Agenda - Council - 03/24/2015 - Laserfiche WebLink

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Documents are legal, valid and binding obligations of Borrower, the Corporate Guarantor and the Personal Guarantor, and the Loan Documents are enforceable against Borrower, the Corporate Guarantor and the Personal Guarantor (as the case may be) in accordance with their respective terms. Section 5.4 Compliance with Laws. To the best of Borrower's actual knowledge, no violation of any law, ordinance, regulation or requirement exists with respect to the Project, and Borrower and Developer are in compliance with all other laws, ordinances, regulations and requirements where the failure to comply would reasonably be expected to have a material adverse effect on Borrower and Developer, their activities or their financial condition. Section 5.5 Pending Actions. There are no material actions, suits or proceedings pending, or to the knowledge of the Borrower, threatened against or affecting the Developer, Borrower, or the Project, and neither Developer nor Borrower is in default with respect to any order, writ, injunction, decree or demand of any court or any governmental authority. Section 5.6 No Breach. The consummation of the transaction contemplated hereby and performance of this Loan Agreement, the Loan Documents, and all other documents executed and delivered in connection herewith will not result in any breach of, or constitute a default under, any mortgage, deed of trust, lease, bank loan or credit agreement, partnership agreement or other instrument to which Developer, Borrower, the Corporate Guarantor or the Personal Guarantor is a party, or by which the Developer, Borrower, the Corporate Guarantor or the Personal Guarantor may be bound or affected. Section 5.7 No Event of Default. No Default or Event of Default has occurred and is continuing as of the date hereof. Section 5.8 Use of Loan Funds. Borrower will use the proceeds of the Loans solely to finance the development and construction of the Housing Development Project. Section 5.9 Need for Loans. Developer and Borrower would not undertake the Project without the assistance of the HRA in providing the Loans. ARTICLE VI AFFIRMATIVE AND NEGATIVE COVENANTS Borrower hereby covenants and agrees with the HRA that for so long as the HRA has any obligation to make Advances hereunder or any amount remains unpaid on any indebtedness of Borrower to the HRA hereunder, Borrower will: Section 6.1 Books, Records and Inspections. Maintain complete and accurate books and records; permit, and cause Developer and the Corporate Guarantor to permit, reasonable access by the HRA to the books and records of Borrower, Developer and the Corporate Guarantor; and permit the HRA to inspect the Project and other operations of Developer, Borrower and the Corporate Guarantor. C-2-12 2695614v16