Common use of Insurance and Casualty Clause in Contracts

Insurance and Casualty. (a) Borrower will maintain insurance policies (including but not limited to general liability, automobile liability, workers compensation and other forms of coverage that are customarily carried by businesses involved in the real estate development and construction industry in the market area where the Property is located) of forms and in amounts that are acceptable to Lender, specifically including property coverage in the form customarily referred to as “builders risk” coverage on each Home until the Home is released from the Security Instrument. If any Home is completed or no longer eligible for builders risk coverage, Borrower will purchase and maintain property insurance coverage (fire and extended coverage) in a form and with coverage limits and deductibles that are acceptable to Lender in its sole discretion. Lender’s approval of Borrower’s insurance will not be a representation of the solvency of any insurer or the sufficiency of any amount of insurance. Borrower will deliver copies of the insurance policies or certificates evidencing the insurance coverage required by Lender to Lender from time to time upon request therefor by Lender. (b) If any Home or any part thereof is damaged or destroyed by flood, earthquake, wind, fire, or by other means, Borrower shall restore the Home promptly to its prior condition and provide whatever funds are necessary to complete such restoration. All insurance proceeds attributable to such damage or destruction shall be deposited with Lender or a depository institution designated by Lender or applied against the Loan (subject to being re-advanced if the Home is repaired or re-built). After any such damage or destruction Lender shall be under no obligation to continue making Advances or disbursements of insurance proceeds until the following shall have occurred: (i) if required by Lender, Borrower shall have provided to Lender for its approval a revised budget, plans and specifications and any appropriate amendments to the Construction Contract which address such rebuilding; and (ii) Borrower shall have deposited into Borrower’s Funds Account such additional funds as Lender, in its sole judgment, deems appropriate to assure completion of the Home in accordance with any such approved revised budget and plans.

Insurance and Casualty. Grantor will keep the Mortgaged Property insured against loss or damage by fire, explosion, windstorm, hail, flood (a) Borrower will maintain if the Mortgaged Property shall at any time be located in an identified "flood prone area" in which flood insurance has been made available pursuant to the Flood Disaster Protection Act of 1973), tornado and such other hazards as may be required by Noteholder by policies (including but not limited to general liabilityof fire, automobile liability, workers compensation extended coverage and other forms of coverage that are customarily carried by businesses involved insurance in the real estate development such company or companies, in such amounts, upon such terms and construction industry in the market area where the Property is located) of forms provisions, and in amounts that are with such endorsements, all as may be acceptable to Lender, specifically including property coverage in the form customarily referred to Noteholder. Grantor will also provide such other insurance as “builders risk” coverage on each Home until the Home is released from the Security Instrument. If any Home is completed or no longer eligible for builders risk coverage, Borrower will purchase and maintain property insurance coverage (fire and extended coverage) in a form and with coverage limits and deductibles that are acceptable to Lender in its sole discretion. Lender’s approval of Borrower’s insurance will not be a representation of the solvency of any insurer or the sufficiency of any amount of insurance. Borrower will deliver copies of the insurance policies or certificates evidencing the insurance coverage required by Lender to Lender Noteholder may from time to time require, in such companies, upon request therefor such terms and provisions, in such amounts, and with such endorsements, all as are approved by Lender. (b) If Noteholder. Grantor further agrees that Grantor will deliver to Noteholder the original policies evidencing such insurance and any Home or additional insurance which shall be taken out upon any part thereof of the Mortgaged Property and receipts evidencing the payment of all premiums, and will deliver certificates evidencing renewals of all such policies of insurance to Noteholder at least fifteen (15) days before any such insurance shall expire. Without limiting the discretion of Noteholder with respect to required endorsements to insurance policies, Grantor further agrees that all such policies shall provide that proceeds thereunder will be payable to Noteholder as its interest may appear pursuant and subject to a mortgage clause (without contribution) of standard form attached to or otherwise made a part of the applicable policy. In the event of foreclosure of this Mortgage, or other transfer of title to the Mortgaged Property in extinguishment in whole or in part of the Indebtedness, all right, title and interest of Grantor in and to such policies then in force concerning the Mortgaged Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Noteholder or other transferee in the event of such other transfer of title. In the event any of the Mortgaged Property covered by such insurance is destroyed or damaged or destroyed by flood, earthquake, wind, fire, explosion, windstorm, hail or by any other means, Borrower shall restore the Home promptly to its prior condition and provide whatever funds are necessary to complete such restoration. All casualty against which insurance proceeds attributable to such damage or destruction shall be deposited with Lender or a depository institution designated by Lender or applied against the Loan (subject to being re-advanced if the Home is repaired or re-built). After any such damage or destruction Lender shall be under no obligation to continue making Advances or disbursements of insurance proceeds until the following shall have occurred: been required hereunder, (i) Noteholder may, but shall not be obligated to, make proof of loss if required not made promptly by Lender, Borrower shall have provided to Lender for its approval a revised budget, plans and specifications and any appropriate amendments to the Construction Contract which address such rebuildingGrantor; and (ii) Borrower shall have deposited into Borrower’s Funds Account each insurance company concerned is hereby authorized and directed to make payment for such additional funds as Lender, in its sole judgment, deems appropriate loss directly to assure completion Noteholder instead of the Home in accordance with any such approved revised budget and plans.to Grantor; and

Insurance and Casualty. Throughout the Term, Tenant shall keep all Improvements (aother than Improvements consisting only of grading and other site work) Borrower and tangible Personal Property covered by insurance against damage or destruction by fire or other casualty in the amount of one hundred percent (100%) of the replacement value. The policy or policies under which such insurance is maintained shall include endorsements for contingent liability from operation of building laws and increased cost of construction and demolition costs which may be necessary to comply with building laws. Such insurance shall, except to the extent provided under a builder's risk policy maintained as required by subparagraph 6(c)(iii)b) above during the construction of any Construction Project, be provided under an all-risk property insurance policy (not excluding from coverage perils normally included within the definitions of extended coverage, vandalism and malicious mischief and flood, but not including earthquake coverage). Tenant will maintain be responsible for determining the amount of property insurance to be maintained, but such coverage will be on an agreed value basis to eliminate the effects of coinsurance. Such insurance shall be issued by an insurance company or companies rated by the A.M. Best Company of Oldwick, New Jersey as having a policyholder's rating of A or better and a reported financial information rating of X or better. Any deductible applicable to such insurance shall not exceed $1,000,000. Such insurance shall cover not only the value of Tenant's interest in the applicable Improvements and tangible Personal Property, but also the interest of Landlord, and such insurance shall include provisions that Landlord must be notified at least ten (10) days prior to any cancellation or reduction of insurance coverage. With this Lease Tenant shall deliver to Landlord a certificate from the applicable insurer or its authorized agent evidencing the insurance required by this subparagraph and any additional insurance which shall be taken out upon any part of the Leased Property. Thereafter during the Term, Tenant shall deliver to Landlord certificates from the applicable insurer or its authorized agent in form reasonably satisfactory to Landlord evidencing renewals or replacements of all such policies of insurance at least fifteen (15) days before any such insurance shall expire. Tenant further agrees that all such policies shall provide that proceeds thereunder will be payable to Landlord as Landlord's interest may appear, without reduction because of any negligence or other acts or omissions of Tenant (including any use of the Leased Property by Tenant for a purpose more hazardous than that permitted by the terms of the applicable insurance policy). If Tenant fails to obtain any insurance required by this Lease or to provide confirmation of any such insurance as required by this Lease, Landlord shall be entitled (but not limited required) to general liabilityobtain the insurance that Tenant has failed to obtain or for which Tenant has not provided the required confirmation and, automobile liabilitywithout limiting Landlord's other remedies under the circumstances, workers compensation Landlord may require Tenant to reimburse Landlord for the cost of such insurance and other forms to pay interest thereon computed at the Default Rate from the date such cost was paid by Landlord until the date of coverage that are customarily carried reimbursement by businesses involved in Tenant. In the real estate development and construction industry in event any of the market area where the Leased Property is locateddestroyed or damaged by fire, explosion, windstorm, hail or by any other casualty against which insurance shall have been required hereunder, (i) Landlord may, but shall not be obligated to, make proof of forms loss if not made promptly by Tenant, (ii) each insurance company concerned is hereby authorized and in amounts directed to make payment for such loss directly to Landlord for application as required by Paragraph 4, and (iii) Landlord may settle, adjust or compromise any and all claims for loss, damage or destruction under any policy or policies of insurance (provided, that are acceptable if any such claim is for less than $10,000,000 and no Event of Default shall have occurred and be continuing, Tenant shall have the right to Lendersettle, specifically including property coverage in adjust or compromise the form customarily referred claim as Tenant deems appropriate; and, provided further, that so long as no Event of Default shall have occurred and be continuing, Landlord must provide Tenant with at least forty-five (45) days notice of Landlord's intention to as “builders risk” coverage on each Home until settle any such claim before settling it unless Tenant shall already have approved of the Home is released from the Security Instrumentsettlement by Landlord). If any Home is completed casualty shall result in damage to or no longer eligible for builders risk coverage, Borrower will purchase and maintain property insurance coverage (fire and extended coverage) in a form and with coverage limits and deductibles that are acceptable to Lender in its sole discretion. Lender’s approval of Borrower’s insurance will not be a representation loss or destruction of the solvency Leased Property in excess of any insurer $1,000,000, Tenant shall give immediate notice thereof to Landlord and Paragraph 4 shall apply. In the event that insurance proceeds totaling not more than $1,000,000 are collected as a result of a fire or other casualty involving the sufficiency Leased Property, Tenant may directly receive such proceeds so long as no Event of any amount of insurance. Borrower will deliver copies Default shall have occurred and be continuing and so long as Tenant applies such proceeds towards the restoration, replacement and repair of the insurance policies or certificates evidencing the insurance coverage required by Lender to Lender from time to time upon request therefor by LenderLeased Property as provided under subparagraph 4(a)(iv). (b) If any Home or any part thereof is damaged or destroyed by flood, earthquake, wind, fire, or by other means, Borrower shall restore the Home promptly to its prior condition and provide whatever funds are necessary to complete such restoration. All insurance proceeds attributable to such damage or destruction shall be deposited with Lender or a depository institution designated by Lender or applied against the Loan (subject to being re-advanced if the Home is repaired or re-built). After any such damage or destruction Lender shall be under no obligation to continue making Advances or disbursements of insurance proceeds until the following shall have occurred: (i) if required by Lender, Borrower shall have provided to Lender for its approval a revised budget, plans and specifications and any appropriate amendments to the Construction Contract which address such rebuilding; and (ii) Borrower shall have deposited into Borrower’s Funds Account such additional funds as Lender, in its sole judgment, deems appropriate to assure completion of the Home in accordance with any such approved revised budget and plans.

Insurance and Casualty. Grantor will keep the Property ---------------------- insured against loss or damage by fire, explosion, windstorm, hail, flood (a) Borrower will maintain if the Property shall at any time be located in an identified "flood prone area" in which flood insurance has been made available pursuant to the Flood Disaster Protection Act of 1973), tornado and such other hazards as may be required by the Noteholder by policies (including but not limited to general liabilityof fire, automobile liability, workers compensation extended coverage and other forms insurance in such company or companies, in such amounts, upon such terms and provisions, and with such endorsements, all as may be acceptable to the Noteholder. Grantor will also provide such other insurance as the Noteholder may from time to time require, in such companies, upon such terms and provisions, in such amounts, and with such endorsements, all as are approved by the Noteholder. Grantor further agrees that Grantor will deliver to the Noteholder certified copies of coverage the original policies evidencing such insurance and any additional insurance which shall be taken out upon any part of the Property and receipts evidencing the payment of all premiums, and will deliver certificates evidencing renewals of all such policies of insurance to the Noteholder at least fifteen (15) days before any such insurance shall expire. Without limiting the discretion of the Noteholder with respect to required endorsements to insurance policies, Grantor further agrees that are customarily carried by businesses involved all such policies shall provide that proceeds thereunder will be payable to the Noteholder as its interest may appear pursuant and subject to a mortgagee clause (without contribution) of standard form attached to or otherwise made a part of the applicable policy. In the event of foreclosure of this Deed of Trust, or other transfer of title to the Property in extinguishment in whole or in part of the secured indebtedness, all right, title and interest of Grantor in and to such policies then in force concerning the Property and all proceeds payable thereunder shall thereupon vest in the real estate development and construction industry purchaser at such foreclosure or the Noteholder or other transferee in the market area where event of such other transfer of title. In the event any of the Property covered by such insurance is locateddestroyed or damaged by fire, explosion, windstorm, hail or by any other casualty against which insurance shall have been required hereunder, (i) the Noteholder may, but shall not be obligated to, make proof of loss if not made promptly by Grantor, (ii) each insurance company concerned is hereby authorized and directed to make payment for such loss directly to the Noteholder instead of to Grantor, and (iii) the Noteholder shall have the right to apply the insurance proceeds first, to reimburse the Noteholder or the Trustee for all costs and expenses, including reasonable attorney's fees, incurred in connection with the collection of such proceeds and, second, the remainder of said proceeds shall be applied, at the discretion of the Noteholder, in payment (without premium or penalty) of forms the secured indebtedness, either in whole or in part, whether or not then due and in amounts that are acceptable to Lenderpayable, specifically including property coverage in the form customarily referred to as “builders risk” coverage on each Home until order determined by the Home is released from the Security Instrument. If any Home is completed or no longer eligible for builders risk coverage, Borrower will purchase and maintain property insurance coverage (fire and extended coverage) in a form and with coverage limits and deductibles that are acceptable to Lender Noteholder in its sole discretion. Lender’s approval of Borrower’s insurance will not be a representation , or to the repair, restoration or replacement, either partly or entirely, of the solvency of Property so destroyed or damaged, provided that, any insurer insurance proceeds held by the Noteholder to be applied to the repair, restoration or the sufficiency of any amount of insurance. Borrower will deliver copies replacement of the insurance policies Property shall be so held without payment or certificates evidencing the insurance coverage required by Lender to Lender allowance of interest thereon and shall be paid out from time to time upon request therefor compliance by Lender. Grantor with such terms, conditions and requirements as may be reasonably imposed by the Noteholder. In any event, notwithstanding the occurrence of any casualty, the unpaid portion of the secured indebtedness shall remain in full force and effect (b) If any Home or any part thereof is damaged or destroyed by flood, earthquake, wind, fire, or by other means, Borrower shall restore except to the Home promptly to its prior condition and provide whatever funds are necessary to complete such restoration. All insurance proceeds attributable to such damage or destruction shall be deposited with Lender or a depository institution designated by Lender or applied against the Loan (subject to being re-advanced if the Home is repaired or re-built). After any such damage or destruction Lender shall be under no obligation to continue making Advances or disbursements extent of application of insurance proceeds until as provided above) and Grantor shall not be excused in the following shall have occurred: (i) if required by Lender, Borrower shall have provided to Lender for its approval a revised budget, plans and specifications and any appropriate amendments to the Construction Contract which address such rebuilding; and (ii) Borrower shall have deposited into Borrower’s Funds Account such additional funds as Lender, in its sole judgment, deems appropriate to assure completion of the Home in accordance with any such approved revised budget and plans.payment