Agmt 2006 Allied Housing Program (2)

Home

ARTICLE IV AFFIRMATIVE COVENANTS 4.1 USE OF FUNDS. Borrower covenants that it shall use the Loan Proceeds solely for purpose of financing the Project in accordance with Section 2.1. 4.2 PUNCTUAL PAYMENT. Borrower covenants to punctually pay the principal balance of the Note and interest accrued thereon at the times and place and in the manner specified in the Note. 4.3 PAYMENT OF OTHER INDEBTEDNESS. Borrower covenants to punctually pay all charges, assessments, taxes and fees related to the Property or the Improvements and to punctually pay the principal and interest due on any other indebtedness related to the Property or the Improvements now or hereafter at any time owed by the Borrower to the City or any other lender. 4.4 ACCOUNTING RECORDS: PROPERTY INSPECTION. Borrower covenants to maintain accurate books and records in accordance with standard accounting principles consistently applied, and to permit the City, during business hours and upon reasonable notice to inspect, audit and examine such books and records with respect to the Project, the Property and the Loan and to inspect the Property and the Improvements during normal business hours upon reasonable notice. 4.5 COMPLIANCE WITH LAWS. Borrower covenants to comply with all federal, state and local laws, regulations, ordinances and rules applicable to the Property and the Project. Without limiting the generality ofthe foregoing, Borrower shall comply with all applicable provisions of the California Labor Code, all applicable requirements of state and local building codes and regulations, all applicable Environmental Laws (as defined herein), and all applicable statutes and regulations relating to accessibility for the disabled. 4.6 INSURANCE. Borrower shall maintain and keep in force at Borrower's expense, insurance coverage with respect to the Project and the Property in accordance with the requirements set forth in the City Deed of Trust and the Regulatory Agreement. 4.7 FACILITIES. Borrower shall keep the Property and the Improvements, and the personal property used in Borrower's operations in good repair and condition, and from time to time make necessary repairs, renewals and replacements thereto so that the Property and Improvements shall be preserved and maintained. 4.8 INDEMNIFICATION. Borrower shall indemnify, defend (with counsel reasonably acceptable to City), and hold harmless the Agency, the City, and their respective elected and appointed officials, officers, agents, and employees (collectively the Indemnitees"), from and against, and shall pay on demand, any and all losses, liabilities, damages, costs, claims, demands, penalties, fines, orders, judgments, injunctive or other relief, expenses and charges (including attorneys' fees and expenses) (collectively "Liabilities") arising directly or indirectly in any manner in connection with or as a result of (a) any breach of Borrower's covenants under 818012-3 9