THE MATERIAL AGREEMENTS THE NON-PERFORMANCE OF WHICH WOULD CAUSE A MATERIAL
ADVERSE EFFECT.
(D)
LENDER'S APPROVAL OF ANY MATERIAL AGREEMENT SHALL BE SUBJECT TO
THE SAME DEEMED APPROVAL PROVISIONS CONTAINED IN SECTION 5.1.17 HEREOF
APPLICABLE TO LEASES.
VI.
INSURANCE; CASUALTY AND CONDEMNATION
Section 6.1
Insurance.
(A)
BORROWER SHALL OBTAIN AND MAINTAIN, OR CAUSE MORTGAGE BORROWER TO
MAINTAIN, POLICIES PROVIDING AT LEAST THE FOLLOWING COVERAGES:
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(I)
COMPREHENSIVE ALL RISK INSURANCE, INCLUDING THE PERIL OF WIND
(NAMED STORMS) ON THE IMPROVEMENTS AND THE PERSONAL PROPERTY, IN EACH CASE (A)
HAVING A 100% "REPLACEMENT COST VALUATION" CLAUSE OR ENDORSEMENT, WHICH FOR
PURPOSES OF THIS AGREEMENT SHALL MEAN ACTUAL REPLACEMENT VALUE OF EACH
INDIVIDUAL PROPERTY (EXCLUSIVE OF COSTS OF EXCAVATIONS, FOUNDATIONS, UNDERGROUND
UTILITIES AND FOOTINGS), WITH A WAIVER OF DEPRECIATION, (B) CONTAINING AN AGREED
AMOUNT ENDORSEMENT WITH RESPECT TO THE IMPROVEMENTS AND PERSONAL PROPERTY
WAIVING ALL CO-INSURANCE PROVISIONS; (C) PROVIDING FOR NO DEDUCTIBLE IN EXCESS
OF
$1,000,000 (OTHER THAN WITH RESPECT TO WIND STORM COVERAGE, WHICH DEDUCTIBLE
WILL NOT EXCEED 5% OF THE TOTAL INSURABLE VALUE OF THE INDIVIDUAL PROPERTY WHERE
THE PHYSICAL LOSS OR DAMAGE OCCURRED); AND (D) PROVIDING COVERAGE FOR CONTINGENT
LIABILITY FROM OPERATION OF BUILDING LAWS, DEMOLITION COSTS AND INCREASED COST
OF CONSTRUCTION ENDORSEMENTS TOGETHER WITH AN "ORDINANCE OR LAW COVERAGE" OR
"ENFORCEMENT" ENDORSEMENT IF ANY OF THE IMPROVEMENTS OR THE USE OF ANY
INDIVIDUAL PROPERTY SHALL AT ANY TIME CONSTITUTE LEGAL NON-CONFORMING STRUCTURES
OR USES;
(II)
BUSINESS INTERRUPTION/LOSS OF RENTS INSURANCE (A) WITH LOSS
PAYABLE TO LENDER, MEZZANINE A LENDER AND/OR MORTGAGE LENDER, AS THEIR INTERESTS
MAY APPEAR; (B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE INSURANCE
PROVIDED FOR IN SECTION 6.1(A)(I) ABOVE; (C) IN AN AMOUNT EQUAL TO THE GREATER
OF (1) THE ESTIMATED GROSS INCOME FROM THE OPERATION OF EACH INDIVIDUAL
PROPERTY, OR (2) THE PROJECTED OPERATING EXPENSES (INCLUDING DEBT SERVICE,
MEZZANINE A DEBT SERVICE AND MORTGAGE LOAN DEBT SERVICE) FOR THE MAINTENANCE AND
OPERATION OF EACH INDIVIDUAL PROPERTY, IN EACH CASE FOR THE PERIOD OF
RESTORATION ON AN ACTUAL LOSS SUSTAINED BASIS FOR LIMIT PURCHASED NOT LESS THAN
THE SUCCEEDING 18 MONTH PERIOD; THE AMOUNT OF SUCH INSURANCE SHALL BE INCREASED
FROM TIME TO TIME, AT LENDER'S REQUEST BUT IN NO EVENT MORE FREQUENTLY THAN ONCE
EVERY CALENDAR YEAR, AS AND WHEN THE RENTS INCREASE OR THE ESTIMATE OF (OR THE
ACTUAL) GROSS INCOME INCREASES; 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 EITHER SUCH INCOME RETURNS TO THE SAME LEVEL IT WAS
AT PRIOR TO THE LOSS, OR THE DATE WHICH IS 365 DAYS AFTER THE DATE THAT THE
APPLICABLE INDIVIDUAL PROPERTY IS REPAIRED OR REPLACED AND OPERATIONS ARE
RESUMED, WHICHEVER FIRST OCCURS, IN EACH CASE NOTWITHSTANDING THAT THE POLICY
MAY EXPIRE PRIOR TO THE END OF SUCH PERIOD. ALL INSURANCE PROCEEDS PAYABLE TO
LENDER, MEZZANINE A LENDER AND/OR MORTGAGE LENDER, AS THEIR INTERESTS MAY