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Borrower to, and its right to use, its properties is not materially and adversely affected thereby. The
Borrower hereby 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 in Section 4.2 hereof.
(d) 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.
(e) 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 hereafter become a party or be subject to 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 this Loan Agreement, the Regulatory Agreement, the Borrower
guaranties or the Promissory Note, or any other agreement or instrument herein or therein contemplated.
(f) Notice of Default. In the event that any Event of Default occurs under this Loan
Agreement, the Borrower shall give prompt notice in writing of such happening to the Trustee.
(g) 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 herein or therein contemplated.
(h) 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 herein or
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.
(i) 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 this Loan
Agreement or in any agreement or document contemplated herein or therein, including the Bond Mortgage,
or otherwise to carry out the intent of this 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.
(j) Environmental Matters. The Borrower will take and continue to take prompt action to
remedy all environmental pollution and contamination, hazardous waste disposal and other environmental
cleanup problems of which it is aware and responsible for, if any, whether or not such cleanup problems
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