A "REAL ESTATE
OPERATING COMPANY" WITHIN THE MEANING OF 29 C.F.R. §2510.3 101(C) OR (E).
ARTICLE VI.
INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
SECTION 6.1.
INSURANCE.
(A)
BORROWER SHALL OBTAIN AND MAINTAIN, OR CAUSE TO BE MAINTAINED,
INSURANCE FOR BORROWER AND THE PROPERTY PROVIDING AT LEAST THE FOLLOWING
COVERAGES:
(I)
COMPREHENSIVE ALL RISK INSURANCE ON THE IMPROVEMENTS AND THE
PERSONAL PROPERTY, INCLUDING CONTINGENT LIABILITY FROM OPERATION OF BUILDING
LAWS, DEMOLITION COSTS AND INCREASED COST OF CONSTRUCTION ENDORSEMENTS, IN EACH
CASE (A) IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF THE "FULL
REPLACEMENT COST," WHICH FOR PURPOSES OF THIS AGREEMENT SHALL MEAN ACTUAL
REPLACEMENT VALUE (EXCLUSIVE OF COSTS OF EXCAVATIONS, FOUNDATIONS, UNDERGROUND
UTILITIES AND FOOTINGS) WITH A WAIVER OF DEPRECIATION,
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(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 $250,000 FOR ALL SUCH INSURANCE COVERAGE; AND
(D) CONTAINING AN "ORDINANCE OR LAW COVERAGE" OR "ENFORCEMENT" ENDORSEMENT IF
ANY OF THE IMPROVEMENTS OR THE USE OF THE PROPERTY SHALL AT ANY TIME CONSTITUTE
LEGAL NON-CONFORMING STRUCTURES OR USES.
IN ADDITION, BORROWER SHALL OBTAIN:
(X) IF ANY PORTION OF THE IMPROVEMENTS IS CURRENTLY OR AT ANY TIME IN THE FUTURE
LOCATED IN A FEDERALLY DESIGNATED "SPECIAL FLOOD HAZARD AREA", FLOOD HAZARD
INSURANCE IN AN AMOUNT EQUAL TO THE LESSER OF (1) THE OUTSTANDING PRINCIPAL
BALANCE OF THE NOTE OR (2) THE MAXIMUM AMOUNT OF SUCH INSURANCE AVAILABLE UNDER
THE NATIONAL FLOOD INSURANCE ACT OF 1968, THE FLOOD DISASTER PROTECTION ACT OF
1973 OR THE NATIONAL FLOOD INSURANCE REFORM ACT OF 1994, AS EACH MAY BE AMENDED
OR SUCH GREATER AMOUNT AS LENDER SHALL REQUIRE; (Y) EARTHQUAKE INSURANCE IN
AMOUNTS AND IN FORM AND SUBSTANCE SATISFACTORY TO LENDER IN THE EVENT THE
PROPERTY IS LOCATED IN AN AREA WITH A HIGH DEGREE OF SEISMIC ACTIVITY AND
(Z) WINDSTORM INSURANCE IN AMOUNTS AND IN FORM AND SUBSTANCE SATISFACTORY TO
LENDER IN THE EVENT THAT THE SAME IS EXCLUDED FROM THE ALL RISK INSURANCE
POLICY, PROVIDED THAT THE INSURANCE PURSUANT TO CLAUSES (X), (Y) AND (Z) SHALL
BE ON TERMS CONSISTENT WITH THE COMPREHENSIVE ALL RISK INSURANCE POLICY REQUIRED
UNDER THIS SECTION 6.1(A)(I);
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE AGAINST CLAIMS FOR
PERSONAL INJURY, BODILY INJURY, DEATH OR PROPERTY DAMAGE OCCURRING UPON, IN OR
ABOUT THE PROPERTY, SUCH INSURANCE (A) TO BE ON THE SO-CALLED "OCCURRENCE" FORM
WITH A COMBINED LIMIT OF NOT LESS THAN $2,000,000 IN THE AGGREGATE AND
$1,000,000 PER OCCURRENCE (AND, IF ON A BLANKET POLICY, CONTAINING AN "AGGREGATE
PER LOCATION" ENDORSEMENT); (B) TO CONTINUE AT NOT LESS THAN THE AFORESAID LIMIT
UNTIL REQUIRED TO BE CHANGED BY LENDER IN WRITING BY REASON OF CHANGED ECONOMIC
CONDITIONS MAKING SUCH PROTECTION INADEQUATE; AND (C) TO COVER AT LEAST THE
FOLLOWING HAZARDS: (1) PREMISES AND OPERATIONS; (2) PRODUCTS AND COMPLETED
OPERATIONS ON AN "IF ANY" BASIS; (3) INDEPENDENT CONTRACTORS; (4) BLANKET
CONTRACTUAL LIABILITY FOR ALL LEGAL CONTRACTS; (5) CONTRACTUAL LIABILITY
COVERING THE INDEMNITIES CONTAINED IN SECTION 9.3