Common use of Policies Required Clause in Contracts

Policies Required. While any obligation of Borrower or Guarantor under any Loan Document remains outstanding, Borrower shall maintain at Borrower’s sole expense, with insurers reasonably approved by Bondowner Representative, the policies of insurance, in form and substance reasonably satisfactory to Bondowner Representative, identified in Exhibit “C” attached hereto. In addition to the foregoing, Borrower shall also maintain at its sole expense with insurers approved by Bondowner Representative all other insurance reasonably required by Bondowner Representative from time to time for commercial construction loans made for residential rental properties. All such insurance shall meet all of the requirements set forth in Exhibit “C” and shall provide that it may not be cancelled or materially modified without thirty (30) days’ prior written notice to Bondowner Representative. No such insurance shall include deductible amounts to which Bondowner Representative has not previously consented in writing. Certificates of insurance for the required policies (and/or original policies, if required by Bondowner Representative) shall be delivered to Bondowner Representative annually and otherwise from time to time within ten (10) days after demand therefor. All policies insuring against damage to the Project shall contain an agreed value clause sufficient to eliminate any risk of co-insurance. No less than thirty (30) days prior to the expiration of each policy, Borrower shall deliver to Bondowner Representative evidence of renewal or replacement of such policy reasonably satisfactory to Bondowner Representative. Without limiting the generality of the language of this Section 11.1, the specific insurance requirements of Bondowner Representative are set forth in Exhibit “C” attached hereto. In the event of any inconsistency between the requirements set forth herein and the insurance requirements set forth in Exhibit C attached hereto, the requirements set forth in Exhibit “C” shall control to the extent of such inconsistency.

Policies Required. While any obligation Obligation of Borrower or Guarantor under any Loan Document remains outstanding, Borrower shall procure and maintain at Borrower’s sole expense, with insurers reasonably approved by Bondowner Representative, the or shall cause to be procured and maintained continuously in effect policies of insurance, insurance as set forth on Exhibit C in form and substance reasonably amounts and issued by companies, associations or organizations licensed to do business in the state the Property is located, satisfactory to Bondowner RepresentativeLender covering such casualties, identified risks, perils, liabilities and other hazards required by Lender. All original policies, or certificates thereof, and endorsements and renewals thereof shall be delivered to and retained by Lender unless Lender waives this requirement in Exhibit “C” attached heretowriting. In addition to All policies shall expressly protect or recognize Lender’s interest as required by Lender. Without limiting the generality of the foregoing, Borrower shall also maintain at its sole expense with insurers approved by Bondowner Representative all other provide or cause to be provided the following types of insurance coverage: (a) (i) property insurance on a replacement cost basis as set forth on Exhibit C, including flood, hurricane and sinkhole coverages in an amount equal to the replacement cost of the Improvements and rent loss, and (ii) Comprehensive General Liability Insurance as set forth on Exhibit C; and (b) such additional insurance as may be reasonably required by Bondowner Representative Lender from time to time for commercial construction loans made for residential rental properties. All such insurance shall meet all of in the requirements set forth in Exhibit “C” event that the Property is exposed to hazards and shall provide that it may not be cancelled or materially modified without thirty (30) days’ prior written notice to Bondowner Representative. No such insurance shall include deductible amounts risks with respect to which Bondowner Representative has not previously consented in writingLender deems the existing insurance inadequate to properly protect its interests. Certificates Borrower shall furnish Lender with a certified copy of an original or a certificate of insurance for the required of all policies (and/or original policies, if required by Bondowner Representative) shall be delivered to Bondowner Representative annually and otherwise from time to time within ten (10) days after demand thereforof insurance required. All policies insuring against damage to or certificates, as the Project case may be, of insurance shall set forth the coverage, the limits of liability, the name of the carrier, the policy number, the Best’s Rating of the carrier and the period of coverage. In addition, all policies of insurance required under the terms hereof shall contain an agreed value clause sufficient to eliminate endorsement or agreement by the insurer that any risk loss shall be payable in accordance with the terms of co-insurancesuch policy notwithstanding any act or negligence of Borrower or any party holding under Borrower which might otherwise result in a forfeiture of said insurance and the further agreement of the insurer waiving all rights of setoff, counterclaim or deductions against Borrower. No less than thirty At least fifteen (3015) days prior to the expiration of each required policy, Borrower shall deliver to Bondowner Representative Lender evidence of the renewal or replacement of such policy reasonably satisfactory to Bondowner Representativepolicy, continuing such insurance in the form as required by this Agreement. Without limiting the generality of the language of this Section 11.1, the specific insurance requirements of Bondowner Representative are set forth in Exhibit “C” attached hereto. In the event of All such policies shall contain a provision that notwithstanding any inconsistency contrary agreement between the requirements set forth herein Borrower and the applicable insurance requirements set forth company, such policies will not be canceled, allowed to lapse without TERM LOAN AGREEMENT - Page 35 renewal, surrendered or amended (which provision shall include any reduction in Exhibit C attached hereto, the requirements set forth in Exhibit “C” shall control scope or limits of coverage) without at least 30 days’ prior written notice to the extent of such inconsistencyLender.

Policies Required. While any obligation of Borrower or Guarantor Developer ----------------- under any Loan Document remains outstanding, Borrower Developer shall maintain at Borrower’s sole expenseprocure out of the Approved Budget and maintain, with insurers reasonably approved by Bondowner Representativeor shall cause to be procured and maintained, the continuously in effect policies of insurance, insurance in form and substance reasonably amounts and issued by companies, associations or organizations satisfactory to Bondowner RepresentativeOwner covering such casualties, identified in Exhibit “C” attached hereto. In addition to the foregoingrisk, Borrower shall also maintain at its sole expense with insurers approved by Bondowner Representative all perils, liabilities and other insurance hazards reasonably required by Bondowner Representative from time to time for commercial construction loans made for residential rental propertiesOwner. All such insurance shall meet all of the requirements set forth in Exhibit “C” and shall provide that it may not be cancelled or materially modified without thirty (30) days’ prior written notice to Bondowner Representative. No such insurance shall include deductible amounts to which Bondowner Representative has not previously consented in writing. Certificates of insurance for the required policies (and/or original policies, if required by Bondowner Representative) or certificates thereof, and endorsements and renewals thereof shall be delivered to Bondowner Representative annually and otherwise from time to time within ten (10) days after demand thereforretained by Owner unless Owner waives this requirement in writing. All policies insuring against shall expressly protect or recognize Owner's interest as required by Owner. Without limiting the generality of the foregoing, Developer shall provide or cause to be provided the following types of insurance coverage: (a) During construction of the Project or any subsequent renovation of the Improvements: (i) Builder's Risk Insurance on an "all risks" basis, including Stored Materials and materials while in transit, naming Owner as loss payee in the loss payable clause, (ii) Broad Form Public Liability Insurance in a minimum amount of $5,000,000.00 per occurrence in respect of bodily injury and death and $10,000,000.00 for property damage carried by Developer and by the Contractor naming Owner as a certificate holder, (iii) Workers' Compensation and Employer's Liability Insurance naming Owner as a certificate holder, (iv) Flood Insurance, unless Developer provides Owner with a letter from the Surveyor certifying that the Property is not within a one hundred year flood plain or zone, and (v) Hurricane Insurance in a minimum amount after deductible equal to the Maximum Project Amount. (b) After the Project has been completed and until satisfaction of all obligations under this Agreement (i) property insurance on an "all risks" cost basis in an amount equal to the replacement cost of the physical value of the Improvements but in no event less than the face amount of the Maximum Project Amount, naming Owner as an additional insured and loss payee; (ii) Broad Form Public Liability Insurance in a minimum amount of $5,000,000.00 naming Owner as a certificate holder if requested by Owner; (iii) Worker's Compensation and Employer's Liability Insurance naming Owner as a certificate holder if requested by Owner; (iv) Flood Insurance, unless Developer provides Owner with a letter from Developer's engineer certifying that the Property is not located within a one hundred year floor plain or zone; (v) Hurricane Insurance in a minimum amount after deductible equal to the replacement cost of the physical value of the Improvements but in no event less than the Maximum Project Amount; and (vi) Rent loss insurance against loss of income by reason of any hazard covered under the Insurance required under this subparagraph (b) in an amount sufficient to avoid any coinsurance penalty, but in any event for not less than one year's gross receipts from all sources of income from the Project. (c) In the event that Owner shall at any time reasonably and in good faith believe the limits of the personal injury, property damage or general public liability insurance then carried to be insufficient, the parties shall endeavor to agree on the proper and reasonable limits for such insurance to be carried and such insurance shall thereafter be carried with the limits thus agreed on until further change pursuant to the provisions of this Section. If the parties shall be unable to agree thereon, the proper and reasonable limits for such insurance shall be determined by an impartial third party selected by the parties the costs of which shall be divided equally between the parties. Such redeterminations, whether made by the parties or by arbitration, shall be made no more frequently than every year. .1. All policies or certificates, as the case may be, of insurance shall set forth the coverage, the limits of liability, the name of the carrier, the policy number and the period of coverage. In addition, all policies of insurance required under the terms hereof shall contain an agreed value clause sufficient to eliminate endorsement or agreement by the insurer that any risk loss shall be payable in accordance with the terms of co-insurancesuch policy notwithstanding any act or negligence of Developer or any party holding under Developer which might otherwise result in a forfeiture of said insurance and the further agreement of the insurer waiving all rights of setoff, counterclaim or reductions against Developer. No less than thirty (30) At least ten days prior to the expiration of each required policy, Borrower Developer shall deliver to Bondowner Representative Owner evidence of the renewal or replacement of such policy reasonably satisfactory policy, continuing such insurance in the form as required by this Agreement. All such policies shall contain a provision that they will not be cancelled, allowed to Bondowner Representative. Without limiting lapse without renewal, surrendered or amended (which provision shall include any reduction in the generality scope or limits of the language of this Section 11.1, the specific insurance requirements of Bondowner Representative are set forth coverage) without at least 30 days' prior written notice to Owner or ten days' prior written notice in Exhibit “C” attached hereto. In the event of non-payment of any inconsistency between the requirements set forth herein and the insurance requirements set forth in Exhibit C attached hereto, the requirements set forth in Exhibit “C” shall control to the extent of such inconsistencypremiums due.

Policies Required. While any obligation of the Borrower or any ----------------- Guarantor under any Loan Credit Document remains outstanding, the Borrower shall procure and maintain at Borrower’s sole expense, with insurers reasonably approved by Bondowner Representative, the or shall cause to be procured and maintained continuously in effect policies of insurance, insurance in form and substance reasonably amounts and issued by companies, associations or organizations licensed to do business in the states the Hotel Properties are located, with a Best's Rating of no less than A, XI and otherwise satisfactory to Bondowner Representativethe Agents covering such casualties, identified in Exhibit “C” attached hereto. In addition to the foregoingrisks, Borrower shall also maintain at its sole expense with insurers approved by Bondowner Representative all perils, liabilities and other insurance reasonably hazards required by Bondowner Representative from time to time for commercial construction loans made for residential rental propertiesAgents. All such insurance shall meet all of the requirements set forth in Exhibit “C” and shall provide that it may not be cancelled or materially modified without thirty (30) days’ prior written notice to Bondowner Representative. No such insurance shall include deductible amounts to which Bondowner Representative has not previously consented in writing. Certificates of insurance for the required policies (and/or original policies, if required by Bondowner Representative) or certificates thereof, and endorsements and renewals thereof shall be delivered to Bondowner Representative annually and otherwise from time to time within ten (10) days after demand thereforretained by the Administrative Agent unless the Administrative Agent waives this requirement in writing. All policies insuring against damage to shall expressly protect or recognize Administrative Agent's interest as required by the Project shall contain an agreed value clause sufficient to eliminate any risk of co-insurance. No less than thirty (30) days prior to the expiration of each policy, Borrower shall deliver to Bondowner Representative evidence of renewal or replacement of such policy reasonably satisfactory to Bondowner RepresentativeAdministrative Agent. Without limiting the generality of the language of this Section 11.1foregoing, the specific Borrower shall provide or cause to be provided the following types of insurance requirements coverage: (a) until repayment of Bondowner Representative are set forth the Notes and satisfaction of all obligations under the Credit Documents: (i) property insurance on an "all risks" full replacement cost basis without deduction for depreciation (or fire, extended coverage and difference in Exhibit “C” attached hereto. In the event of any inconsistency between the requirements set forth herein conditions basis), including flood, earthquake and the insurance requirements set forth sinkhole coverages in Exhibit C attached hereto, the requirements set forth in Exhibit “C” shall control an amount equal to the extent replacement cost of the Improvements (except for earthquake insurance which for each Eligible Property and Permitted Non-Eligible Property shall be in an amount which is equal to or greater than the greater of (A) 50% of the Real Estate Value of such inconsistency.Hotel Property or (b) the Allocated Debt Amount for such Hotel Property), naming the Administrative Agent in its capacity as administrative agent, as mortgagee under a standard form mortgagee clause; (ii) Comprehensive General Liability Insurance (including contractual liability, owners and contractors protective coverages, products & completed operations, personal & advertising injury liability, fire damage legal liability and alienated premises coverage) and Comprehensive Auto Liability Insurance in a minimum amount of $50,000,000 each occurrence; (iii) Statutory Workers' Compensation and Employer's Liability Insurance in the minimum amounts of $1,000,000 each accident, $1,000,000 each employee - disease, $1,000,000 policy limit - disease; and