ON CONSTRUCTION COST INDICES CUSTOMARILY EMPLOYED IN THE
TRADE.
NO OMISSION ON THE PART OF ADMINISTRATIVE AGENT TO REQUEST ANY SUCH
ASCERTAINMENT SHALL RELIEVE BORROWER OF ANY OF ITS OBLIGATIONS UNDER THIS
SUBSECTION;
(II)
COMMERCIAL
GENERAL LIABILITY INSURANCE AGAINST ALL CLAIMS FOR PERSONAL INJURY, BODILY
INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR ABOUT THE PROPERTY, 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 COVER AT LEAST THE FOLLOWING HAZARDS: (1) PREMISES AND
OPERATIONS; AND (2) PRODUCTS AND COMPLETED OPERATIONS ON AN "IF ANY" BASIS; AND
(C) HAVE NO EXCLUSIONS OR LIMITATIONS FOR CONTRACTUAL LIABILITY COVERED UNDER AN
INSURED CONTRACT;
(III)
LOSS OF RENTS
AND/OR BUSINESS INTERRUPTION INSURANCE (A) WITH LOSS PAYABLE TO ADMINISTRATIVE
AGENT, FOR THE BENEFIT OF LENDERS; (B) COVERING ALL RISKS REQUIRED TO BE COVERED
BY THE INSURANCE PROVIDED FOR IN SUBSECTIONS 7.1(A)(I), (IV) AND (VI) THROUGH
(VIII); (C) IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF THE PROJECTED
GROSS INCOME FROM THE PROPERTY (ON AN ACTUAL LOSS SUSTAINED BASIS) FOR A PERIOD
CONTINUING UNTIL THE RESTORATION OF THE PROPERTY 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 THE GREATEST
OF: (X) BORROWER'S REASONABLE ESTIMATE OF THE GROSS INCOME FROM THE PROPERTY AND
(Y) THE HIGHEST GROSS INCOME RECEIVED DURING THE TERM OF THE LOAN FOR ANY FULL
CALENDAR YEAR PRIOR TO THE DATE THE AMOUNT OF SUCH INSURANCE IS BEING
DETERMINED, IN EACH CASE FOR THE SUCCEEDING TWENTY-FOUR (24) MONTH PERIOD AND
(D) CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH PROVIDES THAT
AFTER THE PHYSICAL LOSS TO THE 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
EIGHTEEN (18) MONTHS FROM THE DATE THAT THE PROPERTY IS REPAIRED OR REPLACED AND
OPERATIONS ARE RESUMED, WHICHEVER FIRST OCCURS, AND NOTWITHSTANDING THAT THE
POLICY MAY EXPIRE PRIOR TO THE END OF SUCH PERIOD.
ALL NET PROCEEDS PAYABLE TO
ADMINISTRATIVE AGENT PURSUANT TO THIS SUBSECTION (THE "RENT LOSS PROCEEDS")
SHALL BE HELD BY ADMINISTRATIVE AGENT, FOR THE BENEFIT OF LENDERS, AND SHALL BE
APPLIED TO THE OBLIGATIONS SECURED HEREUNDER FROM TIME TO TIME DUE AND PAYABLE
HEREUNDER AND UNDER THE NOTE; PROVIDED, HOWEVER, THAT (I) NOTHING HEREIN
CONTAINED SHALL BE DEEMED TO RELIEVE BORROWER OF ITS OBLIGATIONS TO PAY THE
OBLIGATIONS
77
SECURED HEREUNDER ON THE RESPECTIVE DATES OF PAYMENT PROVIDED FOR IN
THE NOTE EXCEPT TO THE EXTENT SUCH AMOUNTS ARE ACTUALLY PAID OUT OF THE RENT
LOSS PROCEEDS AND (II) IN THE EVENT THE RENT LOSS PROCEEDS ARE PAID IN A LUMP
SUM IN ADVANCE AND BORROWER IS ENTITLED TO DISBURSEMENT OF SUCH RENT LOSS
PROCEEDS IN ACCORDANCE WITH THE TERMS