MORTGAGEE CLAUSE IN FAVOR OF LENDER PROVIDING THAT THE
LOSS THEREUNDER SHALL BE PAYABLE TO LENDER.
(E)
ALL PROPERTY POLICIES PROVIDED FOR IN
SECTION 6.1 HEREOF SHALL CONTAIN CLAUSES OR ENDORSEMENTS TO THE EFFECT THAT:
(I)
NO ACT OR NEGLIGENCE OF ANY BORROWER, OR
ANYONE ACTING FOR ANY BORROWER, OR OF ANY TENANT OR OTHER OCCUPANT (INCLUDING,
WITHOUT LIMITATION, HRHI
188
WITH RESPECT TO THE HOTEL/CASINO PROPERTY), OR FAILURE TO COMPLY WITH THE
PROVISIONS OF ANY POLICY, WHICH MIGHT OTHERWISE RESULT IN A FORFEITURE OF THE
INSURANCE OR ANY PART THEREOF, SHALL IN ANY WAY AFFECT THE VALIDITY OR
ENFORCEABILITY OF THE INSURANCE INSOFAR AS LENDER IS CONCERNED;
(II)
THE POLICIES SHALL NOT BE MATERIALLY
CHANGED (OTHER THAN TO INCREASE THE COVERAGE PROVIDED THEREBY) OR CANCELED
WITHOUT AT LEAST THIRTY (30) DAYS' NOTICE TO LENDER;
(III)
THE ISSUERS THEREOF SHALL GIVE NOTICE TO
LENDER IF THE POLICIES HAVE NOT BEEN RENEWED FIFTEEN (15) DAYS PRIOR TO THEIR
EXPIRATION; AND
(IV)
LENDER SHALL NOT BE LIABLE FOR ANY INSURANCE
PREMIUMS THEREON OR SUBJECT TO ANY ASSESSMENTS THEREUNDER.
(F)
IF AT ANY TIME LENDER IS NOT IN RECEIPT
OF WRITTEN EVIDENCE THAT ALL POLICIES ARE IN FULL FORCE AND EFFECT, LENDER SHALL
HAVE THE RIGHT, UPON TWO (2) BUSINESS DAYS' WRITTEN NOTICE TO BORROWERS, TO TAKE
SUCH REASONABLE ACTION AS LENDER DEEMS NECESSARY TO PROTECT ITS INTEREST IN ANY
OF THE PROPERTIES, INCLUDING, WITHOUT LIMITATION, THE OBTAINING OF SUCH
INSURANCE COVERAGE AS LENDER IN ITS SOLE DISCRETION DEEMS APPROPRIATE.
ALL
PREMIUMS INCURRED BY LENDER IN CONNECTION WITH SUCH ACTION OR IN OBTAINING SUCH
INSURANCE AND KEEPING IT IN EFFECT SHALL BE PAID BY BORROWERS TO LENDER WITHIN
TEN (10) DAYS AFTER DEMAND AND, UNTIL PAID, SHALL BE SECURED BY THE MORTGAGE AND
SHALL BEAR INTEREST AT THE DEFAULT RATE FROM THE DATE OF DEMAND.
(G)
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET
FORTH HEREIN, PROOF OF ALL PROPERTY COVERAGES REQUIRED UNDER SECTION 6.1(A)
HEREOF SHALL BE ON AN ACORD 28 EVIDENCE OF PROPERTY FORM (2003/10 VERSION) OR ON
SUCH OTHER BINDING FORM AS IS THEN GENERALLY USED OR IS OTHERWISE REASONABLY
ACCEPTABLE TO LENDER.
(H)
NOTWITHSTANDING ANYTHING TO THE CONTRARY SET
FORTH IN THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, LENDER AGREES THAT BY
FUNDING THE ACQUISITION LOAN ON THE CLOSING DATE, THE EXISTING POLICIES AND
COVERAGES COVERING THE PROPERTIES AS OF THE CLOSING DATE ARE SATISFACTORY TO
LENDER IN ALL RESPECTS AND ARE DEEMED TO FULLY COMPLY WITH THE REQUIREMENTS OF
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AS OF THE CLOSING DATE; PROVIDED,
HOWEVER, THAT THE FOREGOING SHALL NOT PREVENT LENDER FROM INSISTING UPON STRICT
COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION 6.1 WITH RESPECT TO ANY FUTURE
POLICIES OR COVERAGE.
Section 6.2
Casualty.
If any Property shall
be damaged or destroyed, in whole or in part, by fire or other casualty (a
"Casualty"), Borrowers shall give prompt notice of such damage to Lender and
shall promptly commence and diligently prosecute the completion of the
Restoration so that such Property