BASIS (OR THE UNPAID BALANCE
OF THE INDEBTEDNESS SECURED HEREBY IF REPLACEMENT COST COVERAGE IS NOT AVAILABLE
FOR THE TYPE OF BUILDING INSURED). IN ADDITION, AT LENDER'S DISCRETION,
REGARDLESS OF WHETHER A PARTICULAR PROJECT IS LOCATED IN A SPECIAL FLOOD HAZARD
AREA, BORROWER SHALL MAINTAIN FLOOD INSURANCE IN AMOUNTS SATISFACTORY TO LENDER,
AND IN ALL CASES, HAVING A MAXIMUM PERMISSIBLE DEDUCTIBLE OF $100,000.
(VII)
WORKER'S COMPENSATION INSURANCE OR OTHER SIMILAR INSURANCE WHICH MAY BE
REQUIRED BY GOVERNMENTAL AUTHORITIES OR LEGAL REQUIREMENTS.
(VIII)
INSURANCE AGAINST LOSS RESULTING FROM MOLD, SPORES OR FUNGUS ON OR
ABOUT THE PROJECTS.
(IX)
DURING ANY PERIOD OF THE TERM OF THE LOAN THAT TRIA IS IN EFFECT, IF
"ACTS OF TERRORISM" OR OTHER SIMILAR ACTS OR EVENTS ARE HEREAFTER EXCLUDED FROM
THE INSURANCE POLICIES MAINTAINED PURSUANT TO SUBSECTIONS (I), (II) AND
(III) ABOVE, BORROWER
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SHALL OBTAIN AN ENDORSEMENT TO SUCH POLICY, OR A SEPARATE POLICY INSURING
AGAINST TERRORISM AND "FIRE FOLLOWING", EACH IN AN AMOUNT EQUAL TO ONE HUNDRED
PERCENT (100%) OF THE "FULL REPLACEMENT COST" FOR CERTIFIED ACTS OF TERRORISM AS
DEFINED BY TRIA AND IN AN AMOUNT SATISFACTORY TO LENDER FOR NON-CERTIFIED ACTS
OF TERRORISM 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, BUT THE AMOUNT SHALL IN NO EVENT BE
LESS THAN THE TOTAL OUTSTANDING PRINCIPAL BALANCE OF THE LOAN. THE ENDORSEMENT
OR POLICY SHALL BE IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO LENDER AND
SHALL MEET RATING AGENCY CRITERIA FOR SECURITIZED LOANS. DURING
ANY PERIOD OF
THE TERM OF THE LOAN THAT TRIA IS NOT IN EFFECT, BORROWER SHALL MAINTAIN THE
INSURANCE COVERAGE DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE BUT THE TOTAL
ANNUAL PREMIUM PAYABLE BY BORROWER FOR SUCH TERRORISM COVERAGE SHALL NOT EXCEED
AN AMOUNT GREATER THAN TWO HUNDRED PERCENT (200%) OF THE TOTAL ANNUAL PREMIUM
BEING PAID BY BORROWER AS OF THE CLOSING DATE FOR SUCH TERRORISM COVERAGE.
(X)
SUCH OTHER INSURANCE AS MAY FROM TIME TO TIME BE REQUIRED BY LENDER AND
WHICH IS THEN CUSTOMARILY REQUIRED BY INSTITUTIONAL LENDERS FOR SIMILAR
PROPERTIES SIMILARLY SITUATED, AGAINST OTHER INSURABLE HAZARDS, INCLUDING, BUT
NOT LIMITED TO, MALICIOUS MISCHIEF, VANDALISM, SINKHOLE AND MINE SUBSIDENCE,
WINDSTORM AND/OR EARTHQUAKE, DUE REGARD TO BE GIVEN TO THE SIZE AND TYPE OF THE
RELATED PROJECT, IMPROVEMENTS, FIXTURES AND EQUIPMENT AND THEIR LOCATION,
CONSTRUCTION AND USE. ADDITIONALLY, BORROWER SHALL CARRY SUCH INSURANCE COVERAGE
AS LENDER MAY FROM TIME TO TIME REQUIRE IF THE FAILURE TO CARRY SUCH INSURANCE
MAY RESULT IN A DOWNGRADE, QUALIFICATION OR WITHDRAWAL OF ANY CLASS OF
SECURITIES ISSUED IN CONNECTION WITH A SECONDARY MARKET TRANSACTION OR, IF THE
LOAN IS NOT YET PART OF A SECONDARY MARKET TRANSACTION, WOULD RESULT IN AN
INCREASE IN THE SUBORDINATION LEVELS OF ANY CLASS OF SECURITIES ANTICIPATED TO
BE ISSUED IN CONNECTION WITH A PROPOSED SECONDARY MARKET TRANSACTION.
(B)
BORROWER SHALL CAUSE ANY MANAGER OF THE PROJECTS TO MAINTAIN
FIDELITY INSURANCE IN AN AMOUNT EQUAL TO THE