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<br />9 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />Section 4.2 No Liability of Governmental Lender; No Charge Against Governmental Lender’s <br />Credit. Any obligation of the Governmental Lender created by, arising out of, or entered into in <br />contemplation of this Agreement, including the payment of the principal of, premium if any, and interest <br />on the Governmental Note, shall not impose or constitute a debt or pecuniary liability upon the <br />Governmental Lender, the State or any political subdivision thereof or constitute a charge upon the general <br />credit or taxing powers of any of the foregoing. Any such obligation shall be payable solely out of the <br />revenues and any other moneys derived hereunder and under the Funding Loan Agreement, except (as <br />provided in the Funding Loan Agreement and in this Agreement) to the extent it shall be paid out of moneys <br />attributable to the proceeds of the Governmental Note or the income from the temporary investment thereof. <br />No recourse shall be had for the payment of the principal of, premium, if any, or interest on any of the <br />Governmental Note or for any claim based thereon or upon any obligation, covenant or agreement of the <br />Governmental Lender hereunder against any past, present or future director, trustee, officer, member, <br />employee or agent of the Governmental Lender, whether directly or indirectly, and all such liability of any <br />such individual as such is expressly waived and released as a condition of and in consideration for the <br />execution of this Agreement, the making of the loan of the proceeds of the Governmental Note to the <br />Borrower, and the issuance of the Governmental Note. <br />ARTICLE 5 <br /> <br />REPRESENTATIONS AND WARRANTIES OF THE BORROWER <br />The Borrower represents and warrants to and for the benefit of the Governmental Lender, the <br />Funding Lender, the Controlling Person and the Noteowners from time to time of the Governmental Note <br />as follows: <br />Section 5.1 Existence. The Borrower is a limited partnership, duly organized, validly existing <br />and in good standing under the Legal Requirements of the state of its organization and is duly qualified to <br />do business in the State. The Borrower has furnished to the Governmental Lender, the Funding Lender and <br />the Controlling Person true and complete copies of its Partnership Agreement and certificate of limited <br />partnership. The Borrower owns and will own no other assets other than the Project Facilities. The <br />Borrower and the General Partner have been, are and will be engaged solely in the business of acquiring, <br />constructing, equipping, financing, owning, maintaining, managing and operating the Project Facilities and <br />activities incident thereto. The General Partner of the Borrower is a limited liability company, duly <br />organized, validly existing and in good standing under the laws of the State and is duly qualified to do <br />business in the State. The General Partner has furnished to the Governmental Lender, the Funding Lender <br />and the Controlling Person true and complete copies of its Articles of Organization and Operating <br />Agreement. The General Partner has and will have no other assets other than its partnership interests in the <br />Borrower.Power, Authorization and No Conflicts. The Borrower has all requisite power and authority and <br />the legal right to own and operate its properties and to conduct its business and operations as they are <br />currently being conducted and as proposed to be conducted by it. The execution, delivery and performance <br />by the Borrower of this Agreement and the other Funding Loan Documents, the Direct Note and the <br />Subordinate Debt Documents to which the Borrower is a party (i) are within the Borrower’s powers, <br />(ii) have been duly authorized by all necessary company and legal action by or on behalf of the Borrower, <br />and (iii) do not contravene the Partnership Agreement, operating agreement, articles of incorporation, <br />bylaws, or certificate of limited partnership of the Borrower or the General Partner, as applicable, or any <br />Legal Requirement applicable to the Borrower or the General Partner or any Material Contract or restriction <br />binding on or affecting the Borrower, the General Partner or any of their respective assets, or result in the <br />creation of any mortgage, pledge, lien or encumbrance upon any of its assets other than as provided by the <br />terms thereof.