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of prepayment. Prepayments shall be applied first to accrued but unpaid interest and then to
<br />principal. Any such prepayment shall have no effect upon Developer's obligations under the
<br />Regulatory Agreement which shall survive for the full term of the Regulatory Agreement.
<br />(b) Due On Sale or Encumbrance. Unless Agency agrees otherwise in
<br />writing, the entire unpaid principal balance and all interest and other sums accrued under the
<br />Note shall be due and payable upon the Transfer absent the prior written consent of Agency of
<br />all or any part of or interest in the Property except as otherwise permitted pursuant to this
<br />Agreement.
<br />4.8 Nonrecourse. Except as expressly provided in Section 3.9 of the Predevelopment
<br />Note and Section 3.9 of the Note, the Predevelopment Note and the Note shall be non-recourse to
<br />Developer.
<br />ARTICLE V
<br />USE OF THE PROPERTY
<br />5.1 Use; Affordable Housing. Developer covenants and agrees for itself and its
<br />successors and assigns that upon Developer's acquisition of a leasehold interest therein, the
<br />Property shall be used for the development and operation of amulti-family residential project
<br />which may also include commercial space such as a daycare center, in accordance with the terms
<br />and conditions of this Agreement and the Regulatory Agreement.
<br />5.2 Maintenance. Developer shall at its own expense, maintain the Property, the
<br />Improvements and related landscaping and common areas in good physical condition, in good
<br />repair, and in decent, safe, sanitary, habitable and tenantable living conditions in conformity with
<br />all applicable state, federal, and local laws, ordinances, codes, and regulations. Without limiting
<br />the foregoing, Developer agrees to maintain the Project and the Property (including without
<br />limitation, the residential units, common areas, landscaping, driveways, parking areas, and
<br />walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping, graffiti,
<br />disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all reasonable steps
<br />to prevent the same from occurring on the Property or at the Project. Developer shall prevent
<br />and/or rectify any physical deterioration of the Property and the Project and shall make all
<br />repairs, renewals and replacements necessary to keep the Property and the improvements
<br />located thereon in good condition and repair. Developer shall provide adequate security for
<br />occupants of the Project. The provisions of this Section 5.2 shall apply from and after
<br />Developer's acquisition of a leasehold interest in the Property.
<br />5.3 Taxes and Assessments. From and after Developer's acquisition of a leasehold
<br />interest in the Property, Developer shall pay all real and personal property taxes, assessments and
<br />charges and all franchise, income, payroll, withholding, sales, and other taxes assessed against
<br />the Property and payable by Developer, at such times and in such manner as to prevent any
<br />penalty from accruing, or any lien or charge from attaching to the Property; provided, however,
<br />that Developer shall have the right to contest in good faith, any such taxes, assessments, or
<br />charges. In the event the Developer exercises its right to contest any tax, assessment, or charge,
<br />the Developer, on final determination of the proceeding or contest, shall immediately pay or
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