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 OUTSTANDING PRINCIPAL BALANCE OF THE LOAN; (B)
CONTAINING AN AGREED AMOUNT ENDORSEMENT WITH RESPECT TO THE IMPROVEMENTS AND
PERSONAL PROPERTY WAIVING ALL CO-INSURANCE PROVISIONS; (C) PERMITTING NO
DEDUCTIBLE IN EXCESS OF $50,000.00; AND (D) CONTAINING AN "ORDINANCE OR LAW
COVERAGE" OR "ENFORCEMENT" ENDORSEMENT IF ANY OF THE IMPROVEMENTS OR THE USE OF
THE PROJECT 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 LOAN 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 PROJECT IS LOCATED IN
AN AREA WITH A HIGH DEGREE OF SEISMIC ACTIVITY.
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT THE PROJECT, SUCH INSURANCE (A) TO BE ON THE SO-CALLED "OCCURRENCE" FORM
WITH A COMBINED LIMIT, OF NOT LESS THAN $2,000,000.00, (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
58
LIABILITY FOR ALL LEGAL CONTRACTS; AND (5) CONTRACTUAL LIABILITY COVERING THE
INDEMNITIES CONTAINED IN LOAN AGREEMENT;
(III)
INTENTIONALLY OMITTED;
(IV)
THE INSURANCE PROVIDED FOR IN SUBSECTION (I) ABOVE WRITTEN IN A SO
CALLED BUILDER'S RISK COMPLETED VALUE FORM (1) ON A NON-REPORTING BASIS, (2)
AGAINST ALL RISKS INSURED AGAINST PURSUANT TO SUBSECTION (I) ABOVE, (3)
INCLUDING ALL BUILDING MATERIAL STORED AT THE DESIGNATED SITE (INCLUDING ON-SITE
AND OFF-SITE STORAGE AT SPECIFIC LOCATIONS), (4) INCLUDING ALL SOFT COSTS, (5)
INCLUDING PERMISSION TO OCCUPY THE IMPROVEMENTS AND (5) WITH AN AGREED AMOUNT
ENDORSEMENT WAIVING COINSURANCE PROVISIONS.
(V)
WORKERS' COMPENSATION, SUBJECT TO THE STATUTORY LIMITS OF THE
STATE, AND EMPLOYER'S LIABILITY INSURANCE WITH A LIMIT OF AT LEAST $1,000,000.00
PER ACCIDENT AND PER DISEASE PER EMPLOYEE, AND $1,000,000.00 PER ACCIDENT AND
PER DISEASE IN THE AGGREGATE IN RESPECT OF ANY WORK OR OPERATIONS ON OR ABOUT
THE PROJECT, OR IN CONNECTION WITH THE PROJECT OR ITS OPERATION (IF APPLICABLE);
(VI)
COMPREHENSIVE BOILER AND MACHINERY INSURANCE, IF APPLICABLE, IN
AMOUNTS AS SHALL BE REASONABLY REQUIRED BY LENDER ON TERMS