OF THE
IMPROVEMENTS, SO AS TO AFFECT THE VALUE OR MARKETABILITY OF THE PROPERTY EXCEPT
THOSE WHICH ARE INSURED AGAINST BY THE TITLE INSURANCE POLICY.
4.1.26
LEASES.
THE PROPERTY IS NOT SUBJECT TO ANY LEASES OTHER THAN THE
LEASES DESCRIBED IN THE RENT ROLL ATTACHED AS SCHEDULE II HERETO AND MADE A PART
HEREOF.
BORROWER IS THE OWNER AND LESSOR OF LANDLORD'S INTEREST IN THE LEASES.
NO PERSON HAS ANY POSSESSORY INTEREST IN THE PROPERTY OR RIGHT TO OCCUPY THE
SAME EXCEPT UNDER AND PURSUANT TO THE PROVISIONS OF THE LEASES.
THE CURRENT
LEASES ARE IN FULL FORCE AND EFFECT AND, TO BORROWER'S KNOWLEDGE, THERE ARE NO
DEFAULTS THEREUNDER BY EITHER PARTY AND THERE ARE NO CONDITIONS THAT, WITH THE
PASSAGE OF TIME OR THE GIVING OF NOTICE, OR BOTH, WOULD CONSTITUTE DEFAULTS
THEREUNDER.
NO RENT (INCLUDING SECURITY DEPOSITS) HAS BEEN PAID MORE THAN ONE
(1) MONTH IN ADVANCE OF ITS DUE DATE.
ALL WORK TO BE PERFORMED BY BORROWER
UNDER EACH LEASE HAS BEEN PERFORMED AS REQUIRED AND HAS BEEN ACCEPTED BY THE
APPLICABLE TENANT, AND ANY PAYMENTS, FREE RENT, PARTIAL RENT, REBATE OF RENT OR
OTHER PAYMENTS, CREDITS, ALLOWANCES OR ABATEMENTS REQUIRED TO BE GIVEN BY
BORROWER TO ANY TENANT HAS ALREADY BEEN RECEIVED BY SUCH TENANT.
THERE HAS BEEN
NO PRIOR SALE, TRANSFER OR ASSIGNMENT, HYPOTHECATION OR PLEDGE OF ANY LEASE OR
OF THE RENTS RECEIVED THEREIN WHICH IS OUTSTANDING.
TO BORROWER'S KNOWLEDGE,
EXCEPT AS SET FORTH ON SCHEDULE II, NO TENANT LISTED ON SCHEDULE II HAS ASSIGNED
ITS LEASE OR SUBLET ALL OR ANY PORTION OF THE PREMISES DEMISED THEREBY, NO SUCH
TENANT HOLDS ITS LEASED PREMISES UNDER ASSIGNMENT OR SUBLEASE, NOR DOES ANYONE
EXCEPT SUCH TENANT AND ITS EMPLOYEES OCCUPY SUCH LEASED PREMISES.
NO TENANT
UNDER ANY LEASE HAS A RIGHT OR OPTION PURSUANT TO SUCH LEASE OR OTHERWISE TO
PURCHASE ALL OR ANY PART OF THE LEASED PREMISES OR THE BUILDING OF WHICH THE
LEASED PREMISES ARE A PART.
EXCEPT AS SET FORTH IN SCHEDULE II, NO TENANT UNDER
ANY LEASE HAS ANY RIGHT OR OPTION FOR ADDITIONAL SPACE IN THE IMPROVEMENTS.
TO
BORROWER'S KNOWLEDGE BASED ON THE ENVIRONMENTAL REPORT DELIVERED TO LENDER IN
CONNECTION HEREWITH, NO HAZARDOUS WASTES OR TOXIC SUBSTANCES, AS DEFINED BY
APPLICABLE FEDERAL, STATE OR LOCAL STATUTES, RULES AND REGULATIONS, HAVE BEEN
DISPOSED, STORED OR TREATED BY ANY TENANT UNDER ANY LEASE ON OR ABOUT THE LEASED
PREMISES NOR DOES BORROWER HAVE ANY KNOWLEDGE OF ANY TENANT'S INTENTION TO USE
ITS LEASED PREMISES FOR ANY ACTIVITY WHICH, DIRECTLY OR INDIRECTLY, INVOLVES THE
USE, GENERATION, TREATMENT, STORAGE, DISPOSAL OR TRANSPORTATION OF ANY PETROLEUM
PRODUCT OR ANY TOXIC OR HAZARDOUS CHEMICAL, MATERIAL, SUBSTANCE OR WASTE, EXCEPT
IN EITHER EVENT, IN COMPLIANCE WITH APPLICABLE FEDERAL, STATE OR LOCAL STATUES,
RULES AND REGULATIONS.
36
4.1.27
SURVEY.
TO BORROWER'S KNOWLEDGE, NO SURVEY FOR THE PROPERTY
DELIVERED TO LENDER IN CONNECTION WITH THIS AGREEMENT FAILS TO REFLECT ANY
MATERIAL MATTER AFFECTING THE PROPERTY OR THE TITLE THERETO.
4.1.28
INVENTORY.
BORROWER IS THE OWNER OF ALL