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is a party without the consent of the Issuer or the Trustee, as applicable. This indemnification survives the
payment in full of the Bonds and the resignation or removal of the Trustee.
The indemnification set forth above is intended to and shall include the indemnification of all
affected members of the Issuer’s Board of Trustees, the Executive Director and other Issuer officials,
officers, agents, representatives and employees of the Issuer and the Trustee and its Board members,
officers, employees, officials and agents, respectively. That indemnification is intended to and shall be
enforceable by the Issuer and the Trustee, respectively, to the full extent permitted by law.
Section 5.4 Borrower Not to Adversely Affect Exclusion from Gross Income of Interest
on Bonds. The Borrower hereby represents that it has taken and caused to be taken, and covenants that it
will take and cause to be taken, all actions that may be required of it, alone or in conjunction with the Issuer,
for the interest on the Bonds to be and to remain excluded from gross income for federal income tax
purposes (other than interest on the Bonds for any period during which the Bonds are held by a “substantial
user” of any facility financed with the proceeds of the Bonds or a “related person,” as such terms are used
in Section 147(a) of the Code), and represents that it has not taken or permitted to be taken on its behalf,
and covenants that it will not take or permit to be taken on its behalf, any actions that would adversely affect
such exclusion under the provisions of the Code.
Section 5.5 Affirmative Covenants. Unless the Issuer or the FHA Lender shall otherwise
consent in writing:
(a) Maintenance of Properties. The Borrower shall maintain and preserve in good working
order and condition, ordinary wear and tear and casualty loss excepted, all of its properties which are
necessary or useful in the proper conduct of its business, and shall from time to time make all necessary
repairs, renewals, replacements, additions and improvements to said properties. All damage to apartment
units shall be repaired promptly and apartment units shall be maintained so as to be available at all times
for habitation.
(b) Keeping of Records and Books of Account. The Borrower shall keep adequate records and
books of account in which complete entries will be made in accordance with GAAP or indicating deviations
therefrom, reflecting all financial transactions. The Borrower shall deliver to the Trustee annually, not later
than 120 days following the end of the Borrower’s Fiscal Year, commencing with the Fiscal Year ending
in 2026, its year-end financial statements accompanied by a written statement of the Borrower that the
Borrower has not violated any of the terms, covenants or provisions of this Loan Agreement insofar as it
relates to accounting matters. The Trustee shall have no duty to review or analyze any such financial
statements. The Trustee shall not be deemed to have notice of any information contained therein or event
of default which may be disclosed in any manner therein.
(c) Payment of Taxes, Etc. The Borrower shall promptly pay and discharge all taxes,
assessments, fees, and other Government charges or levies imposed upon it or upon any of its properties,
income or profits, before the same shall become delinquent; all lawful claims of materialmen, mechanics,
carriers, warehousemen, landlords and other similar Persons for labor, materials, supplies and rentals, which
if unpaid might by law become a Lien upon its properties; any Indebtedness heretofore or hereafter incurred
by it when due, and discharge, perform and observe covenants, provisions and conditions to be discharged,
performed and observed by it in connection therewith, or in connection with any agreement or other
instrument relating thereto or in connection with any Lien existing at any time upon any of its properties;
provided, however, that the Borrower shall not be required to pay any of the foregoing if (1) the amount,
applicability or validity thereof shall currently be contested in good faith by appropriate proceedings; (2) the
Borrower shall have set aside on its books adequate reserves with respect thereto; and (3) the title of the
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