Draft_October 2025_West Orange_HEFSP_with Appendices

rental income. The Owner shall carry fidelity bond insurance covering all employees of the Owner authorized to handle the revenues derived from the Project in an amount equal to one-half times the maximum monthly rent roll. Section 1f. Taxes or Payments in Lieu of Taxes. Unless the Owner has reccived a full tax exemption Jor the taxes on the Project at the time the Owner takes tile to the Project, the Owner covenants and agrees to pay any valid municipal taxes, payments in licu of taxes, charyes, assessments, water charges and/or sewer charges. and in default thereof the Agency may pay the same. Any such sum or 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 all 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 title insurance commitments and title insurance commitment nunber 278731 issued by Chicago Title Insurance Company dated March 1, 2010, and cantiqued tg the date of this Agrcement, as accepted by the Agency. Except with the writtcn consent of the Agency, the Owner wil] not install any item of tangible personal property as part of the fixtires. 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 tien, and the Owner shall promptly reimburse the Agericy fot any amounts so paid. Until reimbursement of the Agency of any amounts so paid, such amount shalt 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. fas Section 13. Encumbrances - Sale of Project. Vhe Owner covenants and agrees not to sell. Icase or otherwise cneumber the Project or the Land, or any part thereof, or the rents or revenues thercot without prior written consenf ofthe Agency, except by leasing to eligible residential

o sell. Icase or otherwise cneumber the Project or the Land, or any part thereof, or the rents or revenues thercot without prior written consenf ofthe Agency, except by leasing to eligible residential tenants as provided by the Mortgage and this Agreement. Section 14. Slaitehance, Repair and Replacement. The Owner covenants and agrees to maintain the Praject and the appurtenant equipment and grounds in goad repair and condition so as to provide decent, sate 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 its real or personal property without the consent of the Agency, or make any alteration which will increase the hazard of fire or other casualty.