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50 Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM (b) Notwithstanding the preceding subsection, the Borrower and the Guarantor shall have full recourse and personal liability for, and be subject to, judgments and deficiency decrees arising from and to the extent of any loss or damage suffered or incurred by the Governmental Lender, the Funding Lender, the Controlling Person or the Noteowners as a result of the occurrence of any of the following events: (i) the Borrower fails to pay to the Funding Lender upon demand after an Event of Default all Rents to which the Funding Lender is entitled under Section 2 of the Mortgage and the amount of all security deposits collected by Borrower from tenants then in residence. However, Borrower will not be personally liable for any failure described in this Section 10.13(b)(i) if Borrower is unable to pay to the Funding Lender all Rents and security deposits as required by the Mortgage because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding; (ii) the Borrower fails to apply all insurance proceeds or casualty or condemnation proceeds as required by the Funding Loan Documents. However, Borrower will not be personally liable for any failure described in this Section 10.13(b)(ii) if Borrower is unable to apply insurance or casualty or condemnation proceeds as required by the Funding Loan Documents because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding; (iii) if an Event of Default has occurred and is continuing, the Borrower fails to deliver all books and records relating to the Project Facilities or its operation in accordance with the provisions of Section 6.8 or 6.9 of this Agreement; (iv) the Borrower engages in any willful act of material waste of the Project Facilities; (v) the Borrower or the General Partner fails to comply with any provision of Section 6.11(b) hereof; (vi) the occurrence of any of the following transfers: (A) any Person that is not an Affiliate creates a mechanic’s lien or other involuntary lien or encumbrance against the Project Facilities and Borrower has not complied with the provisions of this Agreement. (B) a transfer of property by devise, descent or operation of law occurs upon the death of a natural person in violation of the requirements set forth in the Funding Loan Documents. (C) the Borrower grants an easement that does not meet the requirements set forth in the Funding Loan Documents. (D) Borrower executes a Lease that does not meet the requirements set forth in the Funding Loan Documents; (vii) any act of fraud or willful misconduct or any criminal act of the Borrower, the General Partner or the Guarantor; (viii) the Borrower’s misappropriation of funds or other Collateral; or