West Orange Township_Fourth Round HEFSP_Final Draft

|. incur any habilitics, except in connection with the acquisition, rehabilitation and rental of the Project and its operation and maintenance: 2. engage in any business activity except the ownership and operation of the Project; 3. pay More than fair market valuc thercof for goods or services: and 4, pay compensation to apy officer, director or partner in such capacity or make any cash distribution to any of the foregoing. Section 26. Transfers of Ownership Interests. The Owner shall not transfer or seli any interest in the Projcct, except in accordance with the Agency's regulations governing such transfers. Section 27. Statutory Powers and Restrictions. The Mortgage shal! be subject to the restrictions in the Act and the Program, and in connection therewith, the Agency shall have the powers sct forth in the Act. the Program and the regulations now or hereafter promulgated pursuant to the Act and the Program and the Owner hereby consents to such restrictions and agrees to be bound thereby. Such powers and restrictions shall be in addition to and notin limitation of the rights of the Agency expressly set forth in this Agreement. Section 28. Accounting in Event of Default; Estoppet. Upan the occurrence of an Event of Default and within ten (!0) business days of demand therefore by the Agency, and otherwise within ten (16) business days of wntten demand by the Agency, the Owner will furnish to the Agency in writing a statement of the principal amount remaining due on the Loan, together with a statement of any known defenses whieb | muy exist as to any liability of the Owner on the Notes or otherwise thereunder. 7 7 ‘ Section 29. Financing Statements. The Owner hereby irrevocably authorizes the Agency to execute on its behalf one or more financing statements or renewals thereof in respect to any of the security interests granted by the Mortgage. Section 30/ Assiyament by Agency. The Owner hereby consents to any assignment of any Loan Document by the Agency. \ Section 31. Defaults. Each of the following shall be an Event of Default: (a) failure by the Owner to pay more than thirty (30) calendar days alter the due date any installment of principal or interest on the Loan or any other payment required by the Owner to the Agency or any other person pursuant to the terms of this Agreement, the Mortgage or the other Loan Documents; provided, however, that

rest on the Loan or any other payment required by the Owner to the Agency or any other person pursuant to the terms of this Agreement, the Mortgage or the other Loan Documents; provided, however, that interest shall accrue on any payment made beyond its due date: (b) commission by the Owner of any act prohibited by the terms of this Agreement, the Mortgage or any other Loan Document, failure by the Owner to perform or observe in a timely fashion any action or covenant required by any of the terms of this Agreement, the Mortgage ar any