SURVEY; APPRAISAL. AGENT SHALL HAVE
RECEIVED THE SURVEY AND THE APPRAISAL WITH RESPECT TO THE PROPERTY, WHICH SHALL
BE IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO AGENT.
(II)
ENGINEERING REPORT. AGENT SHALL HAVE
RECEIVED THE ENGINEERING REPORT WITH RESPECT TO THE PROPERTY PREPARED BY THE
ENGINEER, WHICH ENGINEERING REPORT SHALL BE REASONABLY ACCEPTABLE TO AGENT.
(III)
ENVIRONMENTAL MATTERS. AN ENVIRONMENTAL
REPORT PREPARED BY AN ENVIRONMENTAL AUDITOR WITH RESPECT TO THE PROPERTY SHALL
HAVE BEEN MADE AVAILABLE TO THE AGENT, WHICH ENVIRONMENTAL REPORT SHALL BE
REASONABLY ACCEPTABLE TO AGENT.
(IV)
PROPERTY INFORMATION. AGENT SHALL HAVE
RECEIVED REASONABLY ACCEPTABLE INFORMATION RELATING TO THE PROPERTY, WHICH SHALL
INCLUDE THE FOLLOWING, TO THE EXTENT REASONABLY AVAILABLE:
(1)
OPERATING STATEMENTS FOR THE CURRENT YEAR
(INCLUDING ACTUAL TO DATE INFORMATION, AN ANNUAL BUDGET AND TRAILING TWELVE
MONTH DATA IN HARD COPY AND ON DISKETTE) AND FOR THE IMMEDIATELY PRECEDING YEAR
(INCLUDING TENANT IMPROVEMENTS COSTS, LEASING COMMISSIONS, CAPITAL RESERVES,
MAJOR REPAIRS, REPLACEMENT ITEMS AND OCCUPANCY RATES IN HARD COPY AND ON
DISKETTE);
(2)
COPIES OF LEASES WITH RESPECT TO THE
TENANTS OF THE PROPERTY, A COPY OF THE STANDARD LEASE FORM, IF ANY, AND TENANT
LEASE ABSTRACTS;
(3)
CURRENT PROPERTY RENT ROLL DATA ON A TENANT
BY TENANT BASIS IN HARD COPY; AND
(4)
CURRENT REAL ESTATE TAX BILLS (OR A
CERTIFICATION OF CURRENT TAX AMOUNTS EVIDENCED IN THE OWNER'S TITLE INSURANCE
POLICY).
(V)
PRO-FORMA FINANCIAL STATEMENT; OPERATING
BUDGET.
AGENT SHALL HAVE RECEIVED (I) THE INITIAL PRO FORMA FINANCIAL STATEMENT
AND OPERATING BUDGET FOR THE PROPERTY FOR THE FOLLOWING TWELVE MONTHS (INCLUDING
ON AN ANNUAL AND MONTHLY BASIS A BREAK-DOWN OF PROJECTED GROSS REVENUES,
PROPERTY EXPENSES, CAPITAL IMPROVEMENT COSTS (INCLUDING LEASING COMMISSIONS AND
TI COSTS), REPLACEMENT RESERVE COSTS AND
33
AVERAGE OCCUPANCY LEVEL (EXPRESSED AS A PERCENTAGE)), (II) A FINANCIAL STATEMENT
THAT FORECASTS PROJECTED REVENUES AND OPERATING EXPENSES FOR NOT LESS THAN THREE
YEARS (INCLUDING THE ASSUMPTIONS USED IN SUCH FORECAST), AND (III) ANY LOCAL
MARKET STUDY AND/OR RESEARCH AND DEMOGRAPHICS REPORT PREPARED FOR BORROWER.
(VI)
SITE INSPECTION.
BORROWER SHALL HAVE PROVIDED
TO AGENT THE OPPORTUNITY TO PERFORM, OR CAUSE TO BE PERFORMED ON ITS BEHALF, AN
ON-SITE DUE DILIGENCE REVIEW OF THE PROPERTY WHICH INSPECTION IS SATISFACTORY TO
AGENT IN ITS SOLE DISCRETION.
(VII)
INSURANCE.
AGENT SHALL HAVE RECEIVED
CERTIFICATES OF INSURANCE DEMONSTRATING INSURANCE COVERAGE IN RESPECT OF THE
PROPERTY OF TYPES, IN AMOUNTS, WITH INSURERS AND OTHERWISE IN COMPLIANCE WITH
THE TERMS, PROVISIONS AND CONDITIONS SET FORTH IN THIS AGREEMENT. SUCH
CERTIFICATES SHALL INDICATE THAT AGENT IS A NAMED ADDITIONAL INSURED AND SHALL
CONTAIN A LOSS PAYEE ENDORSEMENT IN FAVOR OF AGENT WITH RESPECT TO THE PROPERTY
POLICIES REQUIRED TO BE MAINTAINED UNDER THIS AGREEMENT.
(VIII)
LIEN SEARCH REPORTS.
TO THE EXTENT NOT COVERED BY
THE MATERIALS DELIVERED BY THE TITLE INSURANCE COMPANY IN CONNECTION WITH THE
TITLE COMMITMENT, AGENT SHALL HAVE RECEIVED SATISFACTORY REPORTS OF TAX LIEN AND
JUDGMENT SEARCHES AND TITLE UPDATES CONDUCTED BY THE TITLE COMPANIES OR SEARCH
FIRMS ACCEPTABLE TO THE AGENT WITH RESPECT TO THE PROPERTY, SUCH SEARCHES TO