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05-27-2026 Council Packet
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05-27-2026 Council Packet
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<br />20 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />in the form set forth in Schedule 10 hereto; and (iii) a Stabilization Certificate in the form set forth on <br />Schedule 11 hereto; <br />(m) As soon as possible and in any event within fifteen (15) days after becoming aware <br />of the occurrence of an Event of Default, a statement of the General Partner setting forth the details of such <br />Event of Default and the action which the Borrower proposes to take with respect thereto; <br />(n) Contemporaneously with the delivery to the Funding Lender copies of any notices, <br />reports or other information provided to the Funding Lender under the Funding Loan Documents; and <br />(o) Copies of IRS Form 8609 as issued and received by the Borrower; and <br />(p) Upon receipt thereof, copies of all real estate tax bills and insurance bills; and <br />(q) Upon receipt thereof, copies of all bills for Governmental Lender Fees or Fiscal <br />Agent Fees and, upon payment, evidence of payment of such fees; and <br />(r) Promptly following filing thereof, all tax returns of the Borrower and, if requested <br />by the Controlling Person, the General Partner; and <br />(s) Such other information respecting the operations and properties, financial or <br />otherwise, of the Borrower as the Controlling Person may from time to time reasonably request. <br />Section 6.10 Tax-Exempt Status. <br />(a) The Borrower covenants, represents and agrees that it will not take or omit to take <br />or permit any action that, if taken or omitted, respectively, would adversely affect the exclusion of interest <br />on the Governmental Note from gross income for federal income tax purposes and, if it should take or <br />permit any such action, the Borrower will take all lawful actions that it can take to rescind such action <br />promptly upon having knowledge thereof and that the Borrower will take such action or actions, including <br />amendment of this Agreement, the Mortgage, the Tax Certificate and the Regulatory Agreement, as may <br />be necessary, in the opinion of Bond Counsel, to comply fully with all applicable rules, rulings, policies, <br />procedures, regulations or other official statements promulgated or proposed by the Department of the <br />Treasury or the Internal Revenue Service applicable to the Governmental Note or affecting the Project <br />Facilities. <br />(b) The Borrower will not make or permit any use, and will not direct the Fiscal Agent <br />and/or the Funding Lender to make any investment or use of the proceeds of any of the Governmental Note, <br />which would cause any of the Governmental Note to be an “arbitrage bond” within the meaning of Section <br />148 of the Code and the Regulations thereunder as the same may be applicable to the Governmental Note <br />at the time of such action, investment or use and agrees to take and cause the Governmental Lender and <br />Fiscal Agent to take all actions required to comply with the provisions of Section 148 of the Code. The <br />representations contained in the Tax Certificate (which is incorporated herein by reference) are true and <br />correct, and the Borrower and the Governmental Lender will observe the applicable covenants therein as if <br />set forth herein. <br />(c) The Borrower further covenants and agrees that it will comply with and will take <br />all action reasonably required to ensure that the Fiscal Agent complies with all applicable requirements of <br />said Section 148 and the rules and regulations of the United States Treasury Department thereunder relating <br />to the Governmental Note and the interest thereon, including the employment of a Rebate Analyst for the <br />calculation of any rebatable amount (the “Rebate Amount”) to the United States Treasury Department. The
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