200003557 - Laserfiche WebLink

Browse

200003557 notwithstanding, Borrower shall not be required to make any payments into the Escrow Fund for payment of Taxes with respect to that portion of the Property which is subject to the K Mart Lease until there shall occur a default by the tenant under the K Mart Lease in its obligation to pay such Taxes when due. From and after any such default by the tenant under the K Mart Lease, and following notice from Lender, Borrower shall make monthly deposits into the Escrow Fund set forth above for the Taxes with respect to that portion of the Property subject to the K Mart Lease. Section 3.6 Insurance. (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the following coverages: (i) Property Insurance. Insurance with respect to the Improvements and building equipment insuring against any peril included within the classification "All Risks of Physical Loss" in amounts at all times sufficient to prevent Lender from becoming a co-insurer within the terms of the applicable policies and under applicable law, but in any event such insurance shall be maintained in an amount equal to the full insurable value of the Improvements and building equipment, the term "full insurable value" to mean the actual replacement cost of the Improvements and building equipment (without taking into account any depreciation and exclusive of excavations, footings and foundations, landscaping and paving) determined annually by an insurer, a recognized independent insurance broker or an independent appraiser selected and paid by Borrower, but in no event less than the coverage required pursuant to the terms of any Lease. Notwithstanding the foregoing, so long as the K Mart Lease is in effect, the term "full insurable value" shall mean eighty percent (80 %) of the replacement value of the Improvements, determined annually by an insurer, a recognized independent insurance broker or an independent appraiser selected and paid by Borrower, but in no event less than the coverage required pursuant to the terms of the K Mart Lease. Absent such annual adjustment, each policy shall contain inflation guard coverage insuring that the policy limit will be increased over time to reflect the effect of inflation. Borrower also shall maintain insurance against loss or damage to such furniture, furnishings, fixtures, equipment and other items (whether personalty or fixtures) included in the Property and owned by Borrower from time to time, to the extent applicable, in the amount of the cost of replacing the same, with inflation guard coverage to reflect the effect of inflation, or annual valuation. 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. The maximum deductible shall be the lesser of $10,000.00 or 1 % of the face amount of the policy. Notwithstanding the foregoing provisions of contained in this Section 3.6(a)(i), the Lender acknowledges that the tenant under the K Mart Lease may self- insure the obligations set forth in this Section 3.6(a)(i) in accordance with the terms of the K Mart Lease. (ii) Liability Insurance. Commercial general liability insurance, including personal injury, bodily injury, death and property damage liability, insurance against any and all claims, including all legal liability to the extent insurable and imposed upon Lender and all court costs and fees and expenses of legal counsel, arising out of or connected with the possession, use, leasing, operation, maintenance or condition of the Property, in such amounts as are generally available at commercially reasonable premiums and are generally required by institutional lenders for properties comparable to the Property, but in no event for a combined single limit of less than $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate (inclusive of umbrella coverage). During any construction of the Property, Borrower's general contractor for such construction also shall provide the insurance required in this subsection (a)(ii). 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. (iii) Workers' Compensation Insurance. Statutory workers' compensation insurance with respect to any work on or about the Property covering all persons subject to the workers' compensation laws of the state in which the Property is located. ATLANTA4181845.4 GMACCM (SLP) — DOT (8/98) 7 Grand Isle, Nebraska