SHALL BE DEPOSITED AND HELD IN THE CONDOMINIUM
DEPOSIT ACCOUNT UNTIL SUCH TIME AS (I) A PURCHASER BECOMES ENTITLED TO THE
REFUND THEREOF IN ACCORDANCE WITH THE TERMS OF ITS CONTRACT OF SALE OR (II) THE
CLOSING OCCURS UNDER A CONTRACT OF SALE, WHEREUPON THE CONTRACT DEPOSIT SHALL BE
APPLIED ON ACCOUNT OF THE PAYMENT REQUIRED UNDER SECTION 15.4(H) BELOW.
IF (X)
A PURCHASER DEFAULTS UNDER A CONTRACT OF SALE AND (Y) THE CONTRACT DEPOSIT IS
PAID TO BORROWER, BORROWER SHALL PAY SUCH CONTRACT DEPOSIT TO LENDER, FOR
APPLICATION TO THE DEBT IN SUCH ORDER OF PRIORITY AS LENDER SHALL ELECT IN ITS
SOLE DISCRETION.
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 LENDER BORROWER'S CERTIFICATION AS TO SUCH COMPLIANCE IN
ACCORDANCE WITH SECTION 10.1(K), (II) BORROWER DELIVERS TO LENDER DOCUMENTATION
THAT COMPLIES WITH SECTIONS 9.1(B) AND (C) OF THIS AGREEMENT, (III) BORROWER HAS
DULY COMPLIED WITH ARTICLE X OF THIS AGREEMENT, AND (IV) NO EVENT OF DEFAULT HAS
OCCURRED AND IS CONTINUING.
45
SECTION 15.2
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 LENDER PRIOR TO SUCH
SUBMISSION;
(B)
FROM AND AFTER THE CREATION OF THE RESIDENTIAL CONDOMINIUM, BORROWER
SHALL OBSERVE AND PERFORM THE FOLLOWING COVENANTS:
(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 LENDER RECEIPTS FOR
ALL SUCH PAYMENTS;
(II)
BORROWER SHALL NOT, WITHOUT FIRST OBTAINING LENDER'S 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,