COOPERATE AND WILL CAUSE ITS AGENTS AND CONTRACTORS TO COOPERATE TO GIVE
LENDER AND ITS CONSULTANTS FULL ACCESS TO THE PROPERTY.
LENDER WILL ENDEAVOR TO
MINIMIZE INTERFERENCE WITH THE ACTIVITIES AT THE PROPERTY IN CONNECTION WITH ANY
SUCH INSPECTION.
ALL INSPECTIONS BY LENDER AND ITS CONSULTANTS SHALL BE FOR THE
SOLE BENEFIT OF LENDER FOR ITS LOAN ADMINISTRATION PURPOSES ONLY.
NEITHER
LENDER NOR ITS CONSULTANTS ASSUMES ANY LIABILITY TO BORROWER OR ANY OTHER PERSON
BY REASON OF LENDER'S OR ITS CONSULTANT'S INSPECTIONS, EXCEPT AS A RESULT OF
SUCH PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
NEITHER BORROWER NOR ANY
OTHER PERSON MAY RELY ON LENDER'S INSPECTIONS FOR ANY PURPOSE (INCLUDING STAGE
OF COMPLETION, ADEQUACY OR WORKMANSHIP, COMPLIANCE WITH GOVERNMENTAL APPROVALS,
OR OTHER MATTERS RELATED TO DESIGN, CONSTRUCTION AND OPERATION).
LENDER'S
INSPECTION OF AN ITEM SHALL NOT RESULT IN ANY WAIVER OF LENDER'S RIGHTS IN THE
EVENT SUCH ITEM DOES NOT CONFORM WITH THIS AGREEMENT.
BORROWER SHALL KEEP BOOKS
AND RECORDS FAIRLY REFLECTING ALL OF ITS BUSINESS AFFAIRS AND TRANSACTIONS.
BORROWER SHALL GRANT LENDER ACCESS TO BORROWER'S BOOKS AND RECORDS DURING NORMAL
BUSINESS HOURS AND WILL PERMIT LENDER TO MAKE COPIES OF BORROWER'S BOOKS AND
RECORDS.
SECTION 7.2
MECHANICS'
LIENS, REAL ESTATE TAXES AND CONDOMINIUM HOMEOWNER'S ASSOCIATION DUES.
BORROWER
SHALL KEEP THE PROPERTY FREE FROM ALL LIENS, INCLUDING MECHANICS' AND
MATERIALMEN'S LIENS. BORROWER SHALL PAY BEFORE DELINQUENT ALL REAL ESTATE TAXES
21
and its portion of the condominium homeowner's association dues against the
Property. Failure of Borrower to pay its portion of condominium homeowner's
association dues prior to delinquency at any time shall constitute an Event of
Default. Upon request, Borrower will furnish Lender with receipts indicating
that all Real Estate Taxes have been paid currently.
SECTION 7.3
COMPLIANCE;
CONSTRUCTION; OPERATION.
BORROWER SHALL CAUSE ALL CONSTRUCTION TO BE DONE FREE
OF DEFECTS IN A GOOD AND WORKMANLIKE MANNER WITH MATERIALS WHICH ARE NEW AND OF
HIGH QUALITY. BORROWER WILL PROMPTLY CORRECT ANY DEFECTS IN CONSTRUCTION. THE
PROJECT WILL BE EQUIPPED WITH FURNISHINGS, FIXTURES AND EQUIPMENT WHICH ARE NEW
AND OF HIGH QUALITY. BORROWER SHALL COMPLY WITH ALL GOVERNMENTAL APPROVALS
PERTAINING TO THE CONSTRUCTION OF THE PROJECT AND THE USE AND OPERATION OF THE
PROPERTY. BORROWER WILL NOT COMMENCE ANY PHASE OF CONSTRUCTION OR OPERATION
UNTIL IT HAS SECURED ALL REQUIRED PERMITS, LICENSES OR OTHER AUTHORIZATIONS FROM
THE APPLICABLE GOVERNMENTAL AUTHORITIES. ALL MATERIALS AND LABOR PURCHASED AND
EMPLOYED FOR THE PROJECT SHALL BE USED SOLELY FOR THE PROJECT AND FOR NO OTHER
PURPOSE.
BORROWER SHALL PERFORM ALL OF ITS OBLIGATIONS UNDER THE BASIC
AGREEMENTS, ALL LEASES, ALL COVENANTS, CONDITIONS AND RESTRICTIONS OF RECORD AND
ALL OTHER MATERIAL AGREEMENTS AFFECTING THE PROPERTY.
EXCEPT AS OTHERWISE
PROVIDED ELSEWHERE IN THIS AGREEMENT, BORROWER SHALL NOT MAKE OR PERMIT ANY
MATERIAL MODIFICATION TO OR TERMINATION OF ANY OF THE BASIC AGREEMENTS WITHOUT
LENDER'S CONSENT.
PRIOR TO THE CONVERSION OF THE PROPERTY, THE PROJECT SHALL BE
OPERATED IN A FIRST-CLASS MANNER AS A RESIDENTIAL APARTMENT BUILDING AND
FOLLOWING CONVERSION OF THE PROJECT THE PROJECT SHALL BE OPERATED