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05-27-2026 Council Packet
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05-27-2026 Council Packet
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<br />51 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />(ix) any litigation or other legal proceeding related to the Obligations filed by <br />any of the Borrower, Guarantor, or any of their Affiliates, or any other action of any such <br />Person that delays, opposes, impedes, hinders, enjoins or otherwise interferes with or <br />frustrates the efforts of Funding Lender to exercise any rights and remedies available to <br />Funding Lender provided herein or in the other Funding Loan Documents. <br />(c) The Borrower and the Guarantor shall have full recourse and personal liability for <br />all of the Indebtedness (and the limitation on liability in the first sentence of Section 10.13(a) hereof shall <br />be null and void) as a result of the occurrence of any of the following: <br />(i) a violation of Section 6.11(a), 6.12(b) or 6.13(c) hereof; <br />(ii) the Borrower’s taking any action which adversely affects the exclusion <br />from gross income of interest on the Governmental Note for federal income tax purposes, <br />or the Borrower’s omitting or failing to take any action required to maintain the exclusion <br />from gross income of interest on the Governmental Note for federal income tax purposes; <br />(iii) the Borrower or the General Partner fails to comply with any provision of <br />Section 6.11(b) hereof and a court of competent jurisdiction holds or determines that such <br />failure or combination of failures is the basis, in whole or in part, for the substantive <br />consolidation of the assets and liabilities of the Borrower or the General Partner with the <br />assets and liabilities of a debtor pursuant to Title 11 of the Bankruptcy Code; <br />(iv) a transfer that is an Event of Default under Section 7.1 hereof occurs (other <br />than a transfer described in Section 10.13(b)(vi) above, for which Borrower will have <br />personal liability for any loss or damage); provided, however, that Borrower will not have <br />any personal liability for a transfer consisting solely of the involuntary removal or <br />involuntary withdrawal of the General Partner; <br />(v) there was fraud or written material misrepresentation by the Borrower or <br />any officer, director, partner, member or employee of the Borrower in connection with the <br />application for or creation of the Indebtedness or there is fraud in connection with any <br />request for any action or consent by the Governmental Lender, Funding Lender, <br />Controlling Person or the Noteowners; <br />(vi) the Borrower or the General Partner voluntarily files for bankruptcy <br />protection under the Bankruptcy Code; <br />(vii) the Borrower or the General Partner voluntarily becomes subject to any <br />reorganization, receivership, insolvency proceeding, or other similar proceeding pursuant <br />to any other federal or state law affecting debtor and creditor rights; <br />(viii) the Project Facilities or any part of the Project Facilities becomes an asset <br />in a voluntary bankruptcy or becomes subject to any voluntary reorganization, receivership, <br />insolvency proceeding, or other similar voluntary proceeding pursuant to any other federal <br />or state law affecting debtor and creditor rights; <br />(ix) an order of relief is entered against the Borrower or the General Partner <br />pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor <br />rights in any involuntary bankruptcy proceeding initiated or joined in by an Affiliate of the <br />Borrower or General Partner; or
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