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 ONE HUNDRED THOUSAND AND NO/100 DOLLARS
($100,000) FOR ALL SUCH INSURANCE COVERAGE EXCLUDING WINDSTORM AND EARTHQUAKE
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:
(Y) IF ANY PORTION OF THE IMPROVEMENTS IS CURRENTLY OR AT ANY TIME IN
THE FUTURE LOCATED IN A "SPECIAL FLOOD HAZARD AREA," AS DESIGNATED BY THE
FEDERAL EMERGENCY MANAGEMENT AGENCY OR SUCH OTHER APPLICABLE FEDERAL AGENCY,
FLOOD HAZARD INSURANCE IN AN AMOUNT EQUAL TO THE MAXIMUM AMOUNT AVAILABLE UNDER
THE NATIONAL FLOOD INSURANCE PROGRAM AND IN ADDITION TO THE MAXIMUM AVAILABLE
UNDER THE NATIONAL FLOOD PROGRAM, ANY EXCESS LIMITS AS DETERMINED BY LENDER IN
ITS SOLE AND ABSOLUTE DISCRETION; AND (Z) 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
57
DEGREE OF SEISMIC ACTIVITY, WITH A PROBABLE MAXIMUM LOSS EXCEEDING TWENTY
PERCENT (20%), PROVIDED THAT THE INSURANCE PURSUANT TO CLAUSES (Y) AND (Z)
HEREOF SHALL BE ON TERMS CONSISTENT WITH THE COMPREHENSIVE ALL RISK INSURANCE
POLICY REQUIRED UNDER THIS SUBSECTION (I).
(II)
BUSINESS INCOME INSURANCE (A) WITH LOSS PAYABLE
TO LENDER; (B) COVERING ALL RISKS REQUIRED TO BE COVERED BY THE INSURANCE
PROVIDED FOR IN SUBSECTION (I) ABOVE; (C) IN AN AMOUNT EQUAL TO ONE HUNDRED
PERCENT (100%) OF THE PROJECTED GROSS REVENUES FROM THE OPERATION OF THE
PROPERTY (AS REDUCED TO REFLECT EXPENSES NOT INCURRED DURING A PERIOD OF
RESTORATION) FOR A PERIOD OF AT LEAST EIGHTEEN (18) MONTHS AFTER THE DATE OF THE
CASUALTY; AND (D) CONTAINING AN EXTENDED PERIOD OF INDEMNITY ENDORSEMENT WHICH
PROVIDES THAT AFTER THE PHYSICAL LOSS TO THE IMPROVEMENTS AND PERSONAL 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 EIGHTEEN (18) 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.
THE
AMOUNT OF SUCH BUSINESS INCOME INSURANCE SHALL BE DETERMINED PRIOR TO THE
CLOSING DATE AND AT LEAST ONCE EACH YEAR THEREAFTER BASED ON BORROWER'S
REASONABLE ESTIMATE OF THE GROSS INCOME FROM THE PROPERTY FOR THE SUCCEEDING
EIGHTEEN (18) MONTH PERIOD.
ALL PROCEEDS PAYABLE TO LENDER PURSUANT TO THIS
SUBSECTION SHALL BE HELD BY LENDER AND SHALL BE APPLIED TO THE OBLIGATIONS
SECURED BY THE LOAN DOCUMENTS FROM TIME TO TIME DUE AND PAYABLE HEREUNDER AND
UNDER THE NOTE; PROVIDED, HOWEVER, THAT NOTHING HEREIN CONTAINED SHALL BE DEEMED
TO RELIEVE BORROWER OF ITS OBLIGATIONS TO PAY THE OBLIGATIONS SECURED BY THE
LOAN DOCUMENTS ON THE RESPECTIVE DATES OF PAYMENT PROVIDED