Agenda - Council - 08/08/2017 - Laserfiche WebLink

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4.4. Flood and Hazard Insurance Coverage. During the term of the Loan, Borrower shall maintain the following insurance coverages: 4.4.1.Flood Insurance. Based on the Standard Flood Hazard Determination (FEMA Form 81-93): If any portion of a building that is collateral for the Loan is in a special flood hazard area, Borrower must obtain flood insurance for the building under the NFIP. Insurance coverage must contain a MORTGAGEE CLAUSE (or substantial equivalent) in favor of Lender. This clause must provide that any action or failure to act by Borrower, the mortgagor or owner of the insured Property will not invalidate Lender's interest. The policy or endorsements must provide for at least 10 days' prior written notice to Lender of policy cancellation. 4.4.2.Real Estate Hazard Insurance coverage on all real estate that is collateral for the Loan in the amount of the full replacement cost. If full replacement cost insurance in not available, coverage must be for the maximum insurable value. Insurance coverage must contain a MORTGAGEE CLAUSE (or substantial equivalent) in favor of Lender. This clause must provide that any action or failure to act by Borrower, the mortgagor or owner of the insured Property will not invalidate Lender's interest. The policy or endorsements must provide for at least 10 days' prior written notice to the Lender of policy cancellation. 4.5. Guaranty. Guarantor herein covenants that he guarantees payment of all loan accommodations referred to in this Agreement and repayment of all advances made thereunder, together with interest and costs of collection, if any, including reasonable attorney fees not prohibited by law. Said guaranty is of payment and is a continuing, absolute, and unconditional guaranty. 4.6. Use of Proceeds. Borrower warrants that it will use the proceeds of the Loan made by Lender solely for costs of the purchase of the Property and improvements. PART 5. DOCUMENTS FURNISHED PERIODICALLY BY BORROWER AND GUARANTORS AND INSPECTIONS ALLOWED BY BORROWER 5.1 Documents to be furnished neriodically. Borrower and Guarantor will furnish to Lender the following documents at the times indicated throughout the term of this Agreement: 5.1.1 As a condition precedent to closing of this Agreement and upon request of Lender thereafter, evidence satisfactory to Lender that Borrower and the Guarantor are able and authorized to enter into and consummate the credit transactions referred to in this Agreement shall be provided. Such evidence shall include, but is not necessarily limited to, the following: Borrower's articles of organization; certificate of good standing from the state; company authorization resolutions; company minutes; and if Lender requests in a separate writing, an opinion of Borrower's counsel to the foregoing effect. 5.1.2 As a condition precedent to closing of the Loan and upon request of the Lender thereafter, appropriate loan documents to support the credit accommodations in this Agreement, including, as appropriate, promissory notes, mortgages, lease assignments, subordination agreements, other perfection documents, insurance and other Collateral assignments, insurance certificates identifying Lender as loss payee, setoff disclosures, and any and all other documents and instruments which in the opinion of Lender are necessary to validate 4