OR VERIFICATIONS CONCERNING THE
PROPERTY, BORROWER, ANY BORROWER PARTY OR GUARANTOR AS LENDER MAY REASONABLY
REQUEST FROM TIME TO TIME. LENDER MAY RETAIN AN INVESTIGATOR TO RESEARCH THE
PUBLIC RECORDS AND REPUTATION OF ANY PRINCIPAL OF BORROWER OR GUARANTOR.
SECTION 7.8
INSURANCE REQUIREMENTS.
SECTION 7.8.1
INSURANCE.
BORROWER, AT ITS SOLE COST AND
EXPENSE, SHALL INSURE AND KEEP THE PROPERTY INSURED AGAINST SUCH PERILS AND
HAZARDS, AND IN SUCH AMOUNTS AND WITH SUCH LIMITS, AS LENDER MAY FROM TIME TO
TIME REASONABLY REQUIRE AT ALL TIMES DURING THE TERM OF THE LOAN, INCLUDING, BUT
NOT LIMITED TO THE INSURANCE COVERAGE SET FORTH BELOW.
UNLESS OTHERWISE
EXPRESSLY DEFINED HEREIN, CAPITALIZED TERMS SET FORTH IN THIS SECTION ARE TERMS
OF ART, AS USED IN AND UNDERSTOOD IN THE INSURANCE INDUSTRY OR ARE DEFINED TERMS
ELSEWHERE IN THIS AGREEMENT.
(A)
CASUALTY/ "ALL RISK".
BORROWER SHALL
MAINTAIN OR OBTAIN INSURANCE AGAINST LOSS CUSTOMARILY INCLUDED UNDER STANDARD
"ALL RISK" INSURANCE POLICIES INCLUDING FLOOD, EARTHQUAKE AND SUCH OTHER
INSURABLE HAZARDS AS, UNDER GOOD INSURANCE PRACTICES ARE INSURED AGAINST FOR
OTHER PROPERTY AND BUILDINGS SIMILAR TO THE PROPERTY IN NATURE, USE, LOCATION,
HEIGHT, AND TYPE OF CONSTRUCTION (THE "ALL RISK INSURANCE").
THE AMOUNT OF SUCH
INSURANCE SHALL BE NOT LESS THAN ONE HUNDRED PERCENT (100%) OF THE REPLACEMENT
COST OF THE IMPROVEMENTS OF THE PROPERTY.
SUCH INSURANCE POLICY SHALL CONTAIN
AN AGREED AMOUNT ENDORSEMENT. FLOOD AND EARTHQUAKE SUBLIMITS SHALL BE AT LEAST
25% OF THE REPLACEMENT COST OF THE PROPERTY, BUT NOT LESS THAN $5,000,000 EACH
PER OCCURRENCE AND IN THE ANNUAL AGGREGATE, UNLESS THE RISK IS LOCATED IN A
MERCALLI ZONE VII OR GREATER OR A FLOOD ZONE "A", AS DEFINED BY THE NATIONAL
INSURANCE FLOOD PLAN.
IF THE PROPERTY IS LOCATED IN AN EARTHQUAKE MERCALLI ZONE
VII OR GREATER, BORROWER SHALL MAINTAIN EARTHQUAKE LIMITS PROVIDING FOR 75% OF
THE REPLACEMENT COST, WITH A DEDUCTIBLE NOT GREATER THAN 5% OF THE REPLACEMENT
COST.
IF THE PROPERTY IS LOCATED IN A FLOOD ZONE "A", BORROWER SHALL MAINTAIN
FLOOD LIMITS PROVIDING FOR 20% OF THE REPLACEMENT COST, WITH A DEDUCTIBLE NOT
GREATER THAN 3% OF REPLACEMENT COSTS.
SUCH INSURANCE SHALL COVER INCREASED COST
OF LAW OR ORDINANCE INSURANCE, COSTS OF DEMOLITION AND INCREASED COST OF
CONSTRUCTION, WITH A SUBLIMIT OF NOT LESS THAN
25
$1,000,000. If coverage is provided under a blanket policy, Lender shall be
named as sole Loss Payee and Mortgagee for the Property.
(B)
INTENTIONALLY DELETED.
(C)
COMMERCIAL GENERAL LIABILITY. COMMERCIAL
GENERAL LIABILITY INSURANCE, INCLUDING, BUT NOT LIMITED TO, COVERAGE FOR OWNED
(IF ANY), HIRED AND NON-OWNED AUTO LIABILITY, AND UMBRELLA LIABILITY COVERAGE
FOR PERSONAL INJURY, BODILY INJURY, DEATH, ACCIDENT AND PROPERTY DAMAGE,
PROVIDING IN COMBINATION NO LESS THAN $10,000,000 PER OCCURRENCE AND IN THE
ANNUAL AGGREGATE, PER LOCATION.
THE POLICIES DESCRIBED IN THIS PARAGRAPH SHALL
COVER, WITHOUT LIMITATION: ELEVATORS, ESCALATORS, INDEPENDENT CONTRACTORS,
CONTRACTUAL LIABILITY AND PRODUCTS AND COMPLETED OPERATIONS LIABILITY COVERAGE.
(D)
WORKER'S COMPENSATION. WORKER'S COMPENSATION
INSURANCE COVERING BORROWER AND ITS EMPLOYEES AT THE PROPERTY TO THE EXTENT
REQUIRED, AND IN THE AMOUNTS REQUIRED