PROPERTY SIMILAR TO THE MORTGAGED PROPERTY LOCATED IN OR AROUND THE REGION IN
WHICH THE MORTGAGED PROPERTY IS LOCATED AND AS MAY BE REASONABLY REQUIRED TO
PROTECT THE ADMINISTRATIVE AGENT'S INTERESTS.
THE BORROWER MUST MAINTAIN
SEISMIC INSURANCE AS FOLLOWS:
(I)
IF A MORTGAGED PROPERTY IS LOCATED IN AN
"EARTHQUAKE PRONE ZONE" AS DETERMINED BY THE U.S. GEOLOGICAL SURVEY, EARTHQUAKE
INSURANCE IN AN AMOUNT NO LESS THAN THE PROBABLE MAXIMUM LOSS LESS ANY
APPLICABLE DEDUCTIBLES NOT EXCEEDING 10% OF THE FULL REPLACEMENT VALUE OF SUCH
PROPERTY, INCLUDING BUSINESS INTERRUPTION COVERAGE, IN AN AMOUNT NOT LESS THAN
THE AMOUNT REQUIRED UNDER SECTION 7.3.(1), ALL AS DETERMINED BY A RECOGNIZED
EARTHQUAKE ENGINEERING FIRM, AND
(II)
SINKHOLE AND MINE SUBSIDENCE INSURANCE, IF
REQUIRED, AS DETERMINED BY ADMINISTRATIVE AGENT IN ITS SOLE DISCRETION AND IN
FORM AND SUBSTANCE SATISFACTORY TO ADMINISTRATIVE AGENT, PROVIDE THAT THE
INSURANCE PURSUANT TO THIS SECTION 7.3 (1)(K)(II) SHALL BE ON TERMS CONSISTENT
WITH THE ALL RISK INSURANCE POLICY REQUIRED UNDER SECTION 7.3(1)(A);
(L)
RATINGS OF INSURERS. ALL INSURANCE PROVIDE
FOR IN SECTION 7.3(1) SHALL BE OBTAINED AND MAINTAIN, OR CAUSE TO BE MAINTAINED,
AT ALL TIMES INSURANCE FOR ITSELF AND ITS PROPERTIES UNDER VALID AND ENFORCEABLE
POLICIES, IN FORM AND SUBSTANCE ACCEPTABLE TO ADMINISTRATIVE AGENT.
ANY NEW
POLICIES FOR MORTGAGED PROPERTY SHALL BE ISSUED BY FINANCIALLY SOUND AND
RESPONSIBLE INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN THE STATE AND
HAVING A CLAIMS PAYING ABILITY RATING OF "A-" OR BETTER BY S&P (OR SUCH OTHER
DEBT RATING AGENCIES APPROVED BY ADMINISTRATIVE AGENT) AND A GENERAL POLICY
RATING OF "A-" OR BETTER AND A FINANCIAL SIZE OF XII OR BETTER BY A.M. BEST
COMPANY, INC.
THE POLICIES FOR MORTGAGED PROPERTIES SHALL DESIGNATE
ADMINISTRATIVE AGENT AND
ITS SUCCESSORS AND ASSIGNS AS ADDITIONAL INSUREDS,
40
mortgagees and/or loss payee as deemed appropriate by Administrative Agent.
Not
less than ten (10) days prior to the expiration dates of the Policies
theretofore furnished to Administrative Agent, renewal Policies accompanied by
evidence satisfactory to Administrative Agent of payment of the premiums due
thereunder (the "Insurance Premiums") shall be delivered by Borrower to
Administrative Agent.
(M)
FORM OF INSURANCE POLICIES; ENDORSEMENTS. THE
POLICIES (I) SHALL NAME THE ADMINISTRATIVE AGENT AND ITS SUCCESSORS AND/OR
ASSIGNS AS THEIR INTEREST MAY APPEAR AS AN ADDITIONAL INSURED, MORTGAGEE OR AS A
LOSS PAYEE (EXCEPT THAT IN THE CASE OF GENERAL LIABILITY INSURANCE, THE
ADMINISTRATIVE AGENT SHALL BE NAMED AN ADDITIONAL INSURED AND NOT A LOSS PAYEE);
(II) SHALL CONTAIN A NON-CONTRIBUTORY STANDARD MORTGAGEE CLAUSE AND, EXCEPT WITH
RESPECT TO GENERAL LIABILITY INSURANCE AND WORKERS' COMPENSATION INSURANCE, A
LENDER'S MORTGAGEE ENDORSEMENT, OR THEIR EQUIVALENTS; (III) SHALL INCLUDE
EFFECTIVE WAIVERS BY THE INSURER OF ALL CLAIMS FOR INSURANCE PREMIUMS AGAINST
ALL LOSS PAYEES, ADDITIONAL INSUREDS AND NAMED INSUREDS (OTHER THAN THE
BORROWER) AND ALL RIGHTS OF SUBROGATION AGAINST ANY LOSS PAYEE, ADDITIONAL
INSURED OR NAMED INSURED; (IV) SHALL CONTAIN SUCH PROVISIONS AS THE
ADMINISTRATIVE AGENT DEEMS REASONABLY NECESSARY OR DESIRABLE TO PROTECT ITS
INTEREST, INCLUDING ENDORSEMENTS PROVIDING THAT NEITHER THE BORROWER, THE
ADMINISTRATIVE