CONSTRUCTION PERMITS THEN
REQUIRED AND OPERATING PERMITS THEN REQUIRED, AS APPLICABLE, AND ALL OTHER LEGAL
REQUIREMENTS, AND SUCH COMPLIANCE IS NOT DEPENDENT ON ANY LAND, IMPROVEMENTS OR
FACILITIES NOT A PART OF THE PROPERTY.
THERE ARE NO PENDING, OR TO BORROWER'S
KNOWLEDGE, THREATENED ACTIONS, SUITS OR PROCEEDINGS TO REVOKE, ATTACH,
INVALIDATE, RESCIND OR MODIFY THE ZONING APPLICABLE TO THE PROPERTY OR ANY PART
THEREOF, OR ANY OF THE CONSTRUCTION PERMITS, AS CURRENTLY EXISTING.
(K)
THE TRADE CONTRACTS AND THE OTHER PROJECT DOCUMENTS HERETOFORE
EXECUTED BY, OR ASSIGNED TO AND ASSUMED BY, BORROWER ARE IN FULL FORCE AND
EFFECT, NOT HAVING BEEN AMENDED, MODIFIED, TERMINATED, ASSIGNED OR OTHERWISE
CHANGED, OR THE PROVISIONS THEREOF WAIVED, EXCEPT AS PERMITTED HEREUNDER OR AS
HAS OTHERWISE BEEN DISCLOSED TO LENDER.
(L)
THE RENOVATION PROJECT BUDGET RELATING TO THE RENOVATION PROJECT
CONTAINS ALL HARD COSTS AND SOFT COSTS AND ANY OTHER COSTS AND EXPENSES
REASONABLY ANTICIPATED TO BE INCURRED IN CONNECTION THE CONSTRUCTION AND
DEVELOPMENT OF THE RENOVATION PROJECT IMPROVEMENTS.
SECTION 3.3.
RENOVATION PROJECT CONSTRUCTION COVENANTS.
FROM THE
DATE HEREOF AND UNTIL PAYMENT AND PERFORMANCE IN FULL OF ALL OBLIGATIONS OF
BORROWER UNDER THE LOAN DOCUMENTS OR THE EARLIER RELEASE OF THE LIEN OF THE
SECURITY INSTRUMENT (AND ALL RELATED OBLIGATIONS) IN ACCORDANCE WITH THE TERMS
OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, BORROWER HEREBY COVENANTS AND
AGREES WITH RESPECT TO EACH PROJECT AS FOLLOWS:
92
3.3.1.
GENERAL.
BORROWER SHALL CAUSE THE PROJECT COSTS OF THE
CONSTRUCTION OF THE PROJECT IMPROVEMENTS TO BE IN ACCORDANCE WITH THE PROJECT
BUDGET (SUBJECT TO BORROWER'S RIGHTS AND OBLIGATIONS WITH RESPECT TO SHORTFALLS,
AND BORROWER'S RIGHTS TO CHANGE THE PROJECT BUDGET TO THE EXTENT PERMITTED UNDER
THIS AGREEMENT).
BORROWER SHALL CAUSE CONSTRUCTION OF THE PROJECT IN ACCORDANCE
WITH THE APPLICABLE PLANS AND SPECIFICATIONS (AS THEY MAY BE REVISED AS
PERMITTED HEREUNDER) IN ALL MATERIAL RESPECTS, FREE AND CLEAR OF LIENS OR CLAIMS
FOR MATERIALS SUPPLIED OR FOR LABOR OR SERVICES PERFORMED IN CONNECTION WITH THE
CONSTRUCTION OF THE PROJECT OR OTHERWISE.
3.3.2.
CONSTRUCTION SCHEDULE.
EACH MONTH DURING THE PERIOD FROM THE
COMMENCEMENT OF THE PROJECT UNTIL SUBSTANTIAL COMPLETION OF THE PROJECT,
BORROWER SHALL DELIVER TO LENDER AND CONSTRUCTION CONSULTANT A COPY OF ANY
UPDATED CONSTRUCTION SCHEDULE REFLECTING, AMONG OTHER THINGS, THE ANTICIPATED
DATES OF COMPLETION OF AND THE TIMING OF DISBURSEMENTS OF INCREMENTAL AMOUNT OF
VARIOUS SUBCATEGORIES OF THE PROJECT BUDGET, ALL IN SUCH FORM AND CONTAINING
SUCH DETAILS AS LENDER MAY REQUIRE IN ITS REASONABLE DISCRETION.
3.3.3.
BUDGET ADJUSTMENTS.
NO ADJUSTMENTS IN ANY PROJECT BUDGET SHALL BE
DEEMED TO BE APPROVED WITHOUT THE PRIOR WRITTEN CONSENT OF LENDER, NOT TO BE
UNREASONABLY WITHHELD, EXCEPT TO THE EXTENT EXPRESSLY PERMITTED UNDER SECTION
3.1.13 OR OTHERWISE HEREUNDER.
3.3.4.
INSPECTION OF PROJECT AND BOOKS AND RECORDS.
(A)
BORROWER AGREES TO PERMIT LENDER AND CONSTRUCTION CONSULTANT, OR
DESIGNATED REPRESENTATIVES OF ANY OF THEM, TO ENTER UPON THE PROPERTY, AT ANY
REASONABLE TIMES DURING BUSINESS HOURS ON REASONABLE NOTICE AND WITHOUT MATERIAL
INTERFERENCE WITH THE CONSTRUCTION OF THE PROJECT OR THE OPERATION