IN ITS SOLE DISCRETION, TOGETHER WITH
COMPLETE COPIES OF ALL EXISTING ENVIRONMENTAL AND HAZARDOUS MATERIAL STUDIES AND
REPORTS, AND ANY DISCLOSURE DOCUMENT REQUIRED PURSUANT TO THE LAWS OF THE STATE
WHERE THE PROPERTY IS LOCATED.
(R)
LICENSES AND PERMITS.
A CERTIFICATE OF OCCUPANCY FOR THE
PROPERTY.
PRIOR TO THE CLOSING DATE, BORROWER SHALL PROVIDE LENDER WITH
SATISFACTORY EVIDENCE THAT BORROWER HAS OBTAINED ALL PERMITS AND GOVERNMENTAL
APPROVALS NECESSARY FOR CONVERSION OF THE PROJECT, EXCEPT FOR PERMITS REQUIRED
FOR THE UPGRADES TO EACH UNIT, INCLUDING APPROPRIATE BUILDING PERMITS, AND
APPLICATION FOR PERMITS FOR THE PROJECT ISSUED BY THE APPROPRIATE GOVERNMENTAL
AUTHORITIES.
(S)
ZONING.
EVIDENCE, IN THE FORM OF A ZONING ENDORSEMENT AND LETTERS
OR APPROVALS FROM ANY GOVERNMENTAL AUTHORITIES HAVING JURISDICTION OVER THE
ZONING OF THE PROPERTY, CONFIRMING THAT THE DEVELOPMENT AND PLANNED USE OF THE
PROJECT IS IN COMPLIANCE WITH ALL APPLICABLE ZONING LAWS AND OTHER APPLICABLE
GOVERNMENTAL APPROVALS.
(T)
UTILITIES.
EVIDENCE THAT ALL SEWER, WATER, ELECTRICAL, TELEPHONE
AND ANY OTHER UTILITY SERVICES ARE AVAILABLE AT THE PROPERTY IN ADEQUATE SUPPLY
FOR THE PROJECT.
THIS EVIDENCE SHALL INCLUDE LETTERS FROM THE APPLICABLE
UTILITY PROVIDERS.
(U)
MANAGEMENT AGREEMENT.
A TRUE CORRECT AND COMPLETE COPY OF THE
MANAGEMENT AGREEMENT, TOGETHER WITH A SUBORDINATION OF THE MANAGEMENT AGREEMENT
IN FORM AND SUBSTANCE ACCEPTABLE TO LENDER.
(V)
AGREEMENTS. COPIES OF ALL BASIC AGREEMENTS AND ANY OTHER
DEVELOPMENT, REDEVELOPMENT, RECIPROCAL EASEMENT OR OTHER MATERIAL AGREEMENTS
RELATING TO THE PROPERTY CERTIFIED BY BORROWER.
(W)
WETLANDS COMPLIANCE. EVIDENCE THAT ANY "WETLANDS" ON THE LAND HAVE
BEEN IDENTIFIED, AND THAT ANY SUCH WETLANDS WILL BE PRESERVED, REPLACED OR
OTHERWISE DEALT WITH IN COMPLIANCE WITH ALL GOVERNMENTAL APPROVALS.
(X)
TAX BILL.
A COPY OF THE MOST RECENT REAL ESTATE TAX BILLS FOR
THE PROPERTY.
(Y)
IRS FORM.
AN INTERNAL REVENUE SERVICE TAX RETURN VERIFICATION
FORM (FORM 4506T) EXECUTED BY BORROWER AND GUARANTOR.
(Z)
FORM OF CONDOMINIUM CONTRACT.
LENDER SHALL HAVE RECEIVED AND
APPROVED THE FORM OF CONDOMINIUM CONTRACT TO BE USED FOR THE PROPERTY, WHICH
SHALL BE ATTACHED HERETO AS EXHIBIT G.
(AA)
BORROWER'S EQUITY.
EVIDENCE THAT BORROWER HAS INVESTED BORROWER'S
MINIMUM EQUITY INVESTMENT.
(BB)
PROJECT BUDGET.
THE PROJECT BUDGET.
THE PROJECT BUDGET SHALL NOT
CONTAIN ANY LINE ITEMS PAYABLE TO BORROWER, GUARANTOR OR ANY AFFILIATE OF
BORROWER OR GUARANTOR, EXCEPT FOR
12
the Production Overhead line item in the amount of $392,000.
Borrower warrants
that, except as set forth in the preceding sentence, no other Advances of the
Loan shall be made to any Affiliates of Borrower or Guarantor.
(CC)
PRICE LIST.
BORROWER SHALL HAVE PROVIDED LENDER WITH THE PRICE
LIST, WHICH MUST BE ACCEPTABLE TO LENDER IN ITS REASONABLE DISCRETION. APPROVAL
OF THE PRICE LIST WILL BE PREDICATED ON LENDER'S EVALUATION AND OPINION, IN ITS
REASONABLE DISCRETION, OF THE REASONABLENESS OF THE PROPOSED PRICES, PROVIDED
THAT THE PROPOSED PRICES MUST AVERAGE AT LEAST $300 PER NET SALEABLE SQUARE
FOOT, EXCLUDING ANY UPGRADES AND/OR EXTRAS, IN THE PROJECT.
NO REDUCTION TO THE
PRICE LIST SHALL BE MADE WITHOUT LENDER'S PRIOR WRITTEN APPROVAL IF THE RESULT
OF SUCH