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200507874
<br />insurable hazards, including, but not limited to, malicious mischief, vandalism, sinkhole and mine
<br />subsidence, mold, spores and fungus, windstorm and/or earthquake, due regard to be given to the size and
<br />type of the Premises, Improvements, Fixtures and Equipment and their location, construction and use.
<br />(b) If Borrower is a partnership or limited liability company, Borrower shall cause the General
<br />Partners to maintain fidelity insurance in an amount equal to or greater than the annual Operating Income of the
<br />Property for the six (6) month period immediately preceding the date on which the premium for such insurance is
<br />due and payable.
<br />(c) Borrower shall cause any Manager of the Property to maintain fidelity insurance in an amount
<br />equal to or greater than the annual Operating Income of the Property for the six (6) month period immediately
<br />preceding the date on which the premium for such insurance is due and payable or such lesser amount as Lender
<br />shall approve.
<br />Section 3.02. Policy Terms. (a) All insurance required by this Article III shall be in the form (other than
<br />with respect to Sections 3.01(a)(vi) and (vii) above when insurance in those two sub - sections is placed with a
<br />governmental agency or instrumentality on such agency's forms) and amount and with deductibles as, from time to
<br />time, shall be reasonably acceptable to Lender, under valid and enforceable policies issued by financially
<br />responsible insurers authorized to do business in the State where the Property is located, with a general
<br />policyholder's service rating of not less than A and a financial rating of not less than VIII as rated in the most
<br />currently available Best's Insurance Reports (or the equivalent, if such rating system shall hereafter be altered or
<br />replaced) and shall have a claims paying ability rating and/or financial strength rating, as applicable, of not less than
<br />"A" (or its equivalent) or such lower claims paying ability rating and/or financial strength rating, as applicable, as
<br />Lender shall, in its sole and absolute discretion, consent to, from a Rating Agency (one of which after a
<br />Securitization in which Standard & Poor's rates any securities issued in connection with such Securitization, shall be
<br />Standard & Poor's) or by a syndicate of insurers through which at least 75% of the coverage (if there are four (4) or
<br />fewer members of such syndicate) or at least 60% of the coverage (if there are five (5) or more members of the
<br />syndicate) is with carriers having claims- paying ability or financial strength ratings, as applicable, of "A" (or its
<br />equivalent) from the Ratings Agencies, provided that all members of the syndicate shall have claims- paying ability
<br />ratings and/or financial strength ratings, as applicable, of not less than "BBB" (or its equivalent) from the Ratings
<br />Agencies. Lender acknowledges that so long as the claims paying ability rating and/or financial strength rating, as
<br />applicable, of Commonwealth is "BBB" (or its equivalent), Commonwealth shall be an acceptable insurer until the
<br />end of the current policy term. Originals or certified copies of all insurance policies shall be delivered to and held
<br />by Lender. All such policies (except policies for worker's compensation) shall name Lender, its successors and/or
<br />assigns as an additional named insured, shall provide for loss payable to Lender, its successors and/or assigns and
<br />shall contain (or have attached): (i) standard "non- contributory mortgagee" endorsement or its equivalent relating,
<br />inter alia, to recovery by Lender notwithstanding the negligent or willful acts or omissions of Borrower; (ii) a waiver
<br />of subrogation endorsement as to Leader; (iii) an endorsement indicating that neither Lender nor Borrower shall be
<br />or be deemed to be a co- insurer with respect to any casualty risk insured by such policies and shall provide for a
<br />deductible per loss of an amount not more than the lesser of (x) that which is customarily maintained by owners of
<br />similar properties similarly situated and (y) five percent (5 %) of the Net Operating Income, and (iv) a provision that
<br />such policies shall not be canceled, terminated, denied renewal or amended, including, without limitation, any
<br />amendment reducing the scope or limits of coverage, without at least thirty (30) days' prior written notice to Lender
<br />in each instance. Not less than thirty (30) days prior to the expiration dates of the insurance policies obtained
<br />pursuant to this Security Instrument, originals or certified copies of renewals of such policies (or certificates
<br />evidencing such renewals) bearing notations evidencing the payment of premiums or accompanied by other
<br />reasonable evidence of such payment (which premiums shall not be paid by Borrower through or by any financing
<br />arrangement which would entitle an insurer to terminate a policy) shall be delivered by Borrower to Lender.
<br />Borrower shall not carry separate insurance, concurrent in kind or form or contributing in the event of loss, with any
<br />insurance required under this Article III.
<br />(b) If Borrower fails to maintain and deliver to Lender the original policies or certificates of insurance
<br />required by this Security Instrument, or if there are insufficient funds in the Basic Carrying Costs Sub - Account to
<br />pay the premiums for same, Lender may, at its option, procure such insurance, and Borrower shall pay, or as the
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