BE WAIVED.
THE AMOUNT OF SUCH TIME ELEMENT COVERAGE SHALL BE
DETERMINED PRIOR TO THE CLOSING DATE AND AT LEAST ONCE EACH YEAR THEREAFTER
BASED ON BORROWER'S REASONABLE ESTIMATE OF THE ANNUAL AMOUNT OF ESTIMATED GROSS
INCOME FOR THE SUCCEEDING EIGHTEEN (18) MONTH PERIOD.
IN THE EVENT THAT ALL OR
ANY PORTION OF THE PROPERTY SHALL BE DAMAGED OR DESTROYED, BORROWER SHALL ASSIGN
TO LENDER ALL CLAIMS UNDER THE POLICIES OF SUCH INSURANCE AND ALL AMOUNTS
PAYABLE AND ALL NET AMOUNTS, WHEN COLLECTED BY BORROWER UNDER SUCH POLICIES.
(III)
IF APPLICABLE, BOILER AND MACHINERY COVERAGE FOR INDIRECT
LOSS/RENTAL INTERRUPTION INSURANCE FOR A PERIOD OF AT LEAST EIGHTEEN (18) MONTHS
FROM THE DATE OF LOSS AS IS REASONABLY REQUIRED BY LENDER.
SUCH COVERAGE SHALL
INSURE AGAINST DIRECT AND INDIRECT LOSS OR DAMAGE TO ALL BUILDING AND TENANT
IMPROVEMENTS AND BETTERMENTS THAT BORROWER IS REQUIRED TO INSURE PURSUANT TO
THIS AGREEMENT BY EXPLOSION OR BREAKDOWN OF MECHANICAL AND ELECTRICAL EQUIPMENT,
INCLUDING STEAM BOILER, AIR CONDITIONING EQUIPMENT, PRESSURE VESSELS OR SIMILAR
APPARATUS, WITH EXCLUSIONS FOR TESTING REMOVED, NOW OR HEREAFTER INSTALLED ON
THE PROPERTY.
(IV)
IF THE "ALL RISK" OR "CAUSES OF LOSS SPECIAL FORM" COMMERCIAL
PROPERTY INSURANCE REQUIRED UNDER SUBSECTION (D)(I)
ABOVE AND THE "ALL RISK
BUILDERS RISK" COMMERCIAL PROPERTY INSURANCE AND THE RENT LOSS AND/OR BUSINESS
INTERRUPTION INSURANCE POLICIES REQUIRED UNDER SUBSECTION (D)(II)
ABOVE DO NOT
COVER PERILS OF TERRORISM OR ACTS OF TERRORISM, BORROWER SHALL MAINTAIN
COMMERCIAL PROPERTY AND RENT LOSS AND/OR BUSINESS INTERRUPTION INSURANCE FOR
LOSS RESULTING FROM PERILS AND ACTS OF TERRORISM ON TERMS (INCLUDING AMOUNTS)
CONSISTENT WITH THOSE REQUIRED UNDER SUBSECTIONS
(C)(I)
AND (C)(II)
ABOVE (A
"TERRORISM POLICY") IF COMMERCIALLY AVAILABLE.
FOR THE PURPOSES OF THIS
AGREEMENT, "TERRORISM" SHALL MEAN THE USE OR THREATENED USE OF FORCE OR VIOLENCE
AGAINST PERSON OR PROPERTY, OR COMMISSION OF AN ACT DANGEROUS TO HUMAN LIFE OR
PROPERTY, UNDERTAKEN BY ANY PERSON OR GROUP, WHETHER OR NOT ACTING ON BEHALF OF
OR IN CONNECTION WITH ANY ORGANIZATION, GOVERNMENT, POWER, AUTHORITY OR MILITARY
FORCE, WHEN THE EFFECT IS TO INTIMIDATE, HARM OR COERCE A GOVERNMENT, THE
CIVILIAN POPULATION OR ANY SEGMENT THEREFORE, OR TO DISRUPT ANY SEGMENT OF THE
ECONOMY.
TERRORISM SHALL ALSO INCLUDE ANY ACT WHICH IS VERIFIED OR RECOGNIZED
BY THE UNITED STATES GOVERNMENT AS AN ACT OF TERRORISM.
(V)
IF APPLICABLE, INSURANCE COVERING THE DECREASE OR DIMINUTION IN
VALUE OF THE PROPERTY RESULTING FROM THE ENFORCEMENT OF ANY LAW, BUILDING CODE,
15
ZONING REGULATION OR OTHER LEGAL REQUIREMENT OR ACT OF ANY GOVERNMENTAL
AUTHORITY TO THE EXTENT THAT THE PROPERTY CANNOT LEGALLY BE RESTORED TO A
CONDITION THAT EXISTED PRIOR TO THE CASUALTY (WHICH INSURANCE SHALL BE IN AN
AMOUNT ACCEPTABLE TO LENDER IN ITS SOLE DISCRETION), PROVIDED
THAT SUCH
INSURANCE IS AVAILABLE TO BORROWER ON COMMERCIALLY REASONABLE TERMS.
(VI)
SUCH OTHER TYPES AND AMOUNTS OF INSURANCE WITH RESPECT TO THE
PROPERTY AND THE OPERATION THEREOF WHICH ARE CUSTOMARILY MAINTAINED IN THE CASE
OF OTHER PROPERTY AND BUILDINGS SIMILAR TO THE PROPERTY IN NATURE, USE,
LOCATION, HEIGHT AND