PARTY WILL, AND WILL CAUSE EACH OF ITS SUBSIDIARIES TO, MAINTAIN OR CAUSE TO BE
MAINTAINED IN GOOD REPAIR, WORKING ORDER AND CONDITION, ORDINARY WEAR AND TEAR
EXCEPTED, ALL MATERIAL PROPERTIES USED OR USEFUL IN THE BUSINESS OF THE BORROWER
AND ITS SUBSIDIARIES AND FROM TIME TO TIME WILL MAKE OR CAUSE TO BE MADE ALL
APPROPRIATE REPAIRS, RENEWALS AND REPLACEMENTS THEREOF.
70
5.5
INSURANCE.
THE BORROWER WILL MAINTAIN OR
CAUSE TO BE MAINTAINED, WITH FINANCIALLY SOUND AND REPUTABLE INSURERS, SUCH
PUBLIC LIABILITY INSURANCE, THIRD PARTY PROPERTY DAMAGE INSURANCE, BUSINESS
INTERRUPTION INSURANCE AND CASUALTY INSURANCE WITH RESPECT TO LIABILITIES,
LOSSES OR DAMAGE IN RESPECT OF THE ASSETS, PROPERTIES AND BUSINESSES OF THE
BORROWER AND ITS SUBSIDIARIES AS MAY CUSTOMARILY BE CARRIED OR MAINTAINED UNDER
SIMILAR CIRCUMSTANCES BY PERSONS OF ESTABLISHED REPUTATION ENGAGED IN SIMILAR
BUSINESSES, IN EACH CASE IN SUCH AMOUNTS (GIVING EFFECT TO SELF-INSURANCE), WITH
SUCH DEDUCTIBLES, COVERING SUCH RISKS AND OTHERWISE ON SUCH TERMS AND CONDITIONS
AS SHALL BE CUSTOMARY FOR SUCH PERSONS.
WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, THE BORROWER WILL MAINTAIN OR CAUSE TO BE MAINTAINED (A) FLOOD
INSURANCE WITH RESPECT TO EACH FLOOD HAZARD PROPERTY THAT IS LOCATED IN A
COMMUNITY THAT PARTICIPATES IN THE NATIONAL FLOOD INSURANCE PROGRAM, IN EACH
CASE IN COMPLIANCE WITH ANY APPLICABLE REGULATIONS OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM, AND (B) REPLACEMENT VALUE CASUALTY INSURANCE ON THE
COLLATERAL UNDER SUCH POLICIES OF INSURANCE, WITH SUCH INSURANCE COMPANIES, IN
SUCH AMOUNTS, WITH SUCH DEDUCTIBLES, AND COVERING SUCH RISKS AS ARE AT ALL TIMES
CARRIED OR MAINTAINED UNDER SIMILAR CIRCUMSTANCES BY PERSONS OF ESTABLISHED
REPUTATION ENGAGED IN SIMILAR BUSINESSES.
EACH SUCH POLICY OF INSURANCE SHALL
(I) NAME COLLATERAL AGENT, ON BEHALF OF SECURED PARTIES AS AN ADDITIONAL INSURED
THEREUNDER AS ITS INTERESTS MAY APPEAR AND (II) IN THE CASE OF EACH CASUALTY
INSURANCE POLICY, CONTAIN A LOSS PAYABLE CLAUSE OR ENDORSEMENT, SATISFACTORY IN
FORM AND SUBSTANCE TO THE COLLATERAL AGENT, THAT NAMES THE COLLATERAL AGENT, ON
BEHALF OF LENDERS, AS THE LOSS PAYEE THEREUNDER AND PROVIDES FOR AT LEAST THIRTY
DAYS' PRIOR WRITTEN NOTICE TO THE COLLATERAL AGENT OF ANY MODIFICATION OR
CANCELLATION OF SUCH POLICY.
5.6
INSPECTIONS.
EACH CREDIT PARTY WILL, AND
WILL CAUSE EACH OF ITS SUBSIDIARIES TO, PERMIT ANY AUTHORIZED REPRESENTATIVES
DESIGNATED BY ANY AGENT OR ANY LENDER, OR ANY AGENTS OR REPRESENTATIVES THEREOF,
TO VISIT AND INSPECT ANY OF THE PROPERTIES OF ANY CREDIT PARTY AND ANY OF ITS
SUBSIDIARIES, TO (A) INSPECT, COPY AND TAKE EXTRACTS FROM ITS AND THEIR
FINANCIAL AND ACCOUNTING RECORDS AND (B) DISCUSS ITS AND THEIR AFFAIRS, FINANCES
AND ACCOUNTS WITH ITS AND THEIR RESPECTIVE OFFICERS AND DIRECTORS, ALL UPON
REASONABLE NOTICE (EXCEPT THAT DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, NO
SUCH NOTICE SHALL BE REQUIRED) AND AT SUCH REASONABLE TIMES DURING NORMAL
BUSINESS HOURS AND AS OFTEN AS MAY REASONABLY BE REQUESTED.
THE BORROWER SHALL
AUTHORIZE ITS CERTIFIED PUBLIC ACCOUNTANTS (INCLUDING THE BORROWER'S
ACCOUNTANTS), AND SHALL CAUSE THE CERTIFIED PUBLIC ACCOUNTANTS OF ANY OTHER