Common use of Maintenance of Hazard Insurance; Property Protection Expenses Clause in Contracts

Maintenance of Hazard Insurance; Property Protection Expenses. The Master Servicer shall cause to be maintained for each Mortgage Loan hazard insurance naming the Master Servicer or the related subservicer as loss payee under it providing extended coverage in an amount that is at least equal to the lesser of (i) the maximum insurable value of the improvements securing the Mortgage Loan from time to time or (ii) the combined principal balance owing on the Mortgage Loan and any mortgage loan senior to the Mortgage Loan from time to time. The Master Servicer shall also maintain on property acquired through foreclosure, or by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which is at least equal to the lesser of (i) the maximum insurable value from time to time of the improvements that are a part of the property or (ii) the combined principal balance owing on the Mortgage Loan and any mortgage loan senior to the Mortgage Loan at the time of the foreclosure or deed in lieu of foreclosure plus accrued interest and the good-faith estimate of the Master Servicer of related Liquidation Expenses to be incurred. These requirements will be satisfied if the Master Servicer obtains and maintains a blanket policy consistent with prudent industry standards insuring against hazard losses on all of the Mortgage Loans in an aggregate amount prudent under industry standards. The blanket policy may contain a deductible clause on terms substantially equivalent to those commercially available and maintained by comparable servicers. If the blanket policy contains a deductible clause, the Master Servicer shall deposit in the Collection Account the amount not otherwise payable under the blanket policy because of the deductible clause if a Mortgaged Property incurs a loss that would have been covered by an individual hazard policy with extended coverage.

Maintenance of Hazard Insurance; Property Protection Expenses. The Master Servicer shall cause not be obligated to be maintained for each Mortgage Loan monitor the maintenance of hazard insurance naming subsequent to the Master origination of a Mortgage Loan. The Servicer or the related subservicer as loss payee under it providing shall maintain hazard insurance with extended coverage in an amount that is at least equal to the lesser of (i) the maximum insurable value of the improvements securing the Mortgage Loan from time to time or (ii) the combined principal balance owing on the Mortgage Loan and any mortgage loan senior to the Mortgage Loan from time to time. The Master Servicer shall also maintain on property acquired through foreclosure, upon foreclosure or by deed in lieu of foreclosure, hazard insurance with extended coverage in an amount which that is at least equal to the lesser of (i) the maximum insurable value from time to time of the improvements that are a part of the property such Mortgaged Property or (ii) the combined principal balance owing on the such Mortgage Loan and any mortgage loan senior to the such Mortgage Loan at the time of the such foreclosure or deed in lieu of foreclosure foreclosure, plus accrued interest and the good-faith estimate of the Master Servicer of related Liquidation Expenses to be incurredincurred in connection therewith. These requirements will Amounts collected by the Servicer under any such policies shall be satisfied if deposited in the Master Collection Account to the extent required by Section 3.02. If any Mortgaged Property is located in a federally designated flood area, the hazard insurance to be maintained for the related Mortgage Loan shall include flood insurance. All such flood insurance shall be in such amounts as are required under applicable guidelines of the Federal Flood Emergency Act. The Servicer obtains shall be under no obligation to require that any Mortgagor maintain earthquake or other additional insurance and maintains shall be under no obligation itself to maintain any such additional insurance on property acquired in respect of a Mortgage Loan, other than pursuant to applicable laws and regulations in force from time to time. The Servicer may obtain and maintain a blanket insurance policy consistent with prudent industry standards insuring against all or certain hazard losses on all of the Mortgage Loans in an aggregate amount prudent under industry standards. The Such blanket insurance policy may contain provide for a deductible clause on terms substantially equivalent to those commercially available and maintained by comparable servicersdeductible. If a loss on a Mortgage Property occurs that would have been covered by the blanket hazard insurance policy contains a deductible clauserequired pursuant to the first sentence of this Section 3.04, the Master Servicer shall deposit in into the Collection Account the any amount not otherwise payable under the blanket policy because of the deductible clause if a Mortgaged Property incurs a loss that would have been covered by an individual hazard policy with extended coveragesuch deductible.