SPECIFIED IN SECTION 7.1.2 (A "QUALIFIED CARRIER") OR IN THE EVENT THAT SUCH
COVERAGE IS NOT AVAILABLE FROM A QUALIFIED CARRIER, BORROWER SHALL OBTAIN SUCH
COVERAGE FROM THE HIGHEST RATED INSURANCE COMPANY PROVIDING SUCH COVERAGE.
7.1.2
POLICIES.
ALL POLICIES OF INSURANCE (THE "POLICIES")
REQUIRED PURSUANT TO SECTION 7.1.1 SHALL (I) BE ISSUED BY COMPANIES APPROVED BY
LENDER AND LICENSED TO DO BUSINESS IN THE STATE, WITH A CLAIMS PAYING ABILITY
RATING OF "A" OR BETTER BY S&P (AND THE EQUIVALENT BY ANY OTHER RATING AGENCY)
AND A RATING OF A:VIII OR BETTER IN THE CURRENT BEST'S INSURANCE REPORTS;
(II) NAME LENDER AND ITS SUCCESSORS AND/OR ASSIGNS AS THEIR INTEREST MAY APPEAR
AS THE MORTGAGEE (IN THE CASE OF PROPERTY INSURANCE), LOSS PAYEE (IN THE CASE OF
BUSINESS INTERRUPTION/LOSS OF RENTS COVERAGE) AND AN ADDITIONAL INSURED (IN THE
CASE OF LIABILITY INSURANCE); (III) CONTAIN (IN THE CASE OF PROPERTY INSURANCE)
A NON-CONTRIBUTORY STANDARD MORTGAGEE CLAUSE AND A LENDER'S LOSS PAYABLE
ENDORSEMENT, OR THEIR EQUIVALENTS, NAMING LENDER AS THE PERSON TO WHICH ALL
PAYMENTS MADE BY SUCH INSURANCE COMPANY SHALL BE PAID; (IV) CONTAIN A WAIVER OF
SUBROGATION AGAINST LENDER; (V) BE ASSIGNED AND THE ORIGINALS THEREOF DELIVERED
TO LENDER, OR IN LIEU OF DELIVERING ORIGINALS OF THE POLICIES, BORROWER MAY, ON
AN ANNUAL BASIS, DELIVER ACORD EVIDENCES OF COVERAGES OR THE EQUIVALENT, AS
ADEQUATE PROOF OF COVERAGE; PROVIDED, HOWEVER, IF AT ANY TIME, LENDER REQUESTS
CARRIER CERTIFICATION OF POLICIES, BORROWER SHALL DELIVER SUCH CERTIFICATION
WITHIN TEN (10) DAYS OF LENDER'S REQUEST THEREFOR; (VI) CONTAIN SUCH PROVISIONS
AS LENDER DEEMS REASONABLY NECESSARY OR DESIRABLE TO PROTECT ITS INTEREST,
INCLUDING (A) ENDORSEMENTS PROVIDING THAT NEITHER BORROWER, LENDER NOR ANY OTHER
PARTY SHALL BE A CO-INSURER UNDER THE POLICIES, (B) THAT LENDER SHALL RECEIVE AT
LEAST 30 DAYS' PRIOR WRITTEN NOTICE OF ANY MODIFICATION, REDUCTION OR
CANCELLATION OF ANY OF THE POLICIES, (C) AN AGREEMENT WHEREBY THE INSURER WAIVES
ANY RIGHT TO CLAIM ANY PREMIUMS AND COMMISSIONS AGAINST LENDER, PROVIDED THAT
THE POLICY NEED NOT WAIVE THE REQUIREMENT THAT THE PREMIUM BE PAID IN ORDER FOR
A CLAIM TO BE PAID TO THE INSURED AND (D) PROVIDING THAT LENDER IS PERMITTED TO
MAKE PAYMENTS TO EFFECT THE CONTINUATION OF SUCH POLICY
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UPON NOTICE OF CANCELLATION DUE TO NON-PAYMENT OF PREMIUMS; (VII) IN THE EVENT
ANY INSURANCE POLICY (EXCEPT FOR GENERAL PUBLIC AND OTHER LIABILITY AND WORKERS
COMPENSATION INSURANCE) SHALL CONTAIN BREACH OF WARRANTY PROVISIONS, SUCH POLICY
SHALL PROVIDE THAT WITH RESPECT TO THE INTEREST OF LENDER, SUCH INSURANCE POLICY
SHALL NOT BE INVALIDATED BY AND SHALL INSURE LENDER REGARDLESS OF (A) ANY ACT,
FAILURE TO ACT OR NEGLIGENCE OF OR VIOLATION OF WARRANTIES, DECLARATIONS OR
CONDITIONS CONTAINED IN SUCH POLICY BY ANY NAMED INSURED, (B) THE OCCUPANCY OR
USE OF THE PREMISES FOR PURPOSES MORE HAZARDOUS THAN PERMITTED BY THE TERMS
THEREOF, OR (C) ANY FORECLOSURE OR OTHER ACTION OR PROCEEDING TAKEN BY LENDER
PURSUANT TO ANY PROVISION OF THE LOAN DOCUMENTS; AND (VIII) BE SATISFACTORY IN
FORM AND SUBSTANCE TO LENDER