Agmt 2002 Citizens Housing Corporation

Home

Loan Agreement San Leandro and Citizens' Housing Corporation Page 8 of 8 cocaine, and amphetamines, at any City facility or work site. If Developer or any employee of Developer is convicted or pleads nolo contendere to a criminal drug statute violation occurring at a City facility or work site, the Developer within five days thereafter shall notify the head of the City department/agency for which the contract services are performed. Violation of this provision shall constitute a material breach of this Agreement. SECTION 4.16 NOTIGE TO CITY Within 72 hours give notice in writing to City of (1) the occurrence of any event of default; (2) any change in name or address of Developer ar Developer's business location, and in the case of an organization, any change in name, identity or legal structure; or (3} any uninsured or partially uninsured loss through fire, theft, liability, or property damage in excess of an aggregate of Ten Thousand Dollars ($10,000). SECTION 4.17 TAXES AND OTHER LIABILITIES Pay and discharge when due any and all indebtedness, obligations, assessments, taxes real and personal, including federal and state payroll and income taxes, except such as Developer may in good faith contest or as to which a bona fide dispute may arise; provided provision is made to the satisfaction of City for eventual payment thereof in the event that it is found that the same is an obligation of Developer. SECTION 4.18 LITIGATION Within three working days of learning of any litigation pending or threatened in excess of Ten Thousand ($10,000) give notice in writing to City. SECTION 4.19 EXPENSES OF COLLECTION OR ENFORCEMENT If, at any time, the Developer defaults on any provision of this Agreement, pay the City in addition to any other amounts that may be due from the Developer, an amount equal to the costs and expenses of collection, enforcement, or correction, or waiver of the default incurred by the City's rights under this Agreement and the Exhibits incorporated hereto. ARTICLE V: NEGATIVE COVENANTS The Developer covenants and agrees that for the life of the Regulatory Agreement Developer will not, without prior written consent of City: SECTION 5.01 USE OF FUNDS Use any of the proceeds of the Loan except for the purpose(s) stated in Section 1.02 and 1.03 of this Agreement. SECTION 5.02 ENCUMBER THE ACQUISITION ASSETS Create nor suffer to exist any mortgage, lien, charge, or encumbrance. This includes Workers' Compensation, unemployment, Internal Revenue Service, State, local, mechanic, and any other liens of 8