11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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ARTICLE V PROJECT FACILITIES Section 5.01 Use of Project Facilities;Compliance with Laws. The Borrower will use the Project Facilities and all Mortgaged Property only in furtherance of its lawful purposes and will cause the Project Facilities to be used and operated as required by the Act. The Borrower will not use or permit any person to use the Project Facilities or the Mortgaged Property for any use or purpose in violation of the laws of the United States,the State,or any ordinance of the City,and agrees to comply with all the orders,rules,regulations and requirements of the City,the County or the State or other governmental authority having jurisdiction over the Project Facilities. The Borrower shall have the right to contest by appropriate legal proceedings, without cost or expense to the City, the validity of any law,ordinance, order,rule,regulation or requirement of the nature herein referred to. Section 5.02 Ownership,Maintenance,Operation and Disposition of Project Facilities by Borrower. The Borrower agrees that so long as the Bonds are Outstanding,the Borrower will keep or cause to be kept the Project Facilities and the Mortgaged Property in good repair and good operating condition (ordinary wear,tear,and obsolescence and acts of God being excepted)at its own cost,making such repairs and replacements as are necessary to that end. The Borrower shall provide all equipment,furnishings,supplies and other personal property required or convenient for the proper operation, repair and maintenance of the Project Facilities and Mortgaged Property in an economical and efficient manner, consistent with the then current standards of operation and administration generally acceptable for facilities such as the Project Facilities located in the State. The Borrower shall: (a) use the Project Facilities only in a manner that is consistent with the Sole Member's status as a 501(c)(3)Organization and, except as it shall not impair the exclusion from gross income of interest on any Tax-Exempt Bonds,not use or allow the use of the Project Facilities in any unrelated trade or business with respect to the Sole Member(or any other 501(c)(3)Organization)under Section 513(a)of the Code; and (b) not use the Project Facilities or any part thereof for sectarian instruction nor use the Project Facilities primarily as a place of religious worship or as a facility used primarily as a part of a program of a school or department of divinity for any religious denomination or the religious training of ministers,priests,rabbis or other similar persons in the field of religion. The Borrower represents that it has no present intention to sell, lease or otherwise dispose of any interest in the Project Facilities,other than to lease units in the Project Facilities to residents in the ordinary course of business. Furthermore,the Borrower shall not sell or dispose of all or any portion of the Project Facilities or the Mortgaged Property except as permitted in Sections 5.06, 5.07, 5.08 and 6.04. So long as any Tax-Exempt Bonds are outstanding and no Default or Event of Default has occurred and exists,the Borrower may sell all or any part of the Project Facilities to or enter into a lease of all or any part of the Project Facilities so long as: -29-