06-08-2022 Council Packet - Laserfiche WebLink

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73505919v2 14 provided, however, that the execution and delivery of such instruments shall not be necessary or a prerequisite to the termination of this Regulatory Agreement in accordance with its terms. Section 12. Burden and Benefit. The Governmental Lender and the Borrower hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the Land in that the Borrower’s legal interest in the Project is rendered less valuable thereby. The Governmental Lender and the Borrower hereby further declare their understanding and intent that the benefit of such covenants touch and concern the Land by enhancing and increasing the enjoyment and use of the Project by Low Income Tenants, the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which the Note was issued. Notwithstanding the foregoing, the Low Income Tenants are not intended to be third party beneficiaries of this Regulatory Agreement and shall have no rights to enforce any provision herein. Section 13. Enforcement. If the Borrower defaults in the performance or observance of any covenant, agreement, or obligation of the Borrower set forth in this Regulatory Agreement, and if such default remains uncured for a period of 60 days after written notice thereof shall have been given by the Governmental Lender or the Fiscal Agent to the Borrower, then the Governmental Lender or the Fiscal Agent, acting upon the direction of the Funding Lender pursuant to the Funding Loan Agreement, may declare an “Event of Default” to have occurred hereunder and, at its option, may take any one or more of the following steps: (a) by mandamus or other suit, action, or proceeding at law or in equity require the Borrower to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of the rights of the Governmental Lender, the Funding Lender or the Fiscal Agent hereunder; (b) have access to and inspect, examine, and make copies of all the books and records of the Borrower pertaining to the Project; (c) take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants, and agreements of the Borrower hereunder; or (d) the Fiscal Agent only (acting upon the direction of the Funding Lender), may declare a default under the Loan, accelerate the indebtedness evidenced by the Loan, and proceed to redeem the Note in accordance with its terms. Notwithstanding anything to the contrary contained herein, the Governmental Lender and the Fiscal Agent hereby agree that any cure of any default made or tendered by one or more of the Borrower’s partners or by the Funding Lender shall be deemed to be a cure by Borrower and shall be accepted or rejected on the same basis as if made or tendered by Borrower. All fees, costs, and expenses of the Fiscal Agent or the Governmental Lender incurred in taking any action pursuant to this Section 13 shall be the sole responsibility of the Borrower and shall be paid to the Fiscal Agent or the Governmental Lender, as the case may be, on demand. After the Note has been discharged, the Governmental Lender may act on its own behalf to declare an “Event of Default” to have occurred and to take any one or more of the steps specified