|
5.02 Enforceability. Borrower is authorized to exe_ute dv •vt. ,:.ia perform under the Loon Documents which ore
<br />valid and binding obligations of Borrower.
<br />5.03 No Violation. Borrower's undertakings in the Loon Documents do not violate ony of the Requirements or ony
<br />other applicable statute, low, regulation or ordinance or any order or ruling of ony court or governmental entity, or conflict
<br />with, or constitute o breach or defoult under, ony ogreement by which Borrower is, or the Property and Improvements ore,
<br />bound or regulated. Borrower is not in violation of ony statute, low, regulation or ordinonce, or of ony order of any court or
<br />governmental entity. There are no claims, octions or proceedings pending or, to Borrower's knowledge, threatened against
<br />Borrower or affecting the Property or Improvements other thon those disclosed to Lender in writing.
<br />5.04 Financial Information. All finonciol information delivered to Lender, including without limit, information
<br />relating to the finonciol condition of Borrower, the Property, the Improvements, partners or joint venturers of Borrower, or
<br />guarantors, fairly and accurately represents such finonciol condition and has been prepared in accordance with generally
<br />accepted occounting principles consistently opplied, unless otherwise noted in such information. No material adverse
<br />chonge in such finonciol condition hos occurred.
<br />5.05 Accuracy. All reports, documents, instruments, information and forms of evidence delivered to Lender con-
<br />cerning the Loan or required by the Loon Documents are occurote, correct and sufficiently complete to give Lender true and
<br />accurate knowledge of their subject molter, and do not contain any misrepresentation or omission.
<br />5.06 Adequacy of Loan. The undisbursed Loan proceeds, together with Borrower's Funds and all other sums (if ony)
<br />to be provided by Borrower as shown in Exhibit D, ore sufficient to do all of the things specified in Section 2.01(6).
<br />5.07 Taxes. Borrower has filed all required federol, state, county and municipal tax returns and hos paid all taxes
<br />owed and payable, and Borrower knows of no basis for additional assessment with respect to any taxes.
<br />5.08 Utilities. All utility services, including without limit, gas, water, sewage, electrical and telephone, necessary for
<br />the development and occupancy of the Property and Improvements are avoiloble at or within the boundaries of the Property,
<br />or Borrower hos taken oll steps necessary to assure thot all utility services will be ovoiloble upon completion of the Im-
<br />provements. The breach of this representotion and worranty shall be o Default, as defined in this Agreement, if not cured
<br />within thirty (30) days after Lender's notice.
<br />5.09 Compliance. Borrower is familiar with all Requirements. The development of the Property and the construction
<br />of the Improvements will conform to and comply with the Requirements and the Plans and Specifications.
<br />ARTICLE VI.
<br />Default
<br />6.01 Default. The following shall constitute o " Defoult" under the Loan Documents:
<br />(a) Monetary. (i) At Lender's option, Borrower's failure to pay when due ony sums payable under the Note or ony of
<br />the other Loan Documents; or (ii) Borrower's failure to deposit ony Borrower's Funds as and when required under Section
<br />2.01(b); or
<br />(b) Construction; Use. (1) Any material deviation in the work of construction from the Plans and Specifications or
<br />Requirements or the appearance or use of defective workmanship or materials in constructing the Improvements, and
<br />Borrower's failure to remedy the same to Lender's satisfaction within ten (10) days of Lender's written demand to do so; or (ii)
<br />the cessation of construction of the Improvements prior to completion for o continuous period of more than fifteen (15) days
<br />(except as caused by events for which delay may be permitted under Article VIII); or (iii) the prohibition, enjoining or
<br />delaying (in any manner) of the construction, sale or leasing of any of the Improvements in accordance with the Loon
<br />Documents for o continuous period of more thon thirty (30) days; or (iv) the curtoilment in availability to the Property or
<br />Improvements of utilities or other public services necessary for the full occupancy and utilization of the Improvements for 0
<br />continuous period of more than thirty (30) days; or
<br />(c) Liens, Attachment: Condemnation. (i) The filing of ony cloim of lien ogoinst the Property or Improvements or the
<br />service on Lender of any bonded stop notice relating to the Loon and the continuance of the claim of lien or bonded stop
<br />notice for twenty (20) days without discharge, satisfaction or provision for payment being mode in occordonce with Section
<br />3.06; or (ii) the condemnation, seizure or appropriation of, or occurrence of on uninsured casualty with respect to any
<br />materiol, os determined by Lender in its sole and absolute discretion, portion of the Property or Improvements; or (iii) the
<br />sequestration or attachment of, or any levy or execution upon; any of the Property or Improvements; any other collateral
<br />provided by Borrower under any of the Loan Documents; any monies in the Account or in the Borrower's Funds Account; or
<br />any substantial portion of the other assets of Borrower, which is not released, expunged or dismissed prior to the earlier of:
<br />thirty (30) days after sequestration, attachment or execution; or the sole of the assets affected thereby; or
<br />(d) Performance of Obligations. (1) Borrower's failure to perform its obligations under any of the Loon Documents.
<br />However, if o specific time is provided for the remedy of such failure, Borrower's failure to perform will not constitute a
<br />Default until the specified time period expires; or
<br />(e) Representations and Warranties. (i) The failure of any of Borrower's representations or warranties in any of the
<br />Loon Documents, except as to adverse change in financial condition, to be true within fifteen (15) days, or other period as
<br />may be provided, after notice by lender, or (ii) any material adverse change in the finonciol condition of Borrower or ony
<br />other person or entity in ony manner obligated to Lender under the Loon Documents from the finonciol condition represented
<br />to Lender as of the Effective Dote; or
<br />-4-
<br />
|