BE EXPECTED
TO HAVE A MATERIAL ADVERSE EFFECT.
6.5
MAINTENANCE OF PROPERTY; INSURANCE.
(A)
KEEP ALL PROPERTY USEFUL AND NECESSARY IN
THE BUSINESS OF THE LOAN PARTIES, TAKEN AS A WHOLE, IN GOOD WORKING ORDER AND
CONDITION; MAINTAIN WITH FINANCIALLY SOUND AND REPUTABLE INSURANCE COMPANIES
INSURANCE ON, OR SELF INSURE, ALL PROPERTY MATERIAL TO THE BUSINESS OF THE LOAN
PARTIES, TAKEN AS A WHOLE, IN AT LEAST SUCH AMOUNTS AND AGAINST AT LEAST SUCH
RISKS (BUT INCLUDING IN ANY EVENT PUBLIC LIABILITY, PRODUCT LIABILITY AND
BUSINESS INTERRUPTION) AS ARE CONSISTENT WITH THE PAST PRACTICES OF THE LOAN
PARTIES AND OTHERWISE AS ARE USUALLY INSURED AGAINST IN THE SAME GENERAL AREA BY
COMPANIES ENGAGED IN THE SAME OR A SIMILAR BUSINESS; FURNISH TO THE
ADMINISTRATIVE AGENT, UPON WRITTEN REQUEST, INFORMATION IN REASONABLE DETAIL AS
TO THE INSURANCE CARRIED; AND ENSURE THAT AT ALL TIMES THE ADMINISTRATIVE AGENT,
FOR THE BENEFIT OF THE SECURED PARTIES, SHALL BE NAMED AS ADDITIONAL INSURED
WITH RESPECT TO LIABILITY POLICIES, AND THE COLLATERAL AGENT, FOR THE BENEFIT OF
THE SECURED PARTIES, SHALL BE NAMED AS LOSS PAYEE WITH RESPECT TO PROPERTY
INSURANCE FOR THE MORTGAGED PROPERTIES (IF ANY), MAINTAINED BY THE BORROWER AND
ANY SUBSIDIARY GUARANTOR THAT IS A LOAN PARTY; PROVIDED THAT, UNLESS AN EVENT OF
DEFAULT SHALL HAVE OCCURRED AND BE CONTINUING, THE COLLATERAL AGENT SHALL TURN
OVER TO THE BORROWER ANY AMOUNTS RECEIVED BY IT AS LOSS PAYEE UNDER ANY SUCH
PROPERTY INSURANCE MAINTAINED BY SUCH LOAN PARTIES, THE DISPOSITION OF SUCH
AMOUNTS TO BE SUBJECT TO THE PROVISIONS OF SUBSECTION 3.4(D) TO THE EXTENT
APPLICABLE, AND, UNLESS AN EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE
CONTINUING, THE COLLATERAL AGENT AGREES THAT THE BORROWER AND/OR THE APPLICABLE
SUBSIDIARY GUARANTOR SHALL HAVE THE SOLE RIGHT TO ADJUST OR SETTLE ANY CLAIMS
UNDER SUCH INSURANCE.
(B)
WITH RESPECT TO EACH PROPERTY OF SUCH LOAN
PARTIES SUBJECT TO A MORTGAGE (IF ANY) ACQUIRED AFTER THE CLOSING DATE:
(I)
IF ANY PORTION OF ANY SUCH PROPERTY IS
LOCATED IN AN AREA IDENTIFIED AS A SPECIAL FLOOD HAZARD AREA BY THE FEDERAL
EMERGENCY MANAGEMENT AGENCY OR OTHER APPLICABLE AGENCY, SUCH LOAN PARTY SHALL
MAINTAIN OR CAUSE TO BE MAINTAINED, FLOOD INSURANCE TO THE EXTENT REQUIRED BY
LAW.
(II)
THE APPLICABLE LOAN PARTY PROMPTLY SHALL
COMPLY WITH AND CONFORM TO (I) ALL PROVISIONS OF EACH SUCH INSURANCE POLICY, AND
(II) ALL REQUIREMENTS OF THE INSURERS
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APPLICABLE TO SUCH PARTY OR TO SUCH PROPERTY OR TO THE USE, MANNER OF USE,
OCCUPANCY, POSSESSION, OPERATION, MAINTENANCE, ALTERATION OR REPAIR OF SUCH
PROPERTY, EXCEPT FOR SUCH NON-COMPLIANCE OR NON-CONFORMITY AS WOULD NOT,
INDIVIDUALLY OR IN THE AGGREGATE, REASONABLY BE EXPECTED TO HAVE A MATERIAL
ADVERSE EFFECT.
SUCH LOAN PARTY SHALL NOT USE OR PERMIT THE USE OF SUCH
PROPERTY IN ANY MANNER THAT WOULD REASONABLY BE EXPECTED TO RESULT IN THE
CANCELLATION OF ANY SUCH INSURANCE POLICY OR WOULD REASONABLY BE EXPECTED TO
VOID COVERAGE REQUIRED TO BE MAINTAINED WITH RESPECT TO SUCH PROPERTY PURSUANT
TO CLAUSE (A) OF