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<br />contemplated hereby and thereby nor the fulfillment of or compliance with the terms and
<br />conditions hereof and thereof conflicts with or results in a breach of any of the terms, conditions,
<br />or provisions of any agreement or instrument to which the Borrower is now a party or by which it
<br />is bound or constitutes a default (with due notice or the passage of time or both) under any of the
<br />foregoing or results in the creation or imposition of any prohibited lien, charge, or encumbrance
<br />whatsoever upon any of the property or assets of the Borrower under the terms of any instrument
<br />or agreement to which the Borrower is now a party or by which it is bound.
<br />(c) The execution, delivery, and performance of this Regulatory Agreement and all
<br />other documents to be delivered by the Borrower in connection with the consummation of the
<br />transactions contemplated hereby will not conflict with, or constitute a breach of or default under,
<br />any indenture, mortgage, deed of trust, lease, commitment, agreement, or other instrument or
<br />obligation to which the Borrower is a party or by which the Borrower or any of its property is
<br />bound, or under any law, rule, regulation, judgment, order, or decree to which the Borrower is
<br />subject or by which the Borrower or any of its property is bound.
<br />(d) To the best of the Borrower’s knowledge, there is no action, suit, proceeding,
<br />inquiry, or investigation by or before any governmental agency, public board, or body pending or
<br />threatened against the Borrower (nor to the best of its knowledge is there any basis therefor),
<br />which:
<br />(i) affects or seeks to enjoin, prohibit, or restrain the issuance, sale, or delivery
<br />of the Note or the use of the proceeds of the Note to finance the acquisition, construction,
<br />and equipping of the Project or the execution and delivery of this Regulatory Agreement,
<br />(ii) affects or questions the validity or enforceability of the Note or this
<br />Regulatory Agreement,
<br />(iii) questions the tax exempt status of the Note, or
<br />(iv) questions the power or authority of the Borrower to own, acquire, construct,
<br />equip, or operate the Project or to execute, deliver, or perform the Borrower’s obligations
<br />under this Regulatory Agreement.
<br />(e) The Project will be located wholly within the boundaries of the City of Little
<br />Canada, Minnesota.
<br />(f) As of the date on which the Note is executed and delivered to the Funding Lender,
<br />the Borrower will have title to the Land sufficient to carry out the purposes of this Regulatory
<br />Agreement, and the Borrower will not transfer its interest in the Land, except as otherwise
<br />permitted by this Regulatory Agreement.
<br />(g) The Project consists and will consist of those facilities described herein, which
<br />generally are described as a residential apartment building and related facilities situated on the real
<br />property described in EXHIBIT A hereto. The Borrower shall make no changes to the Project or
<br />to the operation thereof which would affect the qualification of the Project under the Act or impair
<br />the exemption from federal income taxation of the interest on the Note. The Borrower will utilize
<br />and operate the Project as a multifamily rental housing project during the term of the Note in
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