REQUIRED REPAIRS
Section 6.1
Insurance.
(A)
BORROWER SHALL OBTAIN AND MAINTAIN, OR CAUSE TO BE MAINTAINED,
POLICIES FOR BORROWER AND THE PROPERTIES PROVIDING AT LEAST THE FOLLOWING
COVERAGES:
(I)
COMPREHENSIVE ALL RISK INSURANCE INCLUDING A $100,000,000 PER
OCCURRENCE SUB-LIMIT, WITH NO AGGREGATE FOR THE PERIL OF WIND, (NAMED STORMS),
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 (I) $100,000 OR (II) IN THE EVENT THAT
THE INSURANCE DEDUCTIBLE LETTER OF CREDIT IS IN FULL FORCE AND EFFECT, $500,000
; 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 INDIVIDUAL PROPERTY SHALL AT ANY TIME CONSTITUTE
LEGAL NON-CONFORMING STRUCTURES OR USES.
THE FULL REPLACEMENT COST SHALL BE
REDETERMINED FROM TIME TO TIME (BUT NOT MORE FREQUENTLY THAN ONCE IN ANY
TWENTY-FOUR (24) CALENDAR MONTHS) AT THE REQUEST OF LENDER BY AN APPRAISER OR
CONTRACTOR DESIGNATED AND PAID BY BORROWER AND APPROVED BY LENDER, OR BY AN
ENGINEER OR APPRAISER IN THE REGULAR EMPLOY OF THE INSURER.
AFTER THE FIRST
APPRAISAL, ADDITIONAL APPRAISALS MAY BE BASED ON CONSTRUCTION COST INDICES
CUSTOMARILY EMPLOYED IN THE TRADE.
NO OMISSION ON THE PART OF LENDER TO REQUEST
ANY SUCH ASCERTAINMENT SHALL RELIEVE BORROWER OF ANY OF ITS OBLIGATIONS UNDER
THIS SUBSECTION;
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT EACH INDIVIDUAL PROPERTY, SUCH INSURANCE (A) TO BE ON THE SO-CALLED
"OCCURRENCE" FORM WITH A COMBINED SINGLE LIMIT OF NOT LESS THAN $1,000,000.00
PRE OCCURRENCE AND $2,000,000 IN THE AGGREGATE; (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 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. THE DEDUCTIBLE FOR THE
COVERAGE REQUIRED PURSUANT TO THIS SUBSECTION (II) SHALL NOT EXCEED $250,000;
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(III)
BUSINESS INTERRUPTION/LOSS OF RENTS INSURANCE (A) WITH LOSS
PAYABLE TO LENDER AS MORTGAGEE AND LOSS PAYEE; (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 INDIVIDUAL PROPERTY
(ON AN ACTUAL