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(1) Borrower will give prompt written notice to MBI of any process or action taken <br /> or pending whereby a third party is asserting a material claim against Borrower or any of its <br /> assets. <br /> (m) Borrower will pay when due all costs, expenses, fees, and other charges incurred <br /> in connection with the acquisition of the Real Estate, the construction or rehabilitation of the <br /> Improvements,the purchase and installation of the Personal Property,the operation of the Project, <br /> and any other items set forth on the Development Budget, except for claims contested in good <br /> faith by appropriate proceedings. <br /> (n) Borrower will maintain all of Borrower's depository accounts with MBI, <br /> including but not limited to an account for the receipt of advancements of the Loan. <br /> (o) Borrower will maintain the following insurance and, upon request by MBI, <br /> furnish to MBI evidence of such insurance coverage and payment of premiums therefore: <br /> (i) Commercial general liability insurance against claims for personal <br /> injury, bodily injury, death or property damage occurring upon, in or about the Project, <br /> such insurance (A)to be on the so-called "occurrence" form with an occurrence limit of <br /> not less than $1,000,000 and an aggregate limit of not less than $3,000,000; (B)to <br /> continue at not less than the aforesaid limit until required to be changed by MBI by <br /> reason of changed economic conditions making such protection inadequate or changed <br /> due to changes in the standard practice of lenders in the business of making loans secured <br /> by collateral similar to the Project; and (C)to cover at least the following hazards: <br /> (1)premises and operations; (2)products and completed operations on an "if any" basis; <br /> (3)independent contractors; and (4)blanket contractual liability for all legal contracts. <br /> All policies shall name MBI as an additional insured. <br /> (ii) During the construction or rehabilitation of the Improvements and until <br /> such time as the construction or rehabilitation of the Improvements has been fully <br /> completed, Builder's Risk "All Risk" insurance in such amount as MBI shall require but <br /> in no event less than one hundred percent (100%) of the replacement cost value of the <br /> completed Improvements and one hundred (100%) percent of the replacement cost value <br /> of all tenant improvements. Such policy shall be written on a Builder's Risk Completed <br /> Value Form(100%non-reporting) or its equivalent and shall include coverage for loss by <br /> collapse, theft, flood, earthquake, transit coverage and water damage, with standard non- <br /> contributing mortgagee clauses. Such insurance policy shall also include coverage for: <br /> (A) loss suffered with respect to materials, equipment, machinery, and supplies whether <br /> on-site, in transit, or stored off-site and with respect to temporary structures, hoists, <br /> sidewalks, retaining walls, and underground property; (B) soft costs, plans, <br /> specifications, blueprints and models in connection with any restoration following a <br /> casualty; (C) demolition and increased cost of construction or rehabilitation, including, <br /> without limitation, increased costs arising out of changes in applicable laws and codes; <br /> and (D) operation of building laws. All policies shall name MBI as a "mortgagee" on a <br /> non-contributing New York type of standard mortgagee clause or an equivalent <br /> endorsement satisfactory to MBI and as "Loss Payee" as respects rental/business income <br /> insurance. <br /> (iii) Upon the final completion of the Improvements and continuing <br /> thereafter, comprehensive all risk insurance on the Project(A) in an amount equal to one <br /> hundred percent (100%) of the full replacement cost value of the Improvements, which <br /> Page 45 <br />