Draft_October 2025_West Orange_HEFSP_with Appendices

prior protected security interest on any other collateral mentioned in the Mortgage. If the Agency shall dcem it necessary or desirable, all or part of the advance may be disbursed in escrow to a Utle insurance company licensed to do business in the State of New Jersey for the purpose of discharging any construction or other hen on the Project and Land or any other security mentioned in the Mortgage: and the Owner agrees to certify in writing that the foregoing conditions have been satisfied. Section 10. Insurance; Condemnation. During the term of the Agency Financing, the Owner shal! 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, but not by way of limitation, flood insurance if any part of the Project is tocated in an area 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 ful) replacement value of the Project. The Owner shall assign and deliver the policies to the Avency. All such insurance policies which are obtained by the Owner during the term of the loan shall fully comply vath all Agency requirements for property and fiability insurance, including but not limited to the Agency requirement that the insurer must meet certain rating standards. ‘The Agency shail be listed as mortyagee, loss payee and additional insured under such policies. Such policies shail provide that the insurer may not cancel the policy and will hot 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 shall not be required to) obtain such coycrage. ‘The Owner shall reimburse the Agency on demand for any premiums paid tor i insurance procured by the Agency, and until so reimbursed. the amount of such premiums shall be added t to the principal sum of the Mortgage Note and shall bear interest at the same interest rate as in the Mortgage Note. In the event of substantial damage to the Project by the occurrence of an insured casually or the taking of a substantial

te and shall bear interest at the same interest rate as in the Mortgage Note. In the event of substantial damage to the Project by the occurrence of an insured casually or the taking of a substantial portion of the Project by condemnation, if. in the sole judgment of the Agency (which judgment shall be conclusive}: (a) the Project can be replaced or restored in whale or in part, and (b) the Project as so replaced will 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. ‘To 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 tien of this Agreement and the obligation of the Owner under the Loan Documents to pay the entire balance of the Loan. The Owner shail 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 shali 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 from loss or physical damage thereto in an amount not less than one year's gross lt