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(d) Utilization of the commercial facilities of the Development, if any, shall be compatible with the residential uses of the Development. Any commercial tenants, improvements and lease provisions must be approved by the Agency. All commercial leases shall include provisions to the effect that in the event of the foreclosure of the Loan, the Agency shall have the option of either continuing in effect or terminating the commercial lease. The Borrower and each commercial tenant agree to do any acts and execute any documents necessary to effectuate the Agency's rights in this regard. (e) The Borrower shall establish a grievance process for rejected prospective tenants which conforms to Agency policies and procedures. (f) The Borrower shall not permit any interest to be charged nor to accrue on any advances to the Development from the Borrower or any partner of the Borrower except upon the following conditions: (1) prior written notice of such advance and the terms thereof shall be given to the Agency; (2) interest shall be limited to the rate on the first mortgage Note; (3) the amount of such advance shall be no greater than necessary to pay current expenses; and (4) such advances shall be repaid after payment of, or the reservation of funds for payment of, all Operating Expenses of the Development and prior to any Distributions from the Development. Failure of any of these conditions shall render the party making the advance liable to refund and /or forfeit all interest paid or due and shall be an event of default pursuant to this Agreement. (g) The dwelling units to be occupied by, or reserved for occupancy by, Qualified Tenants shall be of comparable quality to all other dwelling units, shall be dispersed throughout the Development, and shall be in size and type available in the same percentages as the sizes and types of all other dwelling units. (h) The Borrower agrees that at all times its acts in connection with the Development have complied with and shall continue to comply with all applicable provisions of federal, state and local laws, all applicable provisions of the Act, the rules, regulations, policies and procedures of the Agency and all agreements with the Agency and any other public entities concerning the Development. The Borrower represents to the Agency that professional advice is available to the Borrower for the purpose of enabling the Borrower to be aware of and to comply with said laws, policies, procedures and agreements. The Borrower agrees to indemnify the Agency against any loss incurred by the Agency as a result of the Borrower's failure to comply therewith. Specifically, the Borrower acknowledges the existence of federal, state and local laws regarding the relocation of persons displaced by the Development. The Borrower agrees that the Borrower, and not the Agency, is responsible for complying with CHFA 53SLP /RIDGEVIEW 12/2/88 V01517(DNB) -7-