Agmt 2000 Davis Street Community Center

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SECTION 4.17 LITIGATION Recipient shall within ten working days of learning of any litigation pending or threatened in excess of Twenty Five Thousand Dollars ($25,000) give notice in writing to City. SECTION 4.18 EXPENSES OF COLLECTION OR ENFORCEMENT If, at any time, Recipient defaults on any provision of this Agreement, Recipient shall pay City in addition to any other amounts that may be due from Recipient, an amount equal to the costs and expenses of collection, enforcement, or correction, or waiver of the default incurred by City's rights under this Agreement and the Exhibits incorporated hereto. ARTICLE V: NEGATIVE COVENANTS The Recipient covenants and agrees that for the life of this Agreement Recipient 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 of this Agreement. SECTION 5.02 ENCUMBER THE PROPERTY Create nor suffer to exist any mortgage, lien, charge, or encumbrance, including liens arising from judgments on the property covered in Section 1.02. This includes Workers' Compensation, unemployment, Internal Revenue Service, State, local, mechanic, and any other liens of any type; provided, however, that Recipient shall have 30 days to discharge or provide adequate security for any involuntary lien upon the Property except that which may be required in the ordinary course of business to obtain a line of credit or letters of credit. SECTION 5.03 MERGER, CONSOLIDATION, SALE OF ASSETS Merge into or consolidate with any corporation or other entity, or acquire all or substantially all of the assets of any other corporation or entity; or sell, lease, assign, transfer or otherwise dispose of all or substantially all of Recipient's assets. SECTION 5.04 LOANS, ADVANCES, INVESTMENTS Make any loan or advances to or investments in, any person or entity except those usually made in the ordinary course of business. 8