Last Update 10 December 2012

Section 9.01. Duty to Obtain Insurance; Types. The Board shall obtain or cause to be obtained and continue in effect adequate blanket public liability insurance (including medical payments), with such limit, as may be considered acceptable to the Federal National Mortgage Association and the Mortgage Corporation, insuring against liability for bodily injury, death and property damage arising from the activities of the Association and its Members, with respect to the Common Areas and any other property under its jurisdiction. The limits of such insurance shall be not less than $1 million for bodily injury or death to any one person, not less than $10 million for bodily injury or death to two or more persons arising out of a single accident or occurrence, and not leas than $500,000 for property damage. The Board shall also obtain or cause to be obtained and continued in effect fire and casualty insurance with extended coverage, without deduction for depreciation, in an amount as near as possible to the full replacement value of the Common Areas and those portions of the Units consisting of all Improvements, built-in or set-in appliances, cabinets and initial basic floor coverings, all as provided in the plans and specifications for the Project. Such insurance shall be maintained for the benefit of Master Lessor, Sublessor, the Association, the Unit Owners, and the Mortgagees as their interests may appear, as as named insureds, subject, however, to loss payment requirements as set forth herein. The Board of Directors shall purchase such other insurance, as necessary, including but not limited to, errors and omissions, directors officers and agents liability insurance, plate glass insurance, medical payments, malicious mischief, liquor liability and vandalism insurance, fidelity bonds and worker’s compensation, and such other risks as shall customarily be covered with respect to condominium projects similar in construction, location and use. Fidelity bond coverage must be obtained by the Association for any person or entity handling funds of the Association, including, but not limited to, officers, directors, trustees and employees of the Association and employees of the professional managing agent of the Association. Notwithstanding any other provisions herein, the Association hall continuously maintain in effect such casualty, flood and liability insurance and a fidelity bond meeting the insurance and fidelity bond requirements for condominium projects established by the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and The Mortgage Corporation (“FHLMC”), so long a any of which is a Mortgagee or Owner of a Condominium within the Project, except to the extent such coverage is not available or has been waived in writing by the FNMA, GNMA, and FHLMC, as applicable. The Association shall procure and keep in force, in form and coverage reasonably satisfactory to Sublessor, such additional insurance from time to time reasonably required by Sublessor, against other insurable risks, if at the time they are commonly insured against for real property similar to the Project and containing comparable Improvements, but only if Sublessor is required to procure such insurance pursuant to the Master Lease. The Association shall also increase the limits of coverage of any policies maintained by the Association to the extent such increases are required of Sublessor under the Master Lease.

Section 9.02. Waiver of Claims Against Association. As to all policies of insurance maintained by or for the benefit of the Association and the Unit Owners, which policies will not be voided or impaired thereby, the Association and the Unit Owners hereby waive and release all claims against one another, the Board of Directors, Master Lessor, Sublessor and Grantor, to the extent of the insurance proceeds available, whether or not the insurable damage or injury is cause by the negligence of or breach of any agreement by any of said Persons.

Section 9.03. Rights and Duty of Unit Owner to Insure. It shall be the responsibility of each unit owner to provide Insurance on his personal property and upon all other property and improvements within his Unit. Nothing herein shall preclude any Unit Owner from carrying any public liability insurance as he may deem desirable to cover his individual liability for damage to person or property occurring inside his individual Unit or elsewhere upon the Project. All policies as may be carried by Unit Owners shall contain waivers of subrogation of claims against Master Lessor, Sublessor, Grantor, the Association, the Board, the officers of the Association and all other Unit Owners. Such policies shall not adversely affect or diminish any insurer’s liability under any insurance obtained by or on behalf of the Association, and duplicate copies of such other policies shall he deposited with the Board. If any loss intended to be covered by insurance carried by, or on behalf of, the Association shall occur and the proceeds payable thereunder shall be reduced by reason of insurance carried by any Unit Owner, such Unit Owner shall assign the proceeds of such insurance carried by him to the Association, to the extent of such reduction, for application by the Board to the same purposes the reduced proceeds are to be applied.

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