West Orange Township_Fourth Round HEFSP_Final Draft

prior protected security interest on any other collateral mentioned in the Mortgage. If the Agency shall deen? it necessary or desirable, all or part of the advance may be disbursed in escrow to a title insurance company licensed to do business in the State of New Jersey for the purpose of discharging any construction or other lien on the Project and Land or any other security mentioned in the Mortgage: and the Owner agrees to certify in writing that the toregoing conditions have been sausfied. Section [0. Insurance; Condemnation. During the term of the Agency Financing. the Owner shall cause all the buildings on the premises and the fixtures and articles of personal property covered by the Loan Documents to be insured against loss by fire and against loss by such other hazards as may be required by the Agency for the benefit of the Agency including, bul not by way of limitation, flood insurance if any part of the Project is located in an arca designated by or on behalf of the federal government as having specific flood hazard. Such insurance shall be written by companies, in forms as are satisfactory to the Agency, and in amounts not less than the full replacement valuc of the Project. The Owner shall assign and deliver the policies to the Agency, Ali such insurance policies which are obtained by the Owner during the term of the loan shail fully comply with all Agency requirements for property and liability insurance, including but not limited to the Agency requirement that the insurer must mect certain rating standards. ‘The Agency shall be listed as mortgagee, loss payee and additional insured ander such policies. Such policies shall provide that the insurer may not cancel the policy and will not refuse to renew the policy except after thirty (30) days written notice to the Agency, If the Owner does not provide the Agency with the evidence of insurance as required hercin, the Agency may (but shali not be required to) obtain such coverage. The Owner shall reirnourse the Agency on demand for any premiums paid for insurance procured by the Agency, and until so reimbursed, the amount of such premiums shall be added to the principal sum of the Mortgage Note and shall bear intcrest at the same interest rate as in the Mortgage Note. {n the event of substantial damage to the Project by the occurrence of an insured casualty or the taking of a substantial

te and shall bear intcrest at the same interest rate as in the Mortgage Note. {n the event of substantial damage to the Project by the occurrence of an insured casualty or the taking of a substantial portion of the Project by condermnation, if, in the sole judgment of the Agency (which judgment shall be conclusive): (a) the Project can be replaced or restored in whole or in part, and (b) the Project as so replaced wil! produce sufficient income to meet the obligations of the Owner under the Loan Documents, the proceeds of insurance or condemnation, together with any other money available for such purpose, if sufficient, shall be made available to the Owner, subject to the approval of the Agency. ‘Yo the extent the Project is not replaced or restored, the balance of such proceeds shall be applied to the indebtedness secured thereby. Nothing in this Section shall affect the lien of this Agreement and the obligation of the Owner under the Loan Documents to pay the entire balance of the Loan. The Owner shall maintain continuously in effect such other insurance coverage of the types and in the amounts specified by the Agency. including workers” compensation insurance and other insurance required by law with respect to employees of the Owner, and liability insurance, protecting the Owner and the Agency against any loss or liability or damage for personal injury or property damage with respect to the Project. Owner shall also maintain use and occupancy insurance covering loss of revenues derived from the Project by reason of interruption, total or partial, of the use of the Project resulting {rom loss or physical damage thereto in an amount not less than one year's gross tt