This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
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 Borrower to, and its right to use, its properties is not materially and adversely affected
thereby. The Borrower agrees that, in the event it fails to pay or cause to be paid taxes, assessments, fees
and other Government charges or levies or the premium on any required insurance and such failure
constitutes a default under the FHA Loan Documents, the Trustee may make such payment, but is not
obligated to do so, and the Trustee shall be reimbursed by the Borrower therefor with interest on the amount
so advanced at the Interest Rate for Advances as provided under the caption “Additional Payments” above.
Insurance. The Borrower shall at all times maintain or cause to be maintained, insurance of such
types and in such amounts as required by the FHA Loan Documents.
Notice of Material Litigation. The Borrower shall promptly notify the Issuer and the Trustee in
writing of any litigation, arbitration proceeding or administrative investigation, inquiry or other proceeding
to which it may become a party or be subject to after the date of the Loan Agreement which may result in
a change in the business or assets or in the condition, financial or otherwise, of the Borrower which would
materially impair the ability of the Borrower to perform the Loan Agreement, the Regulatory Agreement,
the Borrower guaranties or the Promissory Note, or any other agreement or instrument contemplated
therein.
Notice of Default. In the event that any Event of Default occurs under the Loan Agreement, the
Borrower shall give prompt notice in writing of such happening to the Trustee.
Performance of Contracts, Etc. Except to the extent contested in good faith, the Borrower shall
perform according to and shall materially comply with all of its Contractual Obligations and all
requirements of law if nonperformance thereof would result in a change in the business or assets or in the
condition, financial or otherwise, of the Borrower which would materially impair the ability of the Borrower
to perform the Borrower Documents or any other agreement or instrument contemplated therein.
Notice of Other Matters. The Borrower shall promptly notify the Trustee in writing of any of the
following events:
(1) Any event with respect to the business or assets or in the condition, financial or
otherwise, of the Borrower which would materially impair the ability of the Borrower to perform
its obligations under the Borrower Documents or any other agreement or instrument therein
contemplated.
(2) A default by the Borrower in any material respect under any material agreement to
which the Borrower is a party or by which the Borrower or its properties or assets may be bound
which would materially impair the ability of the Borrower to repay the Loan, giving in each case
the details thereof and specifying the action proposed to be taken with respect thereto.
Cooperation in Perfecting Security Interests, Etc. The Borrower shall promptly perform such acts
as may be necessary or advisable to perfect and maintain any Lien provided for in the Loan Agreement or
in any agreement or document contemplated therein or otherwise to carry out the intent of the Loan
Agreement. The Borrower shall promptly execute, file, deliver and perform or cause to be done, executed,
delivered and performed all such documents, instruments, agreements, things and acts, including, without
limitation, financing statements, continuation statements and mortgages as may be necessary or advisable
to perfect or maintain a Lien on any and all assets or rights owned by the Borrower, or any interest of the
Borrower therein.
D-9Jump to an indexed page (744 of 744)