VI
INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
SECTION 6.1
INSURANCE.
(A)
BORROWER SHALL OBTAIN AND MAINTAIN, OR CAUSE TO BE MAINTAINED,
POLICIES FOR BORROWER, EACH PROPERTY GUARANTOR AND EACH INDIVIDUAL PROPERTY
(INDIVIDUALLY OR COLLECTIVELY, AS THE CONTEXT REQUIRES, AN "INSURED ASSET")
PROVIDING AT LEAST THE FOLLOWING COVERAGES:
(I)
COMPREHENSIVE ALL RISK INSURANCE ON THE IMPROVEMENTS AND THE
PERSONAL PROPERTY, IN EACH CASE (A) IN AN AMOUNT EQUAL TO 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 $50,000; AND (D) PROVIDING COVERAGE FOR CONTINGENT LIABILITY FROM OPERATION
OF BUILDING LAWS, DEMOLITION COSTS AND INCREASED COST OF CONSTRUCTION
ENDORSEMENTS TOGETHER WITH AN "ORDINANCE OR LAW COVERAGE" OR "ENFORCEMENT"
ENDORSEMENT IF ANY OF THE IMPROVEMENTS OR THE USE OF EACH INSURED ASSET SHALL AT
ANY TIME CONSTITUTE LEGAL NON-CONFORMING STRUCTURES OR USES;
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT EACH INSURED ASSET, SUCH INSURANCE (A) TO BE ON THE SO-CALLED "OCCURRENCE"
FORM WITH A GENERAL AGGREGATE LIMIT OF NOT LESS THAN $2,000,000 AND A PER
OCCURRENCE LIMIT OF NOT LESS THAN $1,000,000; (B) TO CONTINUE AT NOT LESS THAN
THE AFORESAID LIMIT; 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
WRITTEN AND ORAL CONTRACTS; AND (5) CONTRACTUAL LIABILITY COVERING THE
INDEMNITIES CONTAINED IN ARTICLE 10 OF THE SECURITY INSTRUMENTS TO THE EXTENT
THE SAME IS AVAILABLE;
(III)
BUSINESS INTERRUPTION/LOSS OF RENTS INSURANCE (A) WITH LOSS
PAYABLE TO LENDER; (B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE
INSURANCE PROVIDED FOR IN ‎SECTION 6.1(A)(I); (C) IN AN AMOUNT EQUAL TO 100% OF
THE PROJECTED GROSS INCOME FROM EACH INSURED ASSET (ON AN ACTUAL LOSS SUSTAINED
BASIS) FOR A PERIOD CONTINUING UNTIL THE RESTORATION OF THE INSURED ASSET IS
COMPLETED; THE AMOUNT OF SUCH BUSINESS INTERRUPTION/LOSS OF RENTS INSURANCE
SHALL BE DETERMINED PRIOR TO THE CLOSING DATE AND AT LEAST ONCE EACH YEAR
THEREAFTER BASED ON BORROWER'S, PROPERTY GUARANTOR'S OR MEZZANINE ASSET OWNER'S,
AS THE CASE MAY BE, REASONABLE ESTIMATE OF THE GROSS INCOME FROM EACH INSURED
ASSET FOR THE FULL CALENDAR YEAR PRIOR TO THE DATE THE AMOUNT OF SUCH INSURANCE
IS BEING DETERMINED, IN EACH CASE FOR THE SUCCEEDING EIGHTEEN (18) MONTH PERIOD
AND (D) CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH PROVIDES
THAT AFTER THE PHYSICAL LOSS TO THE
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IMPROVEMENTS AND THE PERSONAL PROPERTY HAS BEEN REPAIRED, THE CONTINUED LOSS OF
INCOME WILL BE INSURED UNTIL SUCH INCOME EITHER RETURNS TO THE SAME LEVEL IT WAS
AT PRIOR TO THE LOSS, OR THE EXPIRATION OF SIX (6) MONTHS FROM THE DATE