1) DURING THE TIME PERIOD
WHEN TERRORISM INSURANCE GUARANTOR IS OFFERING SECURITIES TO THE PUBLIC, OR 2)
WHEN IN THE BUSINESS JUDGMENT OF TERRORISM INSURANCE GUARANTOR, EXCEEDING AN
LOAN TO VALUE RATIO OF 55% IS NECESSARY GIVEN EXISTING CIRCUMSTANCES OF THE
CREDIT ENVIRONMENT, IF THE TERRORISM INSURANCE GUARANTOR MAINTAINS A NET WORTH
GREATER THAN OR EQUAL TO $600,000,000, BUT IN NO EVENT SHALL THE LTV EXCEED 65%.
(IX)
UPON SIXTY (60) DAYS' WRITTEN NOTICE, SUCH OTHER REASONABLE
INSURANCE AND IN SUCH REASONABLE AMOUNTS AS LENDER FROM TIME TO TIME MAY
REASONABLY REQUEST AGAINST SUCH OTHER INSURABLE HAZARDS WHICH AT THE TIME ARE
COMMONLY INSURED AGAINST FOR PROPERTY SIMILAR TO THE INDIVIDUAL PROPERTY LOCATED
IN OR AROUND THE REGION IN WHICH THE INDIVIDUAL PROPERTY IS LOCATED.
(B)
ALL INSURANCE PROVIDED FOR IN SECTION 6.1(A) SHALL BE OBTAINED
UNDER VALID AND ENFORCEABLE POLICIES (COLLECTIVELY, THE "POLICIES" OR IN THE
SINGULAR, THE "POLICY"), AND SHALL BE SUBJECT TO THE APPROVAL OF LENDER AS TO
INSURANCE COMPANIES, AMOUNTS, DEDUCTIBLES, LOSS PAYEES
81
AND INSUREDS.
THE POLICIES SHALL BE ISSUED BY ONE OR MORE FINANCIALLY SOUND AND
RESPONSIBLE INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN THE STATE OF NEW
YORK (ADMITTED OR NON-ADMITTED BASIS) AND HAVING A CLAIMS PAYING ABILITY RATING
OF "A-" OR BETTER OR ITS EQUIVALENT BY AT LEAST TWO (2) OF THE RATING AGENCIES,
ONE OF WHICH SHALL BE STANDARD & POOR'S RATINGS GROUP (S&P), OR BY A SYNDICATE
OF INSURERS THROUGH WHICH AT LEAST 60% OF THE COVERAGE IS WITH CARRIERS HAVING
SUCH CLAIMS PAYING ABILITY RATINGS (PROVIDED THAT ALL SUCH CARRIERS SHALL HAVE
CLAIMS PAYING ABILITY RATINGS OF NOT LESS THAN "BBB" BY S&P AND THE EQUIVALENT
RATING BY OTHER RATING AGENCIES).
THE POLICIES DESCRIBED IN SECTION 6.1 (OTHER
THAN THOSE STRICTLY LIMITED TO LIABILITY PROTECTION) SHALL DESIGNATE LENDER AS
LOSS PAYEE.
NOT LESS THAN THIRTY (30) DAYS PRIOR TO THE EXPIRATION DATES OF THE
POLICIES THERETOFORE FURNISHED TO LENDER, CERTIFICATES OF INSURANCE EVIDENCING
THE POLICIES ACCOMPANIED BY EVIDENCE SATISFACTORY TO LENDER OF PAYMENT OF THE
PREMIUMS DUE THEREUNDER (THE "INSURANCE PREMIUMS"), SHALL BE DELIVERED BY
BORROWER TO LENDER.
(C)
ANY BLANKET INSURANCE POLICY SHALL SPECIFICALLY ALLOCATE TO THE
INDIVIDUAL PROPERTY THE AMOUNT OF COVERAGE FROM TIME TO TIME REQUIRED HEREUNDER
AND SHALL OTHERWISE PROVIDE THE SAME PROTECTION AS WOULD A SEPARATE POLICY
INSURING ONLY THE PROPERTIES IN COMPLIANCE WITH THE PROVISIONS OF
SECTION 6.1(A).
(D)
ALL POLICIES OF INSURANCE PROVIDED FOR OR CONTEMPLATED BY
SECTION 6.1(A), EXCEPT FOR THE POLICY REFERENCED IN SECTION 6.1(A)(V), SHALL
NAME BORROWER, AS THE INSURED AND LENDER AS THE ADDITIONAL INSURED, AS ITS
INTERESTS MAY APPEAR, AND IN THE CASE OF PROPERTY DAMAGE, BOILER AND MACHINERY,
FLOOD AND EARTHQUAKE INSURANCE, SHALL CONTAIN A SO-CALLED NEW YORK STANDARD
NON-CONTRIBUTING MORTGAGEE CLAUSE IN FAVOR OF LENDER PROVIDING THAT THE LOSS
THEREUNDER SHALL BE PAYABLE TO LENDER.
(E)
ALL POLICIES OF INSURANCE PROVIDED FOR IN SECTION 6.1(A) SHALL
CONTAIN CLAUSES OR ENDORSEMENTS TO THE EFFECT THAT:
(I)
NO ACT OR NEGLIGENCE OF BORROWER, OR ANYONE ACTING