THE SOLE
OWNER OF THE COLLATERAL FREE FROM ANY LIEN, SECURITY INTEREST OR ADVERSE CLAIM
OF ANY KIND WHATSOEVER, EXCEPT FOR LIENS OR SECURITY INTERESTS IN FAVOR OF
LENDER, THE INTEREST OF A LESSOR PURSUANT TO A LEASE OF PERSONAL PROPERTY, ANY
LIENS DISCLOSED IN THE TITLE POLICY, OR LIENS OR SECURITY INTERESTS OTHERWISE
APPROVED BY LENDER IN LENDER'S SOLE DISCRETION.
(J)
CONDEMNATION.
NO CONDEMNATION PROCEEDING OR MORATORIUM IS
PENDING OR, TO THE KNOWLEDGE OF BORROWER, THREATENED AGAINST THE LAND OR THE
IMPROVEMENTS WHICH WOULD IMPAIR ANY CONSTRUCTION, USE, SALE OR OCCUPANCY OF THE
PROPERTY (OR ANY PORTION THEREOF) IN ANY MANNER WHATSOEVER.
(K)
GOVERNMENTAL REGULATIONS.
EXCEPT FOR THE CURRENT BANKRUPTCY,
BORROWER IS NOT SUBJECT TO REGULATION UNDER THE INVESTMENT COMPANY ACT OF 1940,
THE FEDERAL POWER ACT, THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935, THE
INTERSTATE COMMERCE ACT OR ANY FEDERAL OR STATE STATUTE OR REGULATION LIMITING
ITS ABILITY TO INCUR INDEBTEDNESS FOR MONEY BORROWED.
12
(L)
COMPLIANCE WITH ANTI-TERRORISM, EMBARGO, SANCTIONS AND ANTI
MONEY LAUNDERING LAWS.
BORROWER AND, TO BORROWER'S CURRENT KNOWLEDGE, (A) EACH
PERSON OWNING AN INTEREST IN BORROWER AND (B) EACH TENANT AT THE PROPERTY:
(I) IS NOT CURRENTLY IDENTIFIED ON THE OFAC LIST, AND (II) IS NOT A PERSON WITH
WHOM A CITIZEN OF THE UNITED STATES IS PROHIBITED TO ENGAGE IN TRANSACTIONS BY
ANY TRADE EMBARGO, ECONOMIC SANCTION, OR OTHER PROHIBITION OF UNITED STATES LAW,
REGULATION, OR EXECUTIVE ORDER OF THE PRESIDENT OF THE UNITED STATES, INCLUDING,
WITHOUT LIMITATION, ANY ANTI-TERRORISM LAWS.
BORROWER AGREES TO CONFIRM THIS
REPRESENTATION AND WARRANTY IN WRITING ON AN ANNUAL BASIS IF REQUESTED BY LENDER
TO DO SO.
(M)
BROKERS.
BORROWER IS REPRESENTED BY HEALTHWEST REALTY ADVISORS
("BROKER") IN CONNECTION WITH THE MAKING AND ARRANGEMENT OF THE LOAN AND THE
TRANSACTION CONTEMPLATED HEREBY.
OTHER THAN ANY BROKERAGE COMMISSIONS OR FEES
WHICH MAY BE DUE BY BORROWER TO THE BROKER FOR SUCH SERVICES, THERE ARE NO OTHER
BROKERAGE COMMISSIONS OR FINDERS' FEES DUE OR CLAIMED BY ANY PARTY TO BE DUE
FROM BORROWER IN CONNECTION WITH OR WITH RESPECT TO THE TRANSACTION CONTEMPLATED
HEREBY.
BORROWER SHALL BE FULLY RESPONSIBLE FOR ANY COMMISSIONS OR FEES DUE AND
OWING, IF ANY, TO BROKER.
(N)
DEFECTS AND HAZARDS.
BORROWER DOES NOT KNOW OF ANY DEFECTS,
FACTS OR CONDITIONS AFFECTING THE LAND THAT WOULD MAKE IT UNSUITABLE FOR THE USE
CONTEMPLATED HEREUNDER OR OF ANY ABNORMAL HAZARDS (INCLUDING EARTH MOVEMENT OR
SLIPPAGE) AFFECTING THE LAND.
(O)
PERMITS.
BORROWER HAS OBTAINED ALL PERMITS WHICH ARE NECESSARY
FOR THE OPERATION OF THE PROPERTY IN ACCORDANCE WITH ALL APPLICABLE BUILDING,
ENVIRONMENTAL, SUBDIVISION, LAND USE AND ZONING LAWS, INCLUDING ALL PERMITS FOR
THE IMPROVEMENTS, ANNEXATION AGREEMENTS, PLOT PLAN APPROVALS, SUBDIVISION
APPROVALS (INCLUDING THE APPROVAL AND RECORDATION OF ANY REQUIRED SUBDIVISION
MAP), ENVIRONMENTAL APPROVALS (INCLUDING A NEGATIVE DECLARATION OR AN
ENVIRONMENTAL IMPACT REPORT IF REQUIRED UNDER APPLICABLE LAW), SEWER AND WATER
PERMITS AND ZONING AND LAND USE ENTITLEMENTS.
4.2
REPRESENTATIONS AND WARRANTIES OF LENDER.
LENDER REPRESENTS AND
WARRANTS TO BORROWER THAT:
(A)
LEGAL STATUS OF LENDER.
LENDER