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(i) such minor defects, irregularities, encumbrances, and clouds on title as
<br /> normally exist with respect to property similar in character to the Mortgaged Property and
<br /> as do not, in the opinion of Independent Counsel delivered to the Trustee,materially impair
<br /> the property affected thereby for the purposes of the Mortgaged Property.
<br /> Section 3.3 Hazardous Materials. The Mortgagor covenants, warrants and represents
<br /> to the Mortgagee, its successors and assigns, (i) that to the best of the Mortgagor's knowledge,
<br /> without independent investigation, no dangerous, toxic or hazardous pollutants, chemical wastes
<br /> or substances as defined in the Federal Comprehensive Environmental Response Compensation
<br /> and Liability Act of 1980 ("CERCLA"), or the Federal Resource Conservation and Recovery Act
<br /> of 1976 ("RCRA"), or the Minnesota Environmental Response and Liability Act, (the
<br /> "MERLA"), or any other federal, state or local environmental laws, statutes, regulations,
<br /> requirements and ordinances ("Hazardous Substance") are present on the Mortgaged Property;
<br /> (ii) that, to the best of the Mortgagor's knowledge, no part of the Mortgaged Property is listed in
<br /> the United States Environmental Protection Agency's National Priorities List of Hazardous waste
<br /> Sites or in any list of hazardous waste priorities in the State; (iii) that the Mortgagor shall not store,
<br /> locate,generate,treat or discharge any Hazardous Substance in,on or from the Mortgaged Property
<br /> except for cleaning and janitorial supplies, science class materials (such as chemicals used for
<br /> scientific experiments), and other materials ordinarily used in the operation of a K-12 public
<br /> charter school and in compliance with CERCLA, RCRA, the MERLA, and other applicable
<br /> federal, state or local environmental laws, statutes, regulations, requirements and ordinances
<br /> (collectively, "Environmental Regulations"), as well as materials ordinarily used in motorized
<br /> vehicles; and (iv) that the Mortgagor shall cause all Hazardous Substances found on or in the
<br /> Mortgaged Property (including Hazardous Substances on the Mortgaged Property on the date of
<br /> the issuance and delivery of the Bonds) to be properly removed therefrom and properly disposed
<br /> of to the extent required by and in accordance with all applicable Environmental Regulations and
<br /> shall comply with all applicable Environmental Regulations with respect to the Mortgaged
<br /> Property. Notwithstanding the forgoing, any lessee of the Mortgaged Property shall be permitted
<br /> to park motorized vehicles on or about any parking areas of the Mortgaged Property and within
<br /> any building constituting part of the Mortgaged Property designated for such use. The Mortgagor
<br /> agrees to indemnify and reimburse the Mortgagee, the registered owners of the Bonds, their
<br /> successors and assigns, and any successor owner of the Mortgaged Property acquiring title upon
<br /> foreclosure of the Mortgage or deed in lieu of foreclosure, for any breach of these representations
<br /> and warranties and from any loss, damage, expense or cost arising out of or incurred by them or
<br /> any of them which is a result of a breach, misstatement of or misrepresentation of the above
<br /> covenants, representations and warranties, together with all attorneys' fees incurred in connection
<br /> with the defense of any action against the Mortgagee arising out of the above unless caused by the
<br /> Mortgagee's gross negligence or willful misconduct. Promptly after receipt by a person or party
<br /> indemnified hereunder of notice of commencement of any action in respect of which indemnity
<br /> may be sought against the Mortgagor under this Section, such person or party will notify the
<br /> Mortgagor in writing of the commencement thereof and, subject to the provisions hereinafter
<br /> stated, the Mortgagor shall assume the defense of such action (including the employment of
<br /> counsel, who shall be counsel satisfactory to the Mortgagor and the indemnified person or party)
<br /> insofar as such action shall relate to any alleged liability in respect of which indemnity may be
<br /> sought against the Mortgagor. The indemnified person or party shall have the right to employ
<br /> separate counsel in any such action, and to participate in the defense thereof, but the fees and
<br /> expenses of such counsel shall not be at the expense of the Mortgagor unless the employment of
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