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agreement because of the acceptance by City, or the deposit with City by Borrower, of any of the <br />insurance policies described in this Agreement. <br />10.2 Liability and Workers Compensation Insurance. <br />(a) Prior to initiating work on the Project and continuing through completion <br />of the rehabilitation of the Project, Borrower and all contractors working on behalf of Borrower <br />on the Project shall maintain a commercial general liability policy in the amount of One Million <br />Dollars ($1,000,000) each occurrence, Two Million Dollars ($2,000,000) annual aggregate, <br />together with Three Million Dollars ($3,000,000) excess liability coverage, or such other policy <br />limits as City may require in its reasonable discretion, including coverage for bodily injury, <br />property damage, products, completed operations and contractual liability coverage. Such policy <br />or policies shall be written on an occurrence basis and shall name the Indemnitees as additional <br />insureds. <br />(b) Until completion of the rehabilitation of the Project, Borrower and all <br />contractors working on behalf of Borrower shall maintain a comprehensive automobile liability <br />coverage in the amount of One Million Dollars ($1,000,000), combined single limit including <br />coverage for owned and non -owned vehicles and shall furnish or cause to be furnished to City <br />evidence satisfactory to City that Borrower and any contractor with whom Borrower has <br />contracted for the performance of work on the Property or otherwise pursuant to this Agreement <br />carries workers' compensation insurance as required by law. Automobile liability policies shall <br />name the Indemnitees as additional insureds. <br />(c) Upon commencement of construction work and continuing completion of <br />the rehabilitation of the Project, Borrower and all contractors working on behalf of Borrower <br />shall maintain a policy of builder's all -risk insurance in an amount not less than the full insurable <br />cost of the Project on a replacement cost basis naming City as loss payee. <br />(d) Borrower shall maintain property insurance covering all risks of loss <br />(other than earthquake), including flood (if required) for 100% of the replacement value of the <br />Project with deductible, if any, in an amount acceptable to City, naming City as loss payee. <br />(e) Companies writing the insurance required hereunder shall be licensed to <br />do business in the State of California. Insurance shall be placed with insurers with a current <br />A.M. Best's rating of no less than A: VII. The Commercial General Liability and comprehensive <br />automobile policies required hereunder shall name the Indemnitees as additional insureds. <br />Builder's Risk and property insurance shall name City as loss payees as their interests may <br />appear. <br />(f) Prior to commencement of construction work, Borrower shall furnish City <br />with certificates of insurance in form acceptable to City evidencing the required insurance <br />coverage and duly executed endorsements evidencing such additional insured status. The <br />certificates shall contain a statement of obligation on the part of the carrier to notify City of any <br />material adverse change, cancellation, termination or non - renewal of the coverage at least thirty <br />(30) days in advance of the effective date of any such material adverse change, cancellation, <br />termination or non - renewal. <br />1755895.2 27 <br />