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<br />24 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />(e) The Borrower shall implement a moisture management and control program (the <br />“Moisture Management Program”) for the Improvements at the Project Facilities to prevent the occurrence <br />of mold, dangerous fungi, bacterial or microbial matter contamination or pathogenic organisms that <br />reproduces through the release of spores or the splitting of cells (collectively, “Mold”), at, on or under the <br />Project Facilities, which Moisture Management Program shall include, at a minimum: (a) periodic <br />inspections of the Improvements at the Project Facilities for Mold, (b) removing or cleaning up any Mold <br />and in a manner consistent with best industry practices and utilizing an experienced remediation contractor <br />acceptable to and approved by the Controlling Person, and (c) in the event that the Mold identified at the <br />Improvements at the Project Facilities cannot be removed or cleaned from any impacted building materials <br />(e.g., porous materials such as carpeting, certain types of ceiling materials, etc.) and/or equipment, <br />removing all such impacted building materials and/or equipment from the Project Facilities, all in <br />accordance with the procedures set forth in the United States Environmental Protection Agency’s (“EPA”) <br />guide entitled “Mold Remediation in Schools and Commercial Buildings”, EPA No. 402-K-01-001, dated <br />March 2001 and in a manner consistent with best industry practices and utilizing an experienced <br />remediation contractor acceptable to and approved by the Controlling Person. The Borrower shall include <br />as part of every residential lease a Mold/Mildew Addendum in the form attached hereto as Exhibit C. The <br />Borrower further covenants and agrees that, in connection with any mold remediation undertaken by or on <br />behalf of the Borrower hereunder, the source (e.g., leaking pipe, water damage, water infiltration, etc.) of <br />any Mold at the Improvements at the Project Facilities shall be promptly identified and corrected to prevent <br />the occurrence or re-occurrence of any Mold. <br />(f) Upon the occurrence of an Event of Default, or if the Controlling Person has reason <br />to believe that there has occurred and is continuing a violation of Environmental Law or that there exists a <br />condition that could reasonably expect to give rise to any Governmental Action, the Controlling Person <br />may, at its discretion, commission an investigation at the Borrower’s expense of (i) compliance at the <br />Project Facilities with Environmental Laws, (ii) the presence of Hazardous Substances or Contamination at <br />the Project Facilities, (iii) the presence at the Project Facilities of materials which are described in clause <br />(b) of Section 5.12, (iv) the presence at the Project Facilities of Environmentally Sensitive Areas, (v) the <br />presence at the Project Facilities of radon products, (vi) the presence at the Project Facilities of tanks of the <br />type described in paragraph (e) of Section 5.12 or in paragraph (d) of Section 6.14 above, or (vii) the <br />presence of Mold at the Project Facilities. In connection with any investigation pursuant to this paragraph, <br />the Borrower, and its lessees, sub-lessees and assigns, will comply with any reasonable request for <br />information made by the Controlling Person or its agents in connection with any such investigation. Any <br />response to any such request for information will be full and complete. The Borrower will assist the <br />Controlling Person and its agents to obtain any records pertaining to the Project Facilities or to the Borrower <br />and the lessees, sub-lessees or assigns of the Borrower in connection with an investigation pursuant to this <br />paragraph. The Borrower will permit the Controlling Person and its agents access to all areas of the Project <br />Facilities at reasonable times and in reasonable manners in connection with any investigation pursuant to <br />this paragraph. No investigation commissioned pursuant to this paragraph shall relieve the Borrower from <br />any responsibility for its representations and warranties under Section 5.12 hereof or under the <br />Environmental Indemnity Agreement. <br />(g) In the event of any Contamination affecting the Project Facilities, whether or not <br />the same originates or emanates from the Project Facilities or any contiguous real estate, or if the Borrower <br />otherwise shall fail to comply with any of the requirements of Environmental Laws, the Controlling Person <br />may, at its election, but without the obligation so to do, give such notices, cause such work to be performed <br />at the Project Facilities and take any and all other actions as the Controlling Person shall deem necessary <br />or advisable in order to remedy said Contamination or cure said failure of compliance and any amounts <br />paid as a result thereof, together with interest thereon at the Default Rate from the date of payment by the <br />Controlling Person, shall be immediately due and payable by the Borrower and until paid shall be added to <br />and become a part of the Indebtedness and shall have the benefit of the lien hereby created as a part thereof