THEIR TREND RATING AS INDICATED BY A.M. BEST IS STABLE OR
TRENDING POSITIVE AND IF THEIR POTENTIAL LIABILITY FOR LOSS DOES NOT EXCEED FIVE
PERCENT (5%) OF THEIR POLICY-HOLDER SURPLUS; SUCH INSURERS WITH A NEGATIVE TREND
SHALL NOT BE PERMITTED".
AGENT MAY (BUT HAS NO OBLIGATION TO), AT ITS SOLE
DISCRETION, ACCEPT INSURERS THAT DO
80
NOT MEET THE MINIMUM REQUIREMENTS STATED HEREIN.
THE PROPERTY AND BOILER AND
MACHINERY INSURANCE POLICIES AS REQUIRED IN SCHEDULE 8.11 SHALL ALSO NAME AGENT
AND EACH LENDER UNDER A NON-CONTRIBUTING NEW YORK STANDARD MORTGAGEE OR LENDER
LOSS PAYEE CLAUSE AND, WITH RESPECT TO RENTAL INCOME, AS LENDER LOSS PAYEE, ON
FORMS REASONABLY ACCEPTABLE TO AGENT, OR EQUIVALENT ENDORSEMENTS REASONABLY
SATISFACTORY TO AGENT AND SHALL BE OTHERWISE REASONABLY SATISFACTORY TO AGENT IN
FORM AND CONTENT.
ALL PROPERTY INSURANCE POLICIES ALSO SHALL INCLUDE A
REPLACEMENT COST AND CO-INSURANCE WAIVER AND/OR AN AGREED AMOUNT ENDORSEMENTS
AND OTHER ENDORSEMENTS AS ARE PROVIDED IN SCHEDULE 8.11 ATTACHED HERETO.
THE
AMOUNT OF ANY DEDUCTIBLE UNDER ANY INSURANCE POLICY MUST BE REASONABLY
ACCEPTABLE TO AGENT.
NO INSURANCE POLICY SHALL CONTAIN ANY EXCLUSION FOR
EARTHQUAKE OR TERRORISM AS DEFINED IN THE TERRORISM RISK INSURANCE PROGRAM
REAUTHORIZATION ACT OF 2007 ("TRIPRA") OR ITS REPLACEMENT OR BE SUBJECT TO ANY
SUBLIMIT FOR TRIPRA OR ITS REPLACEMENT. EARTHQUAKE INSURANCE MAY BE SUB-LIMITED
ON A REASONABLE BASIS CONSIDERING EARTHQUAKE LOCATION RISK AND ANNUAL AGGREGATE
SUB-LIMITS WITH THE REASONABLY PRIOR APPROVAL OF AGENT.
WITHOUT AGENT'S PRIOR
CONSENT, BORROWER SHALL NOT NAME ANY PERSON OTHER THAN AGENT AS LOSS PAYEE OR
MORTGAGEE UNDER ANY PROPERTY INSURANCE POLICIES NOR SHALL BORROWER CARRY
SEPARATE OR ADDITIONAL INSURANCE COVERAGE COVERING ALL OF THE PROPERTIES AND
SUCH IMPROVEMENTS AND BETTERMENTS WHICH BORROWER IS REQUIRED TO INSURE PURSUANT
TO ANY AGREEMENT CONCURRENT IN FORM OR CONTRIBUTING IN THE EVENT OF LOSS WITH
THAT REQUIRED BY THIS LOAN AGREEMENT OR THE LOAN AGREEMENT; PROVIDED, THAT, IF
BLANKET POLICIES ARE OBTAINED, THIS SENTENCE SHALL NOT APPLY TO PROPERTY COVERED
BY SUCH BLANKET POLICIES, OTHER THAN THE PROPERTIES AND SUCH IMPROVEMENTS AND
BETTERMENTS.
BORROWER SHALL PAY THE PREMIUMS FOR THE INSURANCE POLICIES AS THE
SAME BECOME DUE AND PAYABLE.
BORROWER SHALL DELIVER TO AGENT COPIES OF THE
INSURANCE POLICIES, WHEN AVAILABLE, REQUIRED TO BE MAINTAINED PURSUANT TO
SECTION 8.11(A) HEREOF, PROVIDED, HOWEVER, AGENT SHALL NOT BE DEEMED BY REASON
OF THE CUSTODY OF SUCH INSURANCE POLICIES TO HAVE KNOWLEDGE OF THE CONTENTS
THEREOF.
BORROWER ALSO SHALL DELIVER TO AGENT, WITHIN THREE (3) DAYS OF AGENT'S
REQUEST, A CERTIFICATE OF BORROWER OR BORROWER'S INSURANCE AGENT EVIDENCING THE
COVERAGES SET FORTH HEREIN TOGETHER WITH EVIDENCE THAT ALL PREMIUMS DUE THEREON
HAVE BEEN PAID AND THAT THE SAME ARE IN FULL FORCE AND EFFECT.
NOT LATER THAN
THREE (3) DAYS PRIOR TO THE EXPIRATION DATE OF EACH OF THE INSURANCE POLICIES,
BORROWER SHALL DELIVER TO AGENT A CERTIFICATE OF INSURANCE EVIDENCING RENEWAL OF
COVERAGE AS REQUIRED HEREIN OR, AT AGENT'S REQUEST, A COPY OF A RENEWAL POLICY
OR POLICIES, WHEN AVAILABLE, IN EACH CASE TOGETHER WITH EVIDENCE SATISFACTORY