COST (NOT ALLOWING
REDUCTION IN INSURANCE PROCEEDS FOR DEPRECIATION) OF THE PROPERTY, AND NOT LESS
THAN THE AMOUNT NECESSARY TO AVOID THE OPERATION OF ANY CO-INSURANCE PROVISIONS
WITH RESPECT TO THE PROPERTY; (B) A BUSINESS INTERRUPTION OR RENTAL LOSS
INSURANCE POLICY PROVIDING
COVERAGE
FOR AT LEAST
TWELVE MONTHS
(OTHER THAN
FOR MANUFACTURED HOUSING COMMUNITIES) AND FOR EIGHTEEN MONTHS OF COVERAGE IF THE
PROPERTY IS A SPECIAL PURPOSE PROPERTY OR IF THE MORTGAGE LOAN IS IN EXCESS OF
$25 MILLION; (C) A FLOOD INSURANCE POLICY (IF ANY PORTION OF THE PROPERTY IS
LOCATED IN AN AREA IDENTIFIED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS
HAVING SPECIAL FLOOD HAZARDS); AND (D) A COMPREHENSIVE GENERAL LIABILITY
INSURANCE POLICY IN AMOUNTS AS ARE GENERALLY REQUIRED BY COMMERCIAL MORTGAGE
LENDERS, AND IN ANY EVENT NOT LESS THAN $1 MILLION PER OCCURRENCE. SUCH
INSURANCE POLICY CONTAINS A STANDARD MORTGAGEE CLAUSE THAT NAMES THE HOLDER OF
THE MORTGAGE , ITS SUCCESSORS AND ASSIGNS AS MORTGAGEE AS AN ADDITIONAL INSURED
IN THE CASE OF LIABILITY INSURANCE POLICIES OR AS A LOSS PAYEE IN THE CASE OF
PROPERTY INSURANCE POLICIES. SUCH INSURANCE POLICY IS NOT TERMINABLE (NOR MAY
THE AMOUNT OF COVERAGE PROVIDED THEREUNDER BE REDUCED) WITHOUT PRIOR WRITTEN
NOTICE TO THE HOLDER OF THE MORTGAGE, AND NO SUCH NOTICE HAS BEEN RECEIVED,
INCLUDING ANY NOTICE OF NONPAYMENT OF PREMIUMS, THAT HAS NOT BEEN CURED. EACH
MORTGAGE OBLIGATES THE RELATED MORTGAGOR TO MAINTAIN ALL SUCH INSURANCE AND,
UPON SUCH MORTGAGOR'S FAILURE TO DO SO, AUTHORIZES THE HOLDER OF THE MORTGAGE TO
PURCHASE AND MAINTAIN SUCH INSURANCE AT THE MORTGAGOR'S COST AND EXPENSE AND TO
SEEK REIMBURSEMENT THEREFOR FROM SUCH MORTGAGOR. EACH MORTGAGE PROVIDES THAT
CASUALTY INSURANCE PROCEEDS WILL BE APPLIED EITHER TO THE RESTORATION OR REPAIR
OF THE RELATED PROPERTY OR TO THE REDUCTION OR DEFEASANCE OF THE PRINCIPAL
AMOUNT OF THE MEZZANINE LOAN.
VII-5
(29)
TAXES AND ASSESSMENTS. THERE ARE NO DELINQUENT OR UNPAID TAXES OR
ASSESSMENTS (INCLUDING ASSESSMENTS PAYABLE IN FUTURE INSTALLMENTS), OR OTHER
OUTSTANDING CHARGES AFFECTING ANY PROPERTY WHICH ARE OR MAY BECOME A LIEN OF
PRIORITY EQUAL TO OR HIGHER THAN THE LIEN OF THE RELATED MORTGAGE. FOR PURPOSES
OF THIS REPRESENTATION AND WARRANTY, REAL PROPERTY TAXES AND ASSESSMENTS SHALL
NOT BE CONSIDERED UNPAID UNTIL THE DATE ON WHICH INTEREST AND/OR PENALTIES WOULD
BE FIRST PAYABLE THEREON.
(30)
MORTGAGOR BANKRUPTCY. NO MORTGAGOR, PLEDGOR, NON-RECOURSE CARVE-OUT
GUARANTOR OR TENANT PHYSICALLY OCCUPYING 25% OR MORE (BY SQUARE FEET) OF THE NET
RENTABLE AREA OF A PROPERTY IS A DEBTOR IN ANY STATE OR FEDERAL BANKRUPTCY OR
INSOLVENCY PROCEEDING.
(31)
LEASEHOLD ESTATE. EACH PROPERTY CONSISTS OF THE RELATED MORTGAGOR'S
FEE SIMPLE ESTATE IN REAL ESTATE OR, IF THE RELATED MEZZANINE LOAN IS SECURED IN
WHOLE OR IN PART BY THE INTEREST OF A MORTGAGOR AS A LESSEE UNDER A GROUND LEASE
OF A PROPERTY (A "GROUND LEASE"), BY THE RELATED MORTGAGOR'S INTEREST IN THE
GROUND LEASE BUT NOT BY THE RELATED FEE INTEREST IN SUCH PROPERTY (THE "FEE
INTEREST"). WITH RESPECT TO ANY MEZZANINE LOAN SECURED BY