A
SEPARATE TAX LOT AND NONE OF WHICH CONSTITUTES A PORTION OF ANY OTHER TAX LOT.
(I)
NO PRIOR ASSIGNMENT.
LENDER IS THE
COLLATERAL ASSIGNEE OF BORROWER'S INTEREST UNDER THE LEASES.
THERE ARE NO PRIOR
ASSIGNMENTS OF THE LEASES OR ANY PORTION OF THE RENT DUE AND PAYABLE OR TO
BECOME DUE AND PAYABLE WHICH ARE PRESENTLY OUTSTANDING.
(J)
PERMITS; CERTIFICATE OF OCCUPANCY.
BORROWER HAS OBTAINED ALL PERMITS NECESSARY TO THE USE AND OPERATION OF EACH
MORTGAGED PROPERTY, EXCEPT FOR NONCOMPLIANCE WHICH CANNOT REASONABLY BE EXPECTED
TO RESULT IN A MATERIAL ADVERSE EFFECT.
THE USE BEING MADE OF EACH MORTGAGED
PROPERTY IS IN CONFORMITY WITH THE CERTIFICATE OF OCCUPANCY AND/OR SUCH PERMITS
FOR SUCH MORTGAGED PROPERTY AND ANY OTHER RESTRICTIONS, COVENANTS OR CONDITIONS
AFFECTING SUCH MORTGAGED PROPERTY, EXCEPT FOR NONCOMPLIANCE WHICH CANNOT
REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE EFFECT.
(K)
FLOOD ZONE.
EXCEPT AS SHOWN ON THE SURVEY,
NO MORTGAGED PROPERTY OR ANY PORTION THEREOF IS LOCATED IN A FLOOD HAZARD AREA
AS DEFINED BY THE FEDERAL INSURANCE ADMINISTRATION.
(L)
PHYSICAL CONDITION.
EXCEPT AS SET FORTH
IN THE PROPERTY CONDITION ASSESSMENT, TO THE BEST KNOWLEDGE OF BORROWER, EACH
MORTGAGED PROPERTY IS FREE OF STRUCTURAL DEFECTS AND ALL IMPROVEMENTS, INCLUDING
THE BUILDING SYSTEMS CONTAINED THEREIN ARE IN GOOD WORKING ORDER SUBJECT TO
ORDINARY WEAR AND TEAR.
(M)
SECURITY DEPOSITS.
BORROWER AND THE MANAGER
ARE IN COMPLIANCE IN ALL MATERIAL RESPECTS WITH ALL LEGAL REQUIREMENTS RELATING
TO ALL SECURITY DEPOSITS WITH RESPECT TO EACH MORTGAGED PROPERTY.
(N)
INTELLECTUAL PROPERTY.
ALL MATERIAL
INTELLECTUAL PROPERTY THAT BORROWER OWNS OR HAS PENDING, OR UNDER WHICH IT IS
LICENSED, ARE IN GOOD STANDING AND UNCONTESTED.
THERE
64
IS NO RIGHT UNDER ANY INTELLECTUAL PROPERTY NECESSARY TO THE BUSINESS OF
BORROWER AS PRESENTLY CONDUCTED OR AS BORROWER CONTEMPLATES CONDUCTING ITS
BUSINESS.
BORROWER HAS NOT INFRINGED, IS NOT INFRINGING, AND HAS NOT RECEIVED
NOTICE OF INFRINGEMENT WITH RESPECT TO ASSERTED INTELLECTUAL PROPERTY OF
OTHERS.
THERE IS NO INFRINGEMENT BY OTHERS OF MATERIAL INTELLECTUAL PROPERTY OF
BORROWER.
(O)
NO ENCROACHMENTS.
EXCEPT AS SHOWN ON THE
SURVEY, TO THE BEST KNOWLEDGE OF BORROWER, (I) ALL OF THE IMPROVEMENTS WHICH
WERE INCLUDED IN DETERMINING THE APPRAISED VALUE OF EACH MORTGAGED PROPERTY LIE
WHOLLY WITHIN THE BOUNDARIES AND BUILDING RESTRICTION LINES OF EACH MORTGAGED
PROPERTY, (II) NO IMPROVEMENTS ON ADJOINING PROPERTIES ENCROACH UPON ANY
MORTGAGED PROPERTY, (III) NO IMPROVEMENTS ENCROACH UPON ANY EASEMENTS OR OTHER
ENCUMBRANCES AFFECTING THE MORTGAGED PROPERTY, AND (IV) ALL OF THE IMPROVEMENTS
COMPLY WITH ALL MATERIAL REQUIREMENTS OF ANY APPLICABLE ZONING AND SUBDIVISION
LAWS AND ORDINANCES.
(P)
MANAGEMENT AGREEMENT.
THE MANAGEMENT
AGREEMENT IS IN FULL FORCE AND EFFECT.
THERE IS NO DEFAULT, BREACH OR VIOLATION
EXISTING THEREUNDER BY BORROWER OR, TO THE BEST KNOWLEDGE OF BORROWER, ANY OTHER
PARTY THERETO AND NO EVENT (OTHER THAN PAYMENTS DUE BUT NOT YET DELINQUENT)
WHICH, WITH THE PASSAGE OF TIME OR WITH NOTICE AND THE EXPIRATION OF ANY GRACE
OR CURE PERIOD, WOULD CONSTITUTE A DEFAULT, BREACH OR VIOLATION BY BORROWER OR,
TO THE BEST KNOWLEDGE OF