THIS AGREEMENT CONTINUES IN EFFECT THE FOLLOWING INSURANCE:
(A)
"ALL-RISK" COVERAGE INSURANCE AGAINST LOSS
OR DAMAGE TO THE MORTGAGED PROPERTY FROM ALL-RISK PERILS.
THE AMOUNT OF SUCH
INSURANCE SHALL BE NOT LESS THAN ONE HUNDRED PERCENT (100%) OF THE FULL
REPLACEMENT COST OF THE IMPROVEMENTS, FURNITURE, FURNISHINGS, FIXTURES,
EQUIPMENT AND OTHER ITEMS (WHETHER PERSONALTY OR FIXTURES) INCLUDED IN THE
MORTGAGED PROPERTY AND OWNED BY BORROWER FROM TIME TO TIME, WITHOUT REDUCTION
FOR DEPRECIATION.
THE DETERMINATION OF THE REPLACEMENT COST AMOUNT SHALL BE
ADJUSTED ANNUALLY TO COMPLY WITH THE REQUIREMENTS OF THE INSURER ISSUING SUCH
COVERAGE OR, AT LENDER'S ELECTION, BY REFERENCE TO SUCH INDEXES, APPRAISALS OR
INFORMATION AS LENDER DETERMINES IN ITS REASONABLE DISCRETION.
FULL REPLACEMENT
COST, AS USED HEREIN, MEANS, WITH RESPECT TO THE IMPROVEMENTS, THE COST OF
REPLACING THE IMPROVEMENTS WITHOUT REGARD TO DEDUCTION FOR DEPRECIATION,
EXCLUSIVE OF THE COST OF EXCAVATIONS, FOUNDATIONS AND FOOTINGS BELOW THE LOWEST
BASEMENT FLOOR, AND MEANS, WITH RESPECT TO SUCH FURNITURE, FURNISHINGS,
FIXTURES, EQUIPMENT AND OTHER ITEMS, THE COST OF REPLACING THE SAME.
EACH
POLICY OR POLICIES SHALL CONTAIN A REPLACEMENT COST ENDORSEMENT AND EITHER AN
AGREED AMOUNT ENDORSEMENT (TO AVOID THE OPERATION OF ANY CO-INSURANCE
PROVISIONS) OR A WAIVER OF ANY CO-INSURANCE PROVISIONS, ALL SUBJECT TO LENDER'S
APPROVAL.
(B)
COMMERCIAL GENERAL LIABILITY INSURANCE FOR
PERSONAL INJURY, BODILY INJURY, DEATH AND PROPERTY DAMAGE LIABILITY IN AMOUNTS
NOT LESS THAN $1,000,000.00 PER OCCURRENCE, $2,000,000.00 IN AGGREGATE (AND
AFTER THE COMMENCEMENT OF CONSTRUCTION OF IMPROVEMENTS, EXCESS UMBRELLA COVERAGE
IN AMOUNT NOT LESS THAN $5,000,000.00) OR SUCH LESSER AMOUNT AS LENDER IN
LENDER'S SOLE DISCRETION MAY ACCEPT, FOR BODILY INJURY, PERSONAL INJURY AND
PROPERTY DAMAGE.
LENDER HEREBY RETAINS THE RIGHT TO PERIODICALLY REVIEW THE
AMOUNT OF SAID LIABILITY INSURANCE BEING MAINTAINED BY BORROWER AND TO REQUIRE
AN INCREASE IN THE AMOUNT OF SAID LIABILITY INSURANCE SHOULD LENDER DEEM AN
INCREASE TO BE REASONABLY PRUDENT UNDER THEN EXISTING CIRCUMSTANCES.
(C)
INSURANCE COVERING THE MAJOR COMPONENTS OF
THE CENTRAL HEATING, AIR CONDITIONING AND VENTILATING SYSTEMS, BOILERS, OTHER
PRESSURE VESSELS, HIGH PRESSURE PIPING AND MACHINERY, ELEVATORS AND ESCALATORS,
IF ANY, AND OTHER SIMILAR EQUIPMENT INSTALLED IN THE IMPROVEMENTS, IN AN AMOUNT
EQUAL TO ONE HUNDRED PERCENT (100%) OF THE FULL REPLACEMENT COST OF THE
IMPROVEMENTS WHICH POLICIES SHALL INSURE AGAINST PHYSICAL DAMAGE TO AND LOSS OF
OCCUPANCY AND USE OF THE IMPROVEMENTS ARISING OUT OF AN ACCIDENT OR BREAKDOWN
COVERED THEREUNDER.
20
(D)
IF THE LAND OR ANY PART THEREOF IS
IDENTIFIED BY THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT AS BEING SITUATED
IN AN AREA NOW OR SUBSEQUENTLY DESIGNATED AS HAVING SPECIAL FLOOD HAZARDS
(INCLUDING, WITHOUT LIMITATION, THOSE AREAS DESIGNATED AS ZONE A OR ZONE V),
FLOOD INSURANCE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT (100%) OF THE
REPLACEMENT COST OF THE IMPROVEMENTS OR THE MAXIMUM AMOUNT OF FLOOD INSURANCE
AVAILABLE, WHICHEVER IS THE LESSER.
(E)
DURING THE PERIOD OF ANY CONSTRUCTION ON
THE LAND OR RENOVATION OR ALTERATION OF THE IMPROVEMENTS, INCLUDING TENANT
IMPROVEMENTS, A SO-CALLED "BUILDER'S ALL-RISK COMPLETED VALUE" OR "COURSE OF
CONSTRUCTION"