WRITTEN NOTICE THEREOF. THE
FACILITY A LENDERS WILL NOT BE REQUIRED TO MAKE ANY FURTHER DISBURSEMENTS OF THE
PROCEEDS OF THE FACILITY A LOANS UNTIL ANY CONSTRUCTION LIEN CLAIMS HAVE BEEN
REMOVED (BY PAYMENT OR BY POSTING A BOND) AND THE AGENT MAY, AT ITS OPTION,
RESTRICT DISBURSEMENTS TO RESERVE SUFFICIENT SUMS TO PAY 150% OF THE LIEN. IF
BORROWER SHALL FAIL TIMELY TO (I) DISCHARGE ANY SUCH LIEN OR (II) POST A
STATUTORY LIEN BOND, ANY LENDER MAY, AT ITS ELECTION (BUT SHALL NOT BE REQUIRED
TO), PROCURE THE RELEASE AND DISCHARGE OF SUCH LIEN AND ANY JUDGMENT OR DECREE
THEREON AND, FURTHER, MAY IN ITS SOLE DISCRETION, SETTLE OR COMPROMISE THE SAME,
OR MAY FURNISH SUCH SECURITY OR INDEMNITY AS TITLE INSURER SHALL REQUIRE TO
INSURE SUCH LENDER AGAINST THE ENFORCEMENT THEREOF, AND ANY AMOUNTS SO EXPENDED
BY SUCH LENDER SHALL BE ADDED TO THE DEBT. IN SETTLING, COMPROMISING OR
DISCHARGING ANY CLAIMS FOR LIEN, SUCH LENDER SHALL NOT BE REQUIRED TO INQUIRE
INTO THE VALIDITY OR AMOUNT OF ANY SUCH CLAIM.
(H)
CONSTRUCTION CONTRACTS.
BORROWER SHALL PROMPTLY COMPLY IN ALL
MATERIAL RESPECTS WITH ALL PROVISIONS OF THE CONSTRUCTION CONTRACTS WHICH
REQUIRE APPROVAL OR ACTION BY BORROWER IN A TIMELY MANNER TO INSURE COMPLETION
OF THE IMPROVEMENTS WITHIN THE CONSTRUCTION SCHEDULE AND IN ALL EVENTS BY THE
COMPLETION
75
Date. Borrower shall not materially modify or terminate the General Contract or
any of the Major Contracts without the prior written approval of the Lenders,
which approval shall not be unreasonably withheld. Promptly following its
execution or modification thereof, Borrower shall furnish the Agent with a copy
of each Construction Contract or modification thereof. Promptly following its
receipt thereof, Borrower shall furnish the Agent with a copy of any material
notice received or delivered by Borrower in respect of the Construction
Contracts, including, without limitation, any notice of default.
(I)
SUBSEQUENT DEVELOPMENT MATTERS.
BORROWER SHALL NOT,
SUBSEQUENT TO THE EFFECTIVE DATE, ENTER INTO EASEMENTS, COVENANTS OR AGREEMENTS
REGARDING OR AFFECTING TITLE TO THE LAND OR THE PROJECT OR THE ZONING,
SUBDIVISION OR LAND USE CLASSIFICATION OF THE LAND WITHOUT THE PRIOR WRITTEN
CONSENT OF THE LENDERS, WHICH CONSENT SHALL NOT BE UNREASONABLY WITHHELD WITH
RESPECT TO EASEMENTS, COVENANTS AND AGREEMENTS REASONABLY REQUIRED TO EFFECT THE
DEVELOPMENT OF THE PROJECT FOR THE USES INTENDED BY THIS AGREEMENT.
(J)
CERTIFICATE OF OCCUPANCY.
BORROWER SHALL OBTAIN A
CERTIFICATE OF OCCUPANCY FOR ALL OF THE UNITS BY NO LATER THAN DECEMBER 31,
2009.
(K)
PAYMENT OF TAXES.
BORROWER SHALL PAY ALL REAL ESTATE TAXES
AND ASSESSMENTS AND CHARGES OF EVERY KIND UPON THE PROJECT BEFORE THE SAME
BECOME DELINQUENT, PROVIDED, HOWEVER, THAT BORROWER MAY PAY SUCH TAX UNDER
PROTEST OR TO OTHERWISE CONTEST ANY SUCH TAX OR ASSESSMENT, BUT ONLY IF (I) SUCH
CONTEST HAS THE EFFECT OF PREVENTING THE COLLECTION OF SUCH TAXES SO CONTESTED
AND ALSO OF PREVENTING THE SALE OR FORFEITURE OF THE PROJECT OR ANY PART THEREOF
OR ANY INTEREST THEREIN, (II) BORROWER HAS NOTIFIED THE AGENT OF