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<br />4. DEFAULT AND REMEDIES. <br /> <br />4.1 Events of Default. The occurrence of anyone or more of the following <br />events shall constitute an event of default hereunder ("Event of Default"): <br /> <br />(a) Borrower fails to pay when due the principal and interest payable <br />under the Predevelopment Note, and such failure continues for ten (10) days <br />after Agency notifies Borrower thereof in writing. <br /> <br />(b) An Event of Default is declared under the DDA, the Ground Lease, <br />the Predevelopment Note or the Assignment Agreement. <br /> <br />(c) Any of Borrower's representations or warranties contained in this <br />Agreement, or made by Borrower in connection with the execution and delivery <br />of this Agreement or in any certificate furnished pursuant hereto, or in connection <br />with any request for disbursement of Loan Proceeds shall prove to have been <br />incorrect when made in any material respect. <br /> <br />(d) Pursuant to or within the meaning of the United States Bankruptcy <br />Code or any other federal or state law relating to insolvency or relief of debtors <br />("Bankruptcy Law"), Borrower or any general partner thereof (i) commences a <br />voluntary case or proceeding; (ii) consents to the entry of an order for relief <br />against Borrower or any general partner thereof in an involuntary case; (iii) <br />consents to the appointment of a trustee, receiver, assignee, liquidator or similar <br />official for Borrower or any general partner thereof; (iv) makes an assignment for <br />the benefit of its creditors; or (v) admits in writing its inability to pay its debts as <br />they become due. <br /> <br />(e) A court of competent jurisdiction enters an order or decree under <br />any Bankruptcy Law that (i) is for relief against Borrower or any general partner <br />thereof in an involuntary case, (ii) appoints a trustee, receiver, assignee, <br />liquidator or similar official for Borrower or any general partner thereof or <br />substantially all of such entity's assets, (iii) orders the liquidation of Borrower or <br />any general partner thereof, or (iv) issues or levies a judgment, writ, warrant of <br />attachment or similar process against the Property or the Project, and in each <br />case the order or decree is not released, vacated, dismissed or fully bonded <br />within 60 days after its issuance. <br /> <br />(f) Borrower fails to maintain insurance as required pursuant to this <br />Agreement, and Borrower fails to cure such default within 10 days. <br /> <br />(g) Borrower fails to use Loan Proceeds in accordance with this <br />Agreement or fails to use Loan Proceeds in accordance with Borrower's request <br />for disbursement. <br /> <br />(h) Borrower defaults in the performance of any term, provision, <br />covenant or agreement contained in this Agreement other than an obligation <br /> <br />809163-1 <br /> <br />7 <br />