NOT EXCEED $25,000, PROVIDED SUCH
COVERAGE IS COMMERCIALLY AVAILABLE FOR PROPERTIES SIMILAR TO THE PROPERTY AND
LOCATED IN OR AROUND THE REGION IN WHICH THE PROPERTY IS LOCATED.
(III)
BOILER AND MACHINERY INSURANCE.
BROAD FORM
BOILER AND MACHINERY INSURANCE (WITHOUT EXCLUSION FOR EXPLOSION) AND SYSTEMS
BREAKDOWN COVERAGE MUST BE MAINTAINED, COVERING ALL STEAM BOILERS, PIPES,
TURBINES, ENGINES OR OTHER PRESSURE VESSELS, ELECTRICAL MACHINERY, HVAC
EQUIPMENT, REFRIGERATION EQUIPMENT AND OTHER SIMILAR MECHANICAL EQUIPMENT
LOCATED IN, ON OR ABOUT THE PROPERTY IN SUCH AMOUNT PER ACCIDENT EQUAL TO THE
FULL REPLACEMENT COST THEREOF (AS REASONABLY DETERMINED AND ADJUSTED FROM TIME
TO TIME BY LENDER) AND ALSO PROVIDING COVERAGE AGAINST LOSS OF OCCUPANCY OR USE
ARISING FROM ANY BREAKDOWN THEREOF.
THE POLICY MUST NAME LENDER AS AN INSURED
UNDER A STANDARD JOINT LOSS CLAUSE AND PROVIDE THAT ALL PROCEEDS ARE TO BE PAID
TO LENDER.
(IV)
FLOOD INSURANCE.
FLOOD INSURANCE MUST BE
MAINTAINED IF ANY PORTION OF THE IMPROVEMENTS IS LOCATED IN AN AREA IDENTIFIED
BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR ANY SUCCESSOR THERETO AS A
100-YEAR FLOOD ZONE OR SPECIAL HAZARD AREA.
THE REQUIRED COVERAGE AMOUNT SHALL
BE EQUAL TO THE FULL REPLACEMENT COST OF THE IMPROVEMENTS AND PERSONAL PROPERTY
(WITHOUT TAKING INTO ACCOUNT ANY DEPRECIATION AND EXCLUSIVE OF EXCAVATIONS,
FOOTINGS AND FOUNDATIONS, LANDSCAPING AND PAVING).
SUCH COVERAGE MAY NEED TO BE
PURCHASED THROUGH EXCESS CARRIERS IF THE REQUIRED COVERAGE EXCEEDS THE MAXIMUM
INSURANCE AVAILABLE FOR THE PROPERTY UNDER THE THEN-CURRENT GUIDELINES PUBLISHED
BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY OR ANY SUCCESSOR THERETO.
THE POLICY
MUST NAME LENDER AS AN INSURED MORTGAGEE UNDER A STANDARD MORTGAGEE CLAUSE.
47
(V)
BUSINESS INTERRUPTION.
BUSINESS
INTERRUPTION INSURANCE MUST BE MAINTAINED IN AN AMOUNT SUFFICIENT TO PROVIDE THE
LOST RENTAL INCOME FOR THE PROPERTY FOR A PERIOD OF NOT LESS THAN 1 YEAR FROM
THE DATE OF CASUALTY, WITH A 6 MONTH EXTENDED PERIOD OF INDEMNITY.
FOR PURPOSES
OF THIS COVERAGE, "RENTAL INCOME" MEANS THE SUM OF (A) THE TOTAL, THEN
ASCERTAINABLE RENTS PAYABLE UNDER THE LEASES AND (B) THE TOTAL ASCERTAINABLE
AMOUNT OF ALL OTHER PAYMENTS TO BE RECEIVED BY BORROWER FROM THIRD PARTIES WHICH
ARE THE LEGAL OBLIGATION OF THE TENANTS, REDUCED TO THE EXTENT SUCH AMOUNTS
WOULD NOT BE RECEIVED BECAUSE OF OPERATING EXPENSES NOT INCURRED DURING THE
PERIOD THAT ANY PORTION OF THE PROPERTY CANNOT BE OCCUPIED AS A RESULT OF THE
CASUALTY.
THE POLICY MUST NAME LENDER AS A LOSS PAYEE AND PROVIDE THAT ALL
PROCEEDS ARE TO BE PAID TO LENDER.
(VI)
LIABILITY INSURANCE.
COMMERCIAL GENERAL
LIABILITY INSURANCE COVERAGE MUST BE MAINTAINED, COVERING BODILY INJURY OR DEATH
AND PROPERTY DAMAGE, INCLUDING ALL LEGAL LIABILITY TO THE EXTENT INSURABLE AND
ALL COURT COSTS, LEGAL FEES AND EXPENSES, ARISING OUT OF, OR CONNECTED WITH, THE
POSSESSION, USE, LEASING, OPERATION, MAINTENANCE OR CONDITION OF THE PROPERTY IN
SUCH AMOUNTS GENERALLY REQUIRED BY INSTITUTIONAL LENDERS FOR PROPERTIES
COMPARABLE TO THE PROPERTY BUT IN NO EVENT FOR A COMBINED SINGLE LIMIT OF LESS
THAN $2 MILLION AND $1 MILLION PER OCCURRENCE.
THE REQUIRED