AND
THE ACTION THEN BEING TAKEN TO REMEDY IT.
6.3.4
OTHER REPORTS. BORROWER SHALL FURNISH TO LENDER, WITHIN TEN
(10) BUSINESS DAYS AFTER REQUEST, SUCH FURTHER DETAILED INFORMATION WITH RESPECT
TO THE OPERATION OF THE PROPERTY AND THE FINANCIAL AFFAIRS OF BORROWER OR
MANAGER AS MAY BE REASONABLY REQUESTED BY LENDER OR ANY APPLICABLE RATING
AGENCY.
6.3.5
ANNUAL BUDGET. BORROWER SHALL PREPARE AND SUBMIT (OR SHALL CAUSE
MANAGER TO PREPARE AND SUBMIT) TO LENDER WITHIN THIRTY (30) DAYS AFTER A CASH
TRAP PERIOD COMMENCES AND BY DECEMBER 15TH OF EACH YEAR THEREAFTER DURING THE
TERM UNTIL SUCH CASH TRAP PERIOD HAS ENDED, FOR APPROVAL BY LENDER, WHICH
APPROVAL SHALL NOT BE UNREASONABLY WITHHELD OR DELAYED, A PROPOSED PRO FORMA
BUDGET FOR THE PROPERTY FOR THE SUCCEEDING CALENDAR YEAR (THE "ANNUAL BUDGET",
AND EACH ANNUAL BUDGET APPROVED BY LENDER IS REFERRED TO HEREIN AS THE "APPROVED
ANNUAL BUDGET")), AND, PROMPTLY AFTER PREPARATION THEREOF, ANY REVISIONS TO SUCH
ANNUAL BUDGET. THE ANNUAL BUDGET SHALL CONSIST OF (I) AN OPERATING EXPENSE
BUDGET SHOWING, ON A MONTH-BY-MONTH BASIS, IN REASONABLE DETAIL, EACH LINE ITEM
OF THE BORROWER'S ANTICIPATED OPERATING INCOME AND OPERATING EXPENSES (ON A CASH
AND ACCRUAL BASIS), INCLUDING AMOUNTS REQUIRED TO ESTABLISH, MAINTAIN AND/OR
INCREASE ANY MONTHLY PAYMENTS REQUIRED HEREUNDER (AND ONCE SUCH ANNUAL BUDGET
HAS BEEN APPROVED BY LENDER, SUCH OPERATING EXPENSE BUDGET SHALL BE REFERRED TO
HEREIN AS THE "APPROVED OPERATING BUDGET"), AND (II) A CAPITAL EXPENSE BUDGET
SHOWING, ON A MONTH-BY-MONTH BASIS, IN REASONABLE DETAIL, EACH LINE ITEM OF
ANTICIPATED CAPITAL EXPENSES (AND ONCE SUCH ANNUAL BUDGET HAS BEEN APPROVED BY
LENDER, SUCH CAPITAL EXPENSE BUDGET SHALL BE REFERRED TO HEREIN AS THE "APPROVED
CAPITAL BUDGET"). UNTIL SUCH TIME THAT ANY ANNUAL BUDGET HAS BEEN APPROVED BY
LENDER, THE PRIOR APPROVED ANNUAL BUDGET SHALL APPLY FOR ALL PURPOSES HEREUNDER
(WITH SUCH ADJUSTMENTS AS REASONABLY DETERMINED BY LENDER (INCLUDING INCREASES
FOR ANY NON-DISCRETIONARY EXPENSES)).
7.
INSURANCE; CASUALTY; AND CONDEMNATION
7.1
INSURANCE.
7.1.1
COVERAGE. BORROWER, AT ITS SOLE COST, FOR THE MUTUAL BENEFIT OF
BORROWER AND LENDER, SHALL OBTAIN AND MAINTAIN DURING THE TERM THE FOLLOWING
POLICIES OF INSURANCE:
(A)
PROPERTY INSURANCE INSURING AGAINST LOSS OR DAMAGE CUSTOMARILY
INCLUDED UNDER SO CALLED "ALL RISK" OR "SPECIAL FORM" POLICIES INCLUDING FIRE,
LIGHTNING, VANDALISM, AND MALICIOUS MISCHIEF, BOILER AND MACHINERY AND, IF
REQUIRED BY LENDER IN ACCORDANCE WITH SUBSECTIONS (B) OR (I) BELOW, FLOOD AND/OR
EARTHQUAKE COVERAGE, AND SUBJECT TO SUBSECTION (J) BELOW, COVERAGE FOR DAMAGE OR
DESTRUCTION CAUSED BY THE ACTS OF "TERRORISTS" (OR SUCH POLICIES SHALL HAVE NO
EXCLUSION FROM COVERAGE WITH RESPECT THERETO) AND SUCH OTHER INSURABLE HAZARDS
AS, UNDER GOOD INSURANCE PRACTICES, FROM TIME TO TIME ARE INSURED AGAINST FOR
OTHER PROPERTY AND BUILDINGS SIMILAR TO THE PREMISES IN NATURE, USE, LOCATION,
HEIGHT, AND TYPE OF CONSTRUCTION. SUCH INSURANCE POLICY SHALL ALSO INSURE FOR
ORDINANCE OF LAW COVERAGE, COSTS OF DEMOLITION AND INCREASED COST OF
CONSTRUCTION IN AMOUNTS SATISFACTORY TO LENDER. EACH SUCH INSURANCE POLICY SHALL
(I) BE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF THE