PROXY SET FORTH ABOVE IS INTENDED TO BE FULLY EFFECTIVE
WITHOUT FURTHER ACTION BY BORROWER AND IS INTENDED TO BE RELIED UPON BY THE
OWNERS, THE BOARD OF MANAGERS AND THE CONDOMINIUM FOR ALL PURPOSES.
NOTWITHSTANDING THE FOREGOING, UPON REQUEST OF LENDER, BORROWER WILL PROMPTLY
EXECUTE AND DELIVER TO LENDER AND ITS SUCCESSORS AND ASSIGNS, A SEPARATE POWER
OF ATTORNEY AND PROXY, IN RECORDABLE FORM AND OTHERWISE IN FORM AND SUBSTANCE
REASONABLY ACCEPTABLE TO LENDER, CONFIRMING THE FOREGOING GRANT TO LENDER.
50
ARTICLE III
INSURANCE AND CASUALTY RESTORATION
Section 3.01
Insurance Coverage. Borrower shall, at its expense,
maintain the following insurance coverages with respect to the each Project
during the term of this Agreement:
(A)
(I)
INSURANCE AGAINST LOSS OR DAMAGE BY FIRE,
CASUALTY AND OTHER HAZARDS INCLUDED IN AN "ALL-RISK" EXTENDED COVERAGE
ENDORSEMENT OR ITS EQUIVALENT, WITH SUCH ENDORSEMENTS AS LENDER MAY FROM TIME TO
TIME REASONABLY REQUIRE AND WHICH ARE CUSTOMARILY REQUIRED BY INSTITUTIONAL
LENDERS OF SIMILAR PROPERTIES SIMILARLY SITUATED IN AN AMOUNT NOT LESS THAN THE
GREATER OF (A) 100% OF THE INSURABLE REPLACEMENT VALUE OF SUCH PROJECT
(EXCLUSIVE OF THE LAND AND FOOTINGS AND FOUNDATIONS) AND (B) SUCH OTHER AMOUNT
AS IS NECESSARY TO PREVENT ANY REDUCTION IN SUCH POLICY BY REASON OF AND TO
PREVENT BORROWER, LENDER OR ANY OTHER INSURED THEREUNDER FROM BEING DEEMED TO BE
A CO-INSURER AND IF A PROJECT CONSTITUTES A LEGAL NON-CONFORMING USE, AN
ORDINANCE OF LAW COVERAGE ENDORSEMENT WHICH CONTAINS "DEMOLITION COST" (IN AN
AMOUNT EQUAL TO 10% OF THE "ALL RISK" EXTENDED INSURANCE COVERAGE), "LOSS DUE TO
OPERATION OF LAW" (IN AN AMOUNT EQUAL TO 100% OF THE "ALL RISK" EXTENDED
INSURANCE COVERAGE) AND "INCREASED COST OF CONSTRUCTION" COVERAGES (IN AN AMOUNT
EQUAL TO 25% OF THE "ALL RISK" INSURANCE EXTENDED COVERAGE), COVERING THE
PROJECT. NOT MORE FREQUENTLY THAN ONCE EVERY THREE (3) YEARS, BORROWER, AT ITS
OPTION, SHALL EITHER (A) HAVE THE APPRAISAL UPDATED OR OBTAIN A NEW APPRAISAL OF
EACH OF THE PROJECTS, (B) HAVE A VALUATION OF EACH OF THE PROJECTS MADE BY OR
FOR ITS INSURANCE CARRIER CONDUCTED BY AN APPRAISER EXPERIENCED IN VALUING
PROPERTIES OF SIMILAR TYPE TO THAT OF EACH OF THE PROJECTS WHICH ARE IN THE
GEOGRAPHICAL AREA IN WHICH THE APPLICABLE PROJECTS ARE LOCATED OR (C) PROVIDE
SUCH OTHER EVIDENCE AS WILL ENABLE LENDER TO DETERMINE, IN ITS REASONABLE
DISCRETION, WHETHER THERE SHALL HAVE BEEN AN INCREASE IN THE INSURABLE VALUE OF
THE PROJECTS AND BORROWER SHALL DELIVER SUCH UPDATED APPRAISAL, NEW APPRAISAL,
INSURANCE VALUATION OR OTHER EVIDENCE REASONABLY ACCEPTABLE TO LENDER, AS THE
CASE MAY BE, AND, IF SUCH UPDATED APPRAISAL, NEW APPRAISAL, INSURANCE VALUATION,
OR OTHER EVIDENCE REASONABLY ACCEPTABLE TO LENDER REFLECTS AN INCREASE IN THE
INSURABLE VALUE OF THE PROJECTS, THE AMOUNT OF INSURANCE REQUIRED HEREUNDER
SHALL BE INCREASED ACCORDINGLY AND BORROWER SHALL DELIVER EVIDENCE REASONABLY
SATISFACTORY TO LENDER THAT SUCH POLICY HAS BEEN SO INCREASED.
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR PERSONAL AND
BODILY INJURY AND/OR DEATH TO ONE OR MORE PERSONS OR