LIABILITY FROM
OPERATION OF BUILDING LAWS, DEMOLITION COSTS AND INCREASED COST OF CONSTRUCTION
ENDORSEMENTS, IN EACH CASE (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 TEN THOUSAND AND NO/100 DOLLARS ($10,000) FOR ALL SUCH
INSURANCE COVERAGE; 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 FEDERALLY DESIGNATED
"SPECIAL FLOOD HAZARD AREA", FLOOD HAZARD INSURANCE IN AN AMOUNT EQUAL TO THE
LESSER OF (1) THE OUTSTANDING PRINCIPAL BALANCE OF THE NOTE OR (2) THE MAXIMUM
AMOUNT OF SUCH INSURANCE AVAILABLE UNDER THE NATIONAL FLOOD INSURANCE ACT OF
1968, THE FLOOD DISASTER PROTECTION ACT OF 1973 OR THE NATIONAL FLOOD INSURANCE
REFORM ACT OF 1994, AS EACH MAY BE AMENDED OR SUCH GREATER AMOUNT AS LENDER
SHALL REQUIRE; 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, 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)
COMMERCIAL GENERAL LIABILITY INSURANCE
AGAINST CLAIMS FOR PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE
OCCURRING UPON, IN OR ABOUT THE PROPERTY, SUCH INSURANCE (A) TO BE ON THE
SO-CALLED "OCCURRENCE" FORM WITH A COMBINED LIMIT, INCLUDING UMBRELLA COVERAGE,
OF NOT LESS THAN FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00); (B) TO
CONTINUE AT NOT LESS THAN THE AFORESAID LIMIT UNTIL REQUIRED TO BE CHANGED BY
LENDER IN WRITING BY REASON OF CHANGED ECONOMIC CONDITIONS MAKING SUCH
PROTECTION INADEQUATE; AND (C) TO COVER AT LEAST THE FOLLOWING HAZARDS:
(1) PREMISES AND OPERATIONS; (2) PRODUCTS AND COMPLETED OPERATIONS ON AN "IF
ANY" BASIS; (3) INDEPENDENT CONTRACTORS; (4) BLANKET CONTRACTUAL LIABILITY FOR
ALL LEGAL CONTRACTS; AND (5) CONTRACTUAL LIABILITY COVERING THE INDEMNITIES
CONTAINED IN ARTICLE 9 OF THE MORTGAGE TO THE EXTENT THE SAME IS AVAILABLE;
(III)
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) COVERING RENTAL LOSSES OR
BUSINESS INTERRUPTION, AS MAY BE APPLICABLE, FOR A PERIOD OF AT LEAST TWELVE
(12) MONTHS AFTER THE DATE OF THE CASUALTY [AND 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
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