Common use of Employee Dishonesty Policy and Errors and Omissions Insurance Clause in Contracts

Employee Dishonesty Policy and Errors and Omissions Insurance. The Servicer, at its expense, shall maintain in effect during the term of this Servicing Agreement (i) an Employee Dishonesty Policy and (ii) an errors and omissions insurance policy, in each case with such coverage as shall then be available on commercially reasonable terms. The Employee Dishonesty Policy shall protect and insure against losses, including forgery, theft, embezzlement and fraud of the directors, officers and employees of the Servicer, and shall contain an endorsement listing the Bank and the Issuer as joint loss payees. The Servicer shall be deemed to have complied with the terms of this provision with respect to an Employee Dishonesty Policy if one of its Affiliates has such employee dishonesty coverage and, by the terms of such Employee Dishonesty Policy, the coverage thereunder extends to the Servicer. The errors and omissions insurance policy shall insure against loss arising from errors, omissions or negligent acts of the Servicer solely with respect to its services hereunder, have a policy limit of not less than $1 million, and name the Bank and the Issuer as additional insureds, but solely with respect to their vicarious liability for work performed by the Servicer, affording coverage for all directors, officers and employees of the Servicer. No provision of this Section 2.03 requiring such Employee Dishonesty Policy and errors and omissions insurance (nor the provision of such insurance) shall diminish or relieve the Servicer from its duties and obligations as set forth in this Agreement. The Servicer shall promptly report any changes of which it is actually aware that may occur in the Employee Dishonesty Policy or errors and omissions insurance policy, including any information that the provider thereof has ceased to be a Qualified Insurer, and shall furnish to the Issuer, the Owner and the Bank on request, copies of all binders and policies or certificates evidencing that such bonds and insurance policies are in full force and effect. The Servicer shall promptly report to the Issuer, the Owner and the Bank all cases of embezzlement or fraud, or irregularities of operation, suspected or otherwise, whether or not such events involve funds relating to the Tax Liens. The total losses, regardless of whether claims are filed with the applicable insurer or surety, shall be disclosed in such reports together with the amount of such losses covered by insurance. If a bond or insurance claim report is filed with any of the Servicer’s bonding companies or insurers, a copy of such report shall be promptly furnished to the Issuer, the Owner and the Bank.

Employee Dishonesty Policy and Errors and Omissions Insurance. The Servicer, at its expense, shall maintain in effect during the term of this Servicing Agreement (i) an Employee Dishonesty Policy and (ii) an errors and omissions insurance policy, in each case with such coverage as shall then be available on commercially reasonable terms. The Employee Dishonesty Policy shall protect and insure against losses, including forgery, theft, embezzlement and fraud of the directors, officers and employees of the Servicer, and shall contain an endorsement listing the Bank Indenture Trustee and the Issuer as joint loss payees. The Servicer shall be deemed to have complied with the terms of this provision with respect to an Employee Dishonesty Policy if one of its Affiliates has such employee dishonesty coverage and, by the terms of such Employee Dishonesty Policy, the coverage thereunder extends to the Servicer. The errors and omissions insurance policy shall insure against loss arising from errors, omissions or negligent acts of the Servicer solely with respect to its services hereunder, have a policy limit of not less than $1 million, and name the Bank Indenture Trustee and the Issuer as additional insureds, but solely with respect to their vicarious liability for work performed by the Servicer, affording coverage for all directors, officers and employees of the Servicer. No provision of this Section 2.03 requiring such Employee Dishonesty Policy and errors and omissions insurance (nor the provision of such insurance) shall diminish or relieve the Servicer from its duties and obligations as set forth in this Agreement. The Servicer shall promptly report any changes of which it is actually aware that may occur in the Employee Dishonesty Policy or errors and omissions insurance policy, including any information that the provider thereof has ceased to be a Qualified Insurer, and shall furnish to the Issuer, the Owner and the Bank Indenture Trustee on request, copies of all binders and policies or certificates evidencing that such bonds and insurance policies are in full force and effect. The Servicer shall promptly report to the Issuer, the Owner and the Bank Indenture Trustee all cases of embezzlement or fraud, or irregularities of operation, suspected or otherwise, whether or not such events involve funds relating to the Tax Liens. The total losses, regardless of whether claims are filed with the applicable insurer or surety, shall be disclosed in such reports together with the amount of such losses covered by insurance. If a bond or insurance claim report is filed with any of the Servicer’s bonding companies or insurers, a copy of such report shall be promptly furnished to the Issuer, the Owner and the BankIndenture Trustee.