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~t}~'~u~0053
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<br />Perm - Orig. Common REA - Tel. Bank Mtg. 2/72
<br />Mortgagor conducts its operations, then its workmen's compensation policy-shall
<br />provide voluntary- compensation coverage to the same extent as though the Mort-
<br />gagor and such amplogaaa-were subject to such laws; and including occupational
<br />disease liability coverage, and "additional medical" coverage of not les~.ti,an
<br />$10,OOQ in States- where full medical coverage is not required by law; (3) public
<br />liability and property damage liability insurance, covering ownership liability,
<br />and. all operations of the'Mortgagor, With limits far bodily injury or death of
<br />not less than $100,000 for one person and $300,000 for each accident; and with
<br />limits for pragerty damage of not less than 550,000 fox each accident--and $100,000
<br />aggregate for the policy period; (4) liability insurance on all-motor-vehicles;
<br />trailers, semitrailers, and aircraft used in the conduct of the Mortgagor's
<br />husiness, whether owned, non-arced oz hired by the Morgagor, with bodily injury
<br />limits of not less than $100,000 for one person and $300,000 for each accident,
<br />and with property damage limits of $25,000 for each accident; in connection with
<br />aircraft liability, also passenger bodily injury limits of $100,000-per person..
<br />and $300,000 for easy accident; (5) comprehensive, or separate fire, theft and
<br />windstorm insurance covering loss of or damage to all awned motor vehicles,
<br />trailers, and aircraft of the Mortgagor, having a unit value in excess of $1,000,
<br />in as amount not less than the actual cash value of the property insured; and
<br />(6) fire and exteaded coverage insurance, designating the Government and the Bank
<br />as mortgagees in the policy, on earn building, each building and its contents,
<br />and materials, supplies, poles and crossarms, owned by the Mortgagor, having a
<br />value at any one location in excess of $5,000, or in excess of one percent of the
<br />total plant value, whichever is larger, and in an amount not less Chan 90 percent
<br />of the current cost to replace the property new, less actual depreciation.
<br />The Mortgagor will also, from time to t1me, increase or supplement the
<br />classes sad amounts of insurance specified above to the extent required to con-
<br />form to the accepted practice of the telephone industry for companies of the size
<br />and character of the Mortgagor. The Mortgagor will, upon request of the majo ~Cy
<br />REA noteholders or the majority Bank na~ehalders submit to the noteholder or note-
<br />holders designated in such request a schedule of its insurance in effect on the
<br />date specified in such request. if the Mortgagor shall at any time fail or refuse
<br />to take out or maintain insurance or to make changes in respect thereof upon appro-
<br />priate request by such noteholder or noteholders, such noteholder or noteholders
<br />may cake out such insurance on behalf and in the name of the Mortgagor, and the
<br />Mortgagor will pay the cost thereof.
<br />Cb} In the event of damage to or the destruction or lose
<br />of any portion of the ;iortgaged Property which shall be cave red by insurance,
<br />~mless the majority REA noteholders and the majority Bank noteholders shall other-
<br />wise agree, the Mortgagor shall replace or restore such damaged, destroyed or lost
<br />portion so that the Mortgaged Property shall be in substantially the same condition
<br />as it was in grior to such damage, destruction or loss, and shall apply the pro-
<br />ceeds of the insurance for that purpose. The Mortgagor shall replace the loss or
<br />shall commence such restoration promptly after such damage, destruction or loss
<br />shall have occurred and shall complete such reglacement or restoration as expedi-
<br />tiously as practicable, and shall pay ar cause to be paid out of the proceeds of
<br />such insurance all casts and expenses in connection therewith so that such replace-
<br />ment or restoration shall be so completed that the portion of the Mortgaged Property
<br />sa replaced or restored shall be free and clear of all mechanics' liens and other
<br />claims.
<br />(c) Sums recovered under any fidelity bond by the Mortgagor
<br />far a loss of funds advanced under the notes ar recovered by a Mortgagee for any
<br />lase-under such bond shall, unless otherwise directed by the Mortgagees, be
<br />applied'to the prepayment of the notes, ~o rata according to the unpaid principal
<br />amounts tltareof {such prepayments to 6e applied to such installments thereof as
<br />map-be designated by the respective noteholders at the time of any such prepayment},
<br />a; to coastruct or acquire facilities approved by the Mortgagees, which will become
<br />part-of the Mortgaged Property.
<br />{d} The foregoing insurance coverage shall be obtained by
<br />~E+ of bond and policy farms approved by regulatory authorities, including
<br />staailard REA end~sraemencs and riders used by the insurance industry co provide
<br />aovezage Ear RBA borrowers.
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