LOAN, BORROWER HAS OBTAINED CLOSING PROTECTION
LETTERS FROM THE UNDERWRITER FOR THE RESPECTIVE TITLE INSURANCE POLICY.
SECTION 4.24
ENVIRONMENTAL MATTERS.
IN THE ORDINARY COURSE OF EACH
RELATED PERSON'S BUSINESS, THE OFFICERS AND MANAGERS OF EACH RELATED PERSON
CONSIDER THE EFFECT OF ENVIRONMENTAL LAWS ON THE BUSINESS OF SUCH RELATED
PERSON, IN THE COURSE OF WHICH THEY IDENTIFY AND EVALUATE POTENTIAL RISKS AND
LIABILITIES ACCRUING TO SUCH RELATED PERSON DUE TO ENVIRONMENTAL LAWS.
ON THE
BASIS OF THIS CONSIDERATION, EACH RELATED PERSON HAS REASONABLY CONCLUDED THAT
NEITHER
27
VIOLATION OF NOR COMPLIANCE WITH ENVIRONMENTAL LAWS CAN REASONABLY BE EXPECTED
TO HAVE A MATERIAL ADVERSE EFFECT ON THE BUSINESS OR FINANCIAL CONDITION OF SUCH
RELATED PERSON OR ON THE ABILITY OF BORROWER TO PERFORM THE OBLIGATIONS.
NO
RELATED PERSON HAS RECEIVED ANY NOTICE TO THE EFFECT THAT ITS OPERATIONS ARE NOT
IN MATERIAL COMPLIANCE WITH ANY OF THE REQUIREMENTS OF APPLICABLE ENVIRONMENTAL
LAWS OR ARE THE SUBJECT OF ANY FEDERAL OR STATE INVESTIGATION EVALUATING WHETHER
ANY REMEDIAL ACTION IS NEEDED TO RESPOND TO A RELEASE OF ANY TOXIC OR HAZARDOUS
WASTE OR SUBSTANCE INTO THE ENVIRONMENT, WHICH NON-COMPLIANCE OR REMEDIAL ACTION
COULD REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT ON THE BUSINESS
OR FINANCIAL CONDITION OF THE RELATED PERSONS, TAKEN AS A WHOLE, OR ON THE
ABILITY OF BORROWER TO PERFORM THE OBLIGATIONS.
SECTION 4.25
STATUS AS APPROVED SELLER/SERVICER.
BORROWER IS AN
APPROVED SELLER/SERVICER FOR FNMA AND FHLMC IN GOOD STANDING AND IS AN APPROVED
LENDER WITH FHA, VA AND HUD.
SECTION 4.26
REGULATION U.
BORROWER HAS NOT, DIRECTLY OR INDIRECTLY,
USED ANY OF THE PROCEEDS OF THE LOANS FOR THE PURPOSE, WHETHER IMMEDIATE,
INCIDENTAL OR ULTIMATE, OF BUYING ANY "MARGIN STOCK" OR OF MAINTAINING, REDUCING
OR RETIRING ANY INDEBTEDNESS ORIGINALLY INCURRED TO PURCHASE A STOCK THAT IS
CURRENTLY ANY "MARGIN STOCK," OR FOR ANY OTHER PURPOSE WHICH MIGHT CONSTITUTE
THIS TRANSACTION A "PURPOSE CREDIT," IN EACH CASE WITHIN THE MEANING OF
REGULATION U, OR OTHERWISE TAKEN OR PERMITTED TO BE TAKEN ANY ACTION WHICH WOULD
INVOLVE A VIOLATION OF REGULATION U OR OF REGULATION T (12 C.F.R. 220, AS
AMENDED) OR REGULATION X (12 C.F.R. 224, AS AMENDED) OR ANY OTHER REGULATION OF
SUCH BOARD.
ARTICLE V
AFFIRMATIVE COVENANTS
Each Related Person shall at all times comply with (or cause compliances with)
the covenants contained in this Article V, from the date hereof and for so long
as any part of the Obligations or the Commitment is outstanding unless Lender
has agreed otherwise.
SECTION 5.1
FINANCIAL STATEMENTS AND REPORTS.
(A)
BORROWER SHALL FURNISH TO LENDER THE FOLLOWING, ALL IN FORM AND
DETAIL REASONABLY SATISFACTORY TO LENDER:
(I)
PROMPTLY AFTER BECOMING AVAILABLE, AND IN ANY EVENT WITHIN NINETY
(90) DAYS AFTER THE CLOSE OF EACH FISCAL YEAR, BORROWER'S AUDITED CONSOLIDATED
BALANCE SHEET AS OF THE END OF SUCH FISCAL YEAR, AND THE RELATED AUDITED
CONSOLIDATED STATEMENTS OF INCOME, STOCKHOLDERS' EQUITY AND CASH FLOWS OF
BORROWER FOR SUCH FISCAL YEAR, SETTING FORTH IN EACH CASE IN COMPARATIVE FORM
THE CORRESPONDING FIGURES