Agmt 1999 San Leandro Shelter for Women and Children

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SECTION 2.06 SUBORDINATION AND ASSIGNMENT City's security interest shall not be subordinated to any other lien or security instrument, except by written consent of City. The Recipient may assign this Agreement and all obligations thereto to any nonprofit corporation, subject to the approval of the Development Services Director. SECTION .07 TAXES. Recipient has filed any required tax returns and has paid and agrees to continue to pay in full in a timely manner all taxes or assessments which have or may become due pursuant to said returns or pursuant to any assessments levied against Recipient or its personal or real property by any taxing agency, federal, state, or local. No tax liability has been assessed by the Internal Revenue Service or other taxing agency, federal, state or local, for taxes materially in excess of those already provided for and the Recipient knows of no basis for any such deficiency assessment. SECTION 2.08 PERMITS, FRANCHISES Recipient possesses, and will hereafter possess, all permits, memberships, franchises, contracts, and licenses required and all trademark rights, trade name rights, patents, patent rights, and fictitious name rights necessary to enable it to conduct the business in which it is now engaged without conflict with the rights of others. SECTION 2.09 EVIDENCE OF PROJECT FUNDING Before disbursement of the Loan funds, Recipient shall submit to City acceptable evidence of financing for the acquisition of the property. SECTION 2.10 LENDER STATUS Recipient recognizes and agrees that City is not a commercial lending institution, but a municipal corporation exercising its authority to protect the health, safety and welfare. Any duties or obligations which a commercial lending institution may have with Recipient shall not apply to this transaction except as set forth herein and in the Loan Documents. 4