TO
AGENT THAT ALL PREMIUMS THEREFOR HAVE BEEN PAID AND THAT THE POLICIES ARE IN
FULL FORCE AND EFFECT.
(C)
AS TO AGENT AND THE LENDERS.
EACH
INSURANCE POLICY SHALL CONTAIN A PROVISION WHEREBY THE INSURER (1) AGREES THAT
SUCH POLICY SHALL NOT BE CANCELED OR FAIL TO BE RENEWED, WITHOUT AT LEAST THIRTY
(30) DAYS' PRIOR WRITTEN NOTICE TO AGENT, (2) WAIVES ANY RIGHT TO CLAIM ANY
PREMIUMS AND COMMISSIONS AGAINST AGENT AND THE LENDERS, 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 (3) PROVIDES THAT AGENT IS PERMITTED TO MAKE
PAYMENTS TO EFFECT THE CONTINUATION OF SUCH POLICY UPON WRITTEN NOTICE OF
CANCELLATION DUE TO NONPAYMENT OF PREMIUMS AND PERMITTING BORROWER FIVE (5) DAYS
TO CURE THE NONPAYMENT, PROVIDED THAT CANCELLATION OR TERMINATION SHALL NOT
OTHERWISE OCCUR DURING THIS 5-DAY PERIOD.
BORROWER SHALL NOTIFY AGENT IN THE
EVENT THAT (X) SUCH POLICY SHALL BE CANCELED OR TERMINATED, (Y) THE COVERAGE,
DEDUCTIBLE AND LIMITS OF SUCH POLICY SHALL BE SIGNIFICANTLY MODIFIED, OR
(Z) OTHER PROVISIONS OF SUCH POLICY SHALL BE MODIFIED IF SUCH POLICY, AFTER
GIVING EFFECT TO SUCH MODIFICATION, AND ALL MODIFICATIONS IN THE AGGREGATE,
WOULD NOT SATISFY THE REQUIREMENTS OF THIS LOAN AGREEMENT.
NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THE PRECEDING SENTENCE, BORROWER SHALL BE REQUIRED
TO MAINTAIN SUCH INSURANCE
81
POLICIES IN ACCORDANCE WITH THE REQUIREMENTS OF THIS LOAN AGREEMENT.
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 AGENT, SUCH
INSURANCE POLICY SHALL NOT BE INVALIDATED BY AND SHALL INSURE AGENT 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,
WITHOUT KNOWLEDGE OF AGENT, (B) THE OCCUPANCY OR USE OF ANY PROPERTY FOR
PURPOSES MORE HAZARDOUS THAN PERMITTED BY THE TERMS THEREOF, OR (C) ANY
FORECLOSURE OR OTHER ACTION OR PROCEEDING TAKEN BY AGENT PURSUANT TO ANY
PROVISION OF THIS LOAN AGREEMENT.
(D)
BLANKET POLICIES.
ANY INSURANCE MAINTAINED
PURSUANT TO THIS SECTION 8.11 MAY BE EVIDENCED BY BLANKET INSURANCE POLICIES
COVERING THE PROPERTIES (OR ANY PORTION THEREOF) AND OTHER PROPERTIES OR ASSETS
OF BORROWER OR ITS AFFILIATES; PROVIDED, THAT ANY SUCH POLICY SHALL IN ALL OTHER
RESPECTS COMPLY WITH THE REQUIREMENTS OF THIS SECTION 8.11.
(E)
AGENT'S RIGHT TO PROCURE INSURANCE.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, IF AT ANY TIME AGENT
IS NOT IN RECEIPT OF WRITTEN EVIDENCE THAT ALL INSURANCE REQUIRED HEREUNDER IS
MAINTAINED IN FULL FORCE AND EFFECT, AGENT SHALL HAVE THE RIGHT (BUT NOT THE
OBLIGATION) TO TAKE SUCH ACTION AS AGENT DEEMS NECESSARY TO PROTECT ITS
INTERESTS IN THE PROPERTIES, INCLUDING THE OBTAINING OF SUCH INSURANCE COVERAGES
AS ARE REQUIRED HEREUNDER, AND ALL EXPENSES INCURRED BY AGENT IN CONNECTION WITH
SUCH ACTION OR IN OBTAINING SUCH INSURANCE AND