West Orange Township_Fourth Round HEFSP_Final Draft

rental ncome.: The Owner shall carry fidelity bond insurance covering all employees of the Owner authorized to handle the revenucs denved trom the Project in an amount equal to one-half times the maximum monthly reni roll Section 11. Taxes or Payments in Lieu of Faxes. Unless the Owner has received a full tax exemption for the taxes on the Project at the time the Owner takes title to the Project, the Owner covenants and agrees to pay any valid municipal taxes, payments in lieu of taxes, charges. assessments, water charges andor sewer charges, and in default thereof the Agency may pay the same. Any such sur oF sums so paid by the Agency shall be added to the principal sum secured by the Mortgage. as determined by the Agency, and shall bear interest at the then current rate being received by the Agency on its investment as determined in good faith by the Agency. Section 12. Liens. The Owner covenants and agrees to maintain its right, title and interest in the Project and Land and ail items enumerated in Section 7 of the Mortgage free and clear of all liens and security interests. except Permitted Encumbrances, those exceptions identified and set forth in litle insurance commitments and title insurance commitment number 278731 issued by Chicago Title Insurance Company dated March 1, 2010, and cantinued to the date of this Agrecment, as accepted by the Agency. Except with the written consent of the Agency, the Owner will not install any item of tangible personal property as part of the fixtures or furnishings of the Project, which is subject to a purchase money licn or security interest. The Agency may, at its sole option, pay the amount necessary to discharge any such len, and the Owner shall promptly reimburse the Agency for any amounts so paid. Until reimbursement of the Agency of any amounts so paid, such amount shall be added to the Principal Sum as defined in and secured by the Mortgage. as determined by the Agency, and shall bear interest at the then current rate being received by the Agency on its investments as determined in good faith by the Agency. Ye Section 13. Encumbrances - Sale of Project. ‘The Owner covenants and agrees not to sell, lcase or otherwise encumber the Project or the Land, or any part thereof, or the rents or revenues thereof without prior written consent of the Agency. except by leasing to eligible residential tenants as

e or otherwise encumber the Project or the Land, or any part thereof, or the rents or revenues thereof without prior written consent of the Agency. except by leasing to eligible residential tenants as provided by the Mortgage and this Agreement, \ Section 14.\Mainienance, Repair and Replacement. The Owner covenants and agrees to maintain the Project and the appurtenant equipment and grounds in goad repair and condition so as to provide decent, safe and sanitary housing accommodations. Following completion of construction or rehabilitation, the Owner will not make any substantial alteration in the Project without the consent of the Agency, nor will the Owner permit the removal of any fixtures or articles of personal property except in connection with the replacement thereof with appropriate property of at least equal value and free of all liens or claims. The Owner will not permit any waste with respect to the Project or any of tts real or personal property without the consent of the Agency, or make any alteration which will increase the hazard of fire or other casualty.