SUCH APPROVED ANNUAL BUDGET SHALL BE ADJUSTED TO REFLECT ACTUAL
INCREASES IN BASIC CARRYING COSTS AND UTILITIES EXPENSES. IN THE EVENT THAT
BORROWER MUST INCUR AN EXTRAORDINARY EXPENSE, THEN BORROWER SHALL PROMPTLY
DELIVER TO LENDER A REASONABLY DETAILED EXPLANATION OF SUCH PROPOSED
EXTRAORDINARY EXPENSE FOR LENDER'S APPROVAL, WHICH APPROVAL SHALL NOT BE
UNREASONABLY WITHHELD, CONDITIONED OR DELAYED, PROVIDED, HOWEVER, BORROWER SHALL
BE PERMITTED TO INCUR AN EXTRAORDINARY EXPENSE REASONABLY NECESSARY TO PREVENT
OR ADDRESS IMMINENT DANGER TO PERSONS OR PROPERTY WITHOUT THE PRIOR APPROVAL OF
LENDER PROVIDED THAT BORROWER PROMPTLY ADVISES LENDER OF SUCH EXTRAORDINARY
EXPENSE AND THE NATURE THEREOF.
(K)
IN THE EVENT THAT BORROWER FAILS TO DELIVER ANY OF THE FINANCIAL
STATEMENTS, REPORTS OR OTHER INFORMATION REQUIRED TO BE DELIVERED TO LENDER
PURSUANT TO THIS SECTION 2.09 ON OR PRIOR TO THEIR DUE DATES, IF ANY SUCH
FAILURE SHALL CONTINUE FOR TEN (10) DAYS FOLLOWING NOTICE THEREOF FROM LENDER,
BORROWER SHALL PAY TO LENDER ON EACH PAYMENT DATE FOR EACH MONTH OR PORTION
THEREOF THAT ANY SUCH FINANCIAL STATEMENT, REPORT OR OTHER INFORMATION REMAINS
UNDELIVERED, AN ADMINISTRATIVE FEE IN THE AMOUNT OF FIVE HUNDRED DOLLARS ($500)
MULTIPLIED BY THE NUMBER OF UNDELIVERED STATEMENTS, REPORTS OR OTHER ITEMS UP TO
A MAXIMUM AMOUNT OF TWO THOUSAND DOLLARS ($2,000) FOR ANY APPLICABLE REPORTING
PERIOD. BORROWER AGREES THAT SUCH ADMINISTRATIVE FEE (I) IS A FAIR AND
REASONABLE FEE NECESSARY TO COMPENSATE LENDER FOR ITS ADDITIONAL ADMINISTRATIVE
COSTS AND INCREASED COSTS RELATING TO BORROWER'S FAILURE TO DELIVER THE
AFOREMENTIONED STATEMENTS, REPORTS OR OTHER ITEMS AS AND WHEN REQUIRED HEREUNDER
AND (II) IS NOT A PENALTY.
Section 2.10
Litigation. Borrower will give prompt written notice to
Lender of any litigation or governmental proceedings pending or threatened (in
writing) against Borrower which might have a Material Adverse Effect.
Section 2.11
Updates of Representations. Borrower shall deliver to
Lender within ten (10) Business Days after the request of Lender an Officer's
Certificate updating all of the representations and warranties contained in this
Agreement and the other Loan Documents and certifying that all of the
representations and warranties contained in this Agreement and the other Loan
Documents, as updated pursuant to such Officer's Certificate, are true, accurate
and complete as of the date of such Officer's Certificate.
Section 2.12
Condominium Provisions. With respect to each Project that
is comprised of condominium units (each such Project, a "Condominium"), Borrower
hereby represents and warrants, and covenants and agrees, as follows:
47
(A)
TO THE BORROWER'S ACTUAL KNOWLEDGE, THE CONDOMINIUM WAS CREATED IN
ACCORDANCE WITH ALL APPLICABLE LAWS (THE "CONDOMINIUM ACT") BY DECLARATION OF
CONDOMINIUM RECORDED IN THE REAL ESTATE RECORDS OF THE COUNTY IN WHICH SUCH
PROJECT IS LOCATED (THE "DECLARATION"). A BOARD OF MANAGERS (THE "BOARD OF
MANAGERS") GOVERNS THE CONDOMINIUM PURSUANT TO THE BY-LAWS OF THE CONDOMINIUM
(THE "BY-LAWS"), WHICH HAVE BEEN DULY RECORDED IN SAID REAL ESTATE RECORDS. ALL
OF THE CONDOMINIUM UNITS ARE OWNED SOLELY BY THE BORROWER AND NO OTHER PERSON
HAS ANY INTEREST IN SUCH UNITS OR THE CONDOMINIUM COMMON AREAS.