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• <br /> 8 <br /> 4. Non-Monetary Default. If a non-monetary event of default occurs under the <br /> terms of any of the Loan Documents, prior to exercising any remedies thereunder Lender shall <br /> give Borrower and each of partner of the Partnership, as identified in the Partnership <br /> Agreement, simultaneous written notice of such default. If the default is reasonably capable of <br /> being cured within thirty (30) days, Borrower shall have such period to effect a cure prior to <br /> exercise of remedies by Lender under the Loan Documents, or such longer period of time as <br /> may be specified in the Loan Documents. If the default is such that it is not reasonably capable <br /> of being cured within thirty (30) days or such longer period if so specified, and if Borrower (a) <br /> initiates corrective action within said period, and (b) diligently, continually, and in good faith works <br /> to effect a cure as soon as possible, then Borrower shall have such additional time as is <br /> reasonably necessary to cure the default prior to exercise of any remedies by Lender. If <br /> Borrower fails to take corrective action or to cure the default within a reasonable time, Lender <br /> shall give Borrower and each of partner of the Partnership, as identified in the Partnership <br /> Agreement written notice thereof, whereupon the investor limited partner may remove and <br /> replace the general partner with a substitute general partner who shall effect a cure within a <br /> reasonable time thereafter in accordance with the foregoing provisions. In no event shall Lender <br /> be precluded from exercising remedies if its security becomes or is about to become materially <br /> jeopardized by any failure to cure a default or the default is not cured within one hundred eighty <br /> (180) days after the first notice of default is given, or such longer period of time as may be <br /> specified in the Loan Documents. <br /> 5. Casualty, Condemnation, Etc. In the event of any fire or other casualty to the <br /> Project or eminent domain proceedings resulting in condemnation of the Project or any part <br /> thereof, Borrower shall have the right to rebuild the Project, and to use all available insurance or <br /> condemnation proceeds therefor, PROVIDED that (a) such proceeds are sufficient to keep the <br /> Loan in balance and rebuild the Project in a manner that provides adequate security to Lender <br /> for repayment of the Loan or if such proceeds are insufficient then Borrower shall have funded <br /> any deficiency, (b) Lender shall have the right to approve plans and specifications for any major <br /> rebuilding and the right to approve disbursements of insurance or condemnation proceeds for <br /> rebuilding under a construction escrow or similar arrangement, and (c) no material default then <br /> exists under the Loan Documents. If the casualty or condemnation affects only part of the <br /> Project and total rebuilding is infeasible, then proceeds may be used for partial rebuilding and <br /> partial repayment of the Loan in a manner that provides adequate security to Lender for <br /> repayment of the remaining balance of the Loan. <br /> 6. Force Majeure. There shall be no default for construction or rehabilitation delays <br /> beyond the reasonable control of Borrower, PROVIDED that such delays do not exceed one <br /> hundred eighty (180) days, or such longer period of time as may be specified in the Loan <br /> Documents. <br /> 7. Purchase Rights. The execution and delivery of the purchase option and right of <br /> first refusal agreement described in the Partnership Agreement shall not constitute a default <br /> under the Loan Documents or accelerate the maturity of the Loan thereunder. Any requisite <br /> consent of Lender to (a) the exercise of said purchase option and right of first refusal agreement <br /> by the project sponsor identified therein, and to (b) the assumption without penalty of Loan <br /> E - 2 <br /> 9 1 <br />