WITH SECTION 21.1. NOTWITHSTANDING THE
ABOVE, BORROWER SHALL FIRST APPLY THE AVAILABLE CONTRACT DEPOSITS TOWARDS
FUNDING THE CONSTRUCTION PURSUANT TO THE CONSTRUCTION BUDGET, PROVIDED THAT:
(I) BORROWER HAS DULY COMPLIED WITH ALL APPLICABLE LAWS PERTAINING TO THE USE OF
SUCH CONTRACT DEPOSITS FOR CONSTRUCTION COSTS AND DELIVERS TO THE AGENT
BORROWER'S CERTIFICATION AS TO SUCH COMPLIANCE IN ACCORDANCE WITH
SECTION 9.1(J), (II) BORROWER HAS DULY COMPLIED WITH ARTICLE IX OF THIS
AGREEMENT, AND (III) NO EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING.
SECTION 14.2
RESIDENTIAL CONDOMINIUM.
(A)
BORROWER HAS SUBMITTED THE DEVELOPMENT PROPERTY TO THE
PROVISIONS OF THE CONDOMINIUM ACT AND WILL SATISFY ALL OF THE REQUIREMENTS
THEREOF AND OF ANY OTHER APPLICABLE LAW OR RESTRICTION NECESSARY TO CREATE A
VALID RESIDENTIAL CONDOMINIUM REGIME IN RESPECT OF THE RESIDENTIAL PROPERTY (THE
"RESIDENTIAL CONDOMINIUM"), PROVIDED THAT THE FORM AND SUBSTANCE OF THE
CONDOMINIUM DOCUMENTS INCLUDING, WITHOUT LIMITATION, THE RESIDENTIAL CONDOMINIUM
UNIT DESIGNATIONS, DESCRIPTIONS, FLOOR PLANS, SALE PRICES AND PROPOSED FORM OF
CONTRACT OF SALE FOR THE RESIDENTIAL CONDOMINIUM UNITS, AS WELL AS THE
DESCRIPTION OF COMMON ELEMENTS AND BREAKDOWN OF COMMON INTERESTS APPURTENANT TO
EACH RESIDENTIAL CONDOMINIUM UNIT, SHALL BE SUBJECT TO THE WRITTEN APPROVAL OF
THE LENDERS PRIOR TO SUCH SUBMISSION; PROVIDED THAT IF THE SALE PRICE FOR ANY
RESIDENTIAL CONDOMINIUM UNIT SET FORTH IN THE CONDOMINIUM DOCUMENTS IS LOWER
THAN THE RELEASE PRICE FOR SUCH RESIDENTIAL CONDOMINIUM UNIT AND SUCH DIFFERENCE
IS LESS THAN TEN PERCENT (10%) OF SUCH RELEASE PRICE THEN THE APPROVAL OF THE
REQUIRED LENDERS SHALL BE REQUIRED WITH RESPECT TO SUCH SALE PRICES.
(B)
FROM AND AFTER THE CREATION OF THE RESIDENTIAL CONDOMINIUM,
BORROWER SHALL OBSERVE AND PERFORM THE FOLLOWING COVENANTS:
64
(I)
BORROWER SHALL PAY ALL COMMON CHARGES AND OTHER ASSESSMENTS AS
REQUIRED BY THE CONDOMINIUM DOCUMENTS IN RESPECT OF UNSOLD RESIDENTIAL
CONDOMINIUM UNITS AND SHALL PROMPTLY UPON DEMAND EXHIBIT TO THE AGENT RECEIPTS
FOR ALL SUCH PAYMENTS;
(II)
BORROWER SHALL NOT, WITHOUT FIRST OBTAINING THE LENDERS' PRIOR
WRITTEN CONSENT (WHICH CONSENT, EXCEPT FOR ITEM (4), SHALL NOT BE UNREASONABLY
WITHHELD): (1) VOTE FOR OR CONSENT TO ANY MODIFICATION OF, AMENDMENT TO OR
RELAXATION IN THE ENFORCEMENT OF ANY PROVISION OF THE CONDOMINIUM DOCUMENTS;
(2) IN THE EVENT OF DAMAGE TO OR DESTRUCTION OF THE RESIDENTIAL PROPERTY, VOTE
IN OPPOSITION TO A MOTION TO REPAIR, RESTORE OR REBUILD; (3) PARTITION OR
SUBDIVIDE ANY RESIDENTIAL CONDOMINIUM UNIT; OR (4) CONSENT TO THE TERMINATION OF
THE RESIDENTIAL CONDOMINIUM;
(III)
BORROWER SHALL FULLY AND FAITHFULLY OBSERVE, KEEP AND PERFORM, IN
ALL MATERIAL RESPECTS, EACH AND EVERY REQUIREMENT, CONDITION, COVENANT,
AGREEMENT AND PROVISIONS UNDER THE CONDOMINIUM ACT AND THE CONDOMINIUM DOCUMENTS
ON THE PART OF BORROWER TO BE OBSERVED, KEPT AND PERFORMED. BORROWER SHALL
PROMPTLY DELIVER TO THE AGENT A COPY OF ANY NOTICE OF DEFAULT RECEIVED BY
BORROWER WITH RESPECT TO ANY OBLIGATION OF BORROWER UNDER THE PROVISIONS OF THE
CONDOMINIUM DOCUMENTS OR THE CONDOMINIUM ACT;
(IV)
BORROWER SHALL PROMPTLY SUBMIT TO THE AGENT COPIES OF EXECUTED
CONTRACTS OF SALE, NOTICES OF CANCELLATION OF CONTRACTS