THIS SECTION 6.1(A)(III) SHALL BE HELD BY
LENDER AND SHALL BE APPLIED TO THE OBLIGATIONS SECURED HEREUNDER FROM TIME TO
TIME DUE AND PAYABLE HEREUNDER AND UNDER THE NOTE AND THIS AGREEMENT; PROVIDED,
HOWEVER, THAT NOTHING HEREIN CONTAINED SHALL BE DEEMED TO RELIEVE BORROWER OF
ITS OBLIGATIONS TO PAY THE OBLIGATIONS SECURED HEREUNDER ON THE RESPECTIVE DATES
OF PAYMENT PROVIDED FOR IN THE NOTE AND THIS AGREEMENT EXCEPT TO THE EXTENT SUCH
AMOUNTS ARE ACTUALLY PAID OUT OF THE PROCEEDS OF SUCH BUSINESS INTERRUPTION/LOSS
OF RENTS INSURANCE.
(IV)
AT ALL TIMES DURING WHICH STRUCTURAL CONSTRUCTION, REPAIRS OR
ALTERATIONS ARE BEING MADE WITH RESPECT TO THE IMPROVEMENTS (A) OWNER'S
CONTINGENT OR PROTECTIVE LIABILITY INSURANCE COVERING CLAIMS NOT COVERED BY OR
UNDER THE TERMS OR PROVISIONS OF THE INSURANCE PROVIDED FOR IN SECTION
6.1(C)(II); AND (B) THE INSURANCE PROVIDED FOR IN SECTION 6.1(A)(I) SHALL BE
WRITTEN IN A SO-CALLED BUILDER'S RISK COMPLETED VALUE OR SIMILAR PROPERTY FORM
(1) ON A NON-REPORTING BASIS, (2) AGAINST ALL RISKS INSURED AGAINST PURSUANT TO
SECTION 6.1(A)(I), (3) SHALL INCLUDE PERMISSION TO OCCUPY EACH INDIVIDUAL
PROPERTY, AND (4) SHALL CONTAIN AN AGREED AMOUNT ENDORSEMENT WAIVING
CO-INSURANCE PROVISIONS;
(V)
WORKERS' COMPENSATION, SUBJECT TO THE STATUTORY LIMITS OF THE
STATE IN WHICH EACH INDIVIDUAL PROPERTY IS LOCATED, AND EMPLOYER'S LIABILITY
INSURANCE WITH A LIMIT OF AT LEAST $1,000,000.00 PER ACCIDENT AND PER DISEASE
PER EMPLOYEE, AND $1,000,000.00 FOR DISEASE AGGREGATE IN RESPECT OF ANY WORK OR
OPERATIONS ON OR ABOUT EACH INDIVIDUAL PROPERTY, OR IN CONNECTION WITH SUCH
INDIVIDUAL PROPERTY OR ITS OPERATION (IF APPLICABLE);
(VI)
COMPREHENSIVE BOILER AND MACHINERY INSURANCE, IF APPLICABLE, IN
AMOUNTS AS SHALL BE REASONABLY REQUIRED BY LENDER ON TERMS CONSISTENT WITH THE
COMMERCIAL PROPERTY INSURANCE POLICY REQUIRED UNDER SECTION 6.1(A)(I);
87
(VII)
IF ANY PORTION OF THE IMPROVEMENTS IS AT ANY TIME LOCATED IN AN
AREA IDENTIFIED BY