PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

Home Browse Search

Mortgage and the Subordinate Mortgage such real property so sold, pledged or disposed of, but only upon receipt by the Trustee of certain documents and opinions described in the Loan Agreement. (b) Subject to the terms of the Ground Lease, the Borrower may at any time or times grant to itself or others easements, licenses, rights of way and other rights or privileges in the nature of easements with respect to the Land,free from the lien of the Mortgage and the Subordinate Mortgage, or the Borrower may release existing easements, licenses, rights of way and other rights or privileges with or without consideration, and the Trustee will execute and deliver any instrument necessary or appropriate to confirm and grant or release any such easement, license, right of way or privilege;provided,however,that prior to any such grant or release, there shall have been supplied to the Trustee a Certificate ofthe Authorized Borrower Representative to the effect (i) that such grant or release is not detrimental to the proper operation of the Project Facilities, and (ii) that such grant or release will not impair the operating unity or the efficiency of the Project Facilities on such Land or materially and adversely affect the character thereof. Insurance The Borrower shall maintain,or cause to be maintained,at its cost and expense, insurance as follows: (a) Insurance against loss and/or damage to the Mortgaged Property under a policy or policies covering such risks as are ordinarily insured against by similar businesses, including (without limiting the generality of the foregoing) fire and extended coverage in an amount not less than 100% of the full insurable replacement value of the Project Facilities, but any such policy may have a deductible amount of not more than$10,000. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the Trustee (based on a report of an Independent Consultant). The term "full insurable replacement value" shall mean the actual replacement cost of the Project Facilities (excluding foundation and excavation costs and costs of underground flues,pipes,drains and other uninsurable items) and equipment, and shall be determined or redetermined on the fifth anniversary of the Loan Agreement and every fifth anniversary thereafter,by an Insurance Consultant. All policies evidencing insurance required by this subparagraph(a)with respect to the Project Facilities shall be carried in the names of the Borrower and the Trustee as their respective interests may appear and shall contain standard mortgage clauses which provide for Net Proceeds of insurance resulting from claims per casualty thereunder to the Project Facilities which are less than $250,000 for loss or damage covered thereby to be made payable directly to the Borrower, and Net Proceeds from such claims which are equal to or in excess of$250,000 to be made payable directly to the Trustee. The Net Proceeds of