PROPERTY DAMAGE, OCCURRING
ON, IN OR ABOUT THE PROJECTS IN SUCH AMOUNTS AS LENDER MAY FROM TIME TO TIME
REASONABLY REQUIRE (BUT IN NO EVENT SHALL LENDER'S REQUIREMENTS BE INCREASED
MORE FREQUENTLY THAN ONCE DURING EACH TWELVE (12) MONTH PERIOD) AND WHICH ARE
CUSTOMARILY REQUIRED BY INSTITUTIONAL LENDERS FOR SIMILAR PROPERTIES SIMILARLY
SITUATED, BUT NOT LESS THAN $1,000,000 PER OCCURRENCE AND $2,000,000 GENERAL
AGGREGATE ON A PER LOCATION BASIS AND, IN ADDITION THERETO, NOT LESS THAN
$75,000,000 EXCESS AND/OR UMBRELLA LIABILITY INSURANCE SHALL BE MAINTAINED FOR
ANY AND ALL CLAIMS.
(III)
BUSINESS INCOME OR LOSS OF RENTS OR OTHER SIMILAR INSURANCE (A) WITH
LOSS PAYABLE TO LENDER, (B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE
INSURANCE PROVIDED FOR IN SECTION 3.01(A)(I) HEREOF, (C) IN AN AMOUNT NOT LESS
THAN 100%
51
OF THE PROJECTED FIXED OR BASE RENT PLUS PERCENTAGE RENT FOR THE SUCCEEDING
EIGHTEEN (18) MONTH PERIOD. THE AMOUNT OF SUCH INSURANCE SHALL BE DETERMINED
UPON THE EXECUTION OF THIS AGREEMENT, AND NOT MORE FREQUENTLY THAN ONCE EACH
CALENDAR YEAR THEREAFTER BASED ON BORROWER'S REASONABLE ESTIMATE OF PROJECTED
FIXED OR BASE RENT PLUS PERCENTAGE RENT, FROM THE PROJECTS FOR THE NEXT
SUCCEEDING EIGHTEEN (18) MONTHS, (D) CONTAINING AN UNLIMITED INDEMNITY PERIOD
DURING THE TIME THAT IT TAKES TO REPAIR OR REBUILD THE DAMAGED PROPERTY, AND
(E) CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH PROVIDES THAT
AFTER THE PHYSICAL LOSS TO THE PROPERTY HAS BEEN REPAIRED, THE CONTINUED LOSS OF
INCOME WILL BE INSURED UNTIL SUCH INCOME EITHER RETURNS TO THE SAME LEVEL IT WAS
AT PRIOR TO THE LOSS, OR THE EXPIRATION OF TWELVE (12) MONTHS FROM THE DATE THAT
THE PROPERTY IS REPAIRED OR REPLACED AND OPERATIONS ARE RESUMED, WHICHEVER FIRST
OCCURS, AND NOTWITHSTANDING THAT THE POLICY MAY EXPIRE PRIOR TO THE END OF SUCH
PERIOD. IN THE EVENT THAT A PROJECT SHALL BE DAMAGED OR DESTROYED, BORROWER
SHALL AND HEREBY DOES ASSIGN TO LENDER ALL PAYMENT OF CLAIMS UNDER THE POLICIES
OF SUCH INSURANCE, AND ALL AMOUNTS PAYABLE THEREUNDER, AND ALL NET AMOUNTS,
SHALL BE COLLECTED BY LENDER UNDER SUCH POLICIES AND SHALL BE APPLIED IN
ACCORDANCE WITH THIS AGREEMENT; PROVIDED, HOWEVER, THAT NOTHING HEREIN CONTAINED
SHALL BE DEEMED TO RELIEVE BORROWER OF ITS OBLIGATIONS TO TIMELY PAY ALL AMOUNTS
DUE UNDER THE LOAN DOCUMENTS.
(IV)
INTENTIONALLY OMITTED.
(V)
INSURANCE AGAINST LOSS OR DAMAGES FROM EXPLOSION OF STEAM BOILERS, AIR
CONDITIONING EQUIPMENT, PRESSURE VESSELS OR SIMILAR APPARATUS NOW OR HEREAFTER
INSTALLED AT THE PROJECTS, IN SUCH AMOUNTS AS LENDER MAY FROM TIME TO TIME
REASONABLY REQUIRE AND WHICH ARE THEN CUSTOMARILY REQUIRED BY INSTITUTIONAL
LENDERS OF SIMILAR PROPERTIES SIMILARLY SITUATED.
(VI)
IF, AS TO ANY PROJECT, THE IMPROVEMENTS THEREON OR ANY PART THEREOF IS
SITUATED IN AN AREA DESIGNATED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY
("FEMA") AS A SPECIAL FLOOD HAZARD AREA (ZONE A OR ZONE V), FLOOD INSURANCE IN
AN AMOUNT EQUAL TO THE MINIMUM AMOUNT REQUIRED, UNDER THE TERMS OF COVERAGE, TO
COMPENSATE FOR ANY DAMAGE OR LOSS ON A REPLACEMENT