THE FOLLOWING COVERAGES:
(I)
COMPREHENSIVE ALL RISK INSURANCE ("SPECIAL FORM") INCLUDING, BUT NOT
LIMITED TO, LOSS CAUSED BY ANY TYPE OF WINDSTORM OR HAIL ON THE IMPROVEMENTS AND
THE PERSONAL PROPERTY, (A) IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF
THE "FULL REPLACEMENT COST," WHICH FOR PURPOSES OF THIS AGREEMENT SHALL MEAN
ACTUAL REPLACEMENT VALUE (EXCLUSIVE OF COSTS OF EXCAVATIONS, FOUNDATIONS,
UNDERGROUND UTILITIES AND FOOTINGS) WITH A WAIVER OF DEPRECIATION;
(B) CONTAINING AN AGREED AMOUNT ENDORSEMENT WITH RESPECT TO THE IMPROVEMENTS AND
PERSONAL PROPERTY WAIVING ALL CO-INSURANCE PROVISIONS; (C) PROVIDING FOR NO
DEDUCTIBLE IN EXCESS OF ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000) FOR
ALL SUCH INSURANCE COVERAGE EXCLUDING WINDSTORM AND EARTHQUAKE AND (D)
CONTAINING AN "ORDINANCE OR LAW COVERAGE" OR "ENFORCEMENT" ENDORSEMENT IF ANY OF
THE IMPROVEMENTS OR THE USE OF THE PROPERTY SHALL AT ANY TIME CONSTITUTE LEGAL
NON-CONFORMING STRUCTURES OR USES.
IN ADDITION, BORROWER SHALL OBTAIN:
(Y) IF
ANY PORTION OF THE IMPROVEMENTS IS CURRENTLY OR AT ANY TIME IN THE FUTURE
LOCATED IN A "SPECIAL FLOOD HAZARD AREA," AS DESIGNATED BY THE FEDERAL EMERGENCY
MANAGEMENT AGENCY OR SUCH OTHER APPLICABLE FEDERAL AGENCY, FLOOD HAZARD
INSURANCE IN AN AMOUNT EQUAL TO THE MAXIMUM AMOUNT AVAILABLE UNDER THE NATIONAL
FLOOD INSURANCE PROGRAM AND IN ADDITION TO THE MAXIMUM AVAILABLE UNDER THE
NATIONAL FLOOD PROGRAM, ANY EXCESS LIMITS AS DETERMINED BY LENDER IN ITS SOLE
AND ABSOLUTE
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DISCRETION; AND (Z) EARTHQUAKE INSURANCE IN AMOUNTS AND IN FORM AND SUBSTANCE
SATISFACTORY TO LENDER IN THE EVENT THE PROPERTY IS LOCATED IN AN AREA WITH A
HIGH DEGREE OF SEISMIC ACTIVITY, WITH A PROBABLE MAXIMUM LOSS EXCEEDING TWENTY
PERCENT (20%), PROVIDED THAT THE INSURANCE PURSUANT TO CLAUSES (Y) AND (Z)
HEREOF SHALL BE ON TERMS CONSISTENT WITH THE COMPREHENSIVE ALL RISK INSURANCE
POLICY REQUIRED UNDER THIS SUBSECTION (I).
(II)
BUSINESS INCOME INSURANCE (A) WITH LOSS PAYABLE TO LENDER;
(B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE INSURANCE PROVIDED FOR IN
SUBSECTION (I) ABOVE; (C) IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF
THE PROJECTED GROSS REVENUES FROM THE OPERATION OF THE PROPERTY (AS REDUCED TO
REFLECT EXPENSES NOT INCURRED DURING A PERIOD OF RESTORATION) FOR A PERIOD OF AT
LEAST EIGHTEEN (18) MONTHS AFTER THE DATE OF THE CASUALTY; AND (D) CONTAINING AN
EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH PROVIDES THAT AFTER THE PHYSICAL
LOSS TO THE IMPROVEMENTS AND 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 TWELVE (12) MONTHS FROM
THE DATE THAT THE 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.
THE AMOUNT OF SUCH BUSINESS INCOME INSURANCE SHALL BE
DETERMINED PRIOR TO THE CLOSING DATE AND AT LEAST ONCE EACH YEAR THEREAFTER
BASED ON BORROWER'S REASONABLE ESTIMATE OF THE GROSS INCOME FROM THE PROPERTY
FOR THE SUCCEEDING