Laserfiche WebLink
permitted by law, Developer may pay any Imposition in installments (together with any <br />accrued interest). <br />10.4.1 Right to Contest. Developer shall not be required to pay any <br />Imposition so long as (a) its validity is being actively contested in good faith and by <br />appropriate proceedings, (b) Developer has demonstrated to City's reasonable satisfaction <br />that leaving such Imposition unpaid pending the outcome of such proceedings could not <br />result in conveyance of the Property in satisfaction of such Imposition or otherwise <br />impair City's interests under the Loan Documents, and (c) Developer has furnished City <br />with a bond or other security satisfactory in an amount not less than 100% of the <br />applicable claim (including interest and penalties). <br />10.4.2 Evidence of Payment. Upon demand by City from time to time, <br />Developer shall deliver to City, within thirty (30) days following the due date of any <br />Imposition, evidence of payment reasonably satisfactory to City. <br />10.4.3 Books and Records. Developer shall maintain complete books of <br />account and other records reflecting its operations (in connection with any other <br />businesses as well as with respect to the Property), in accordance with generally accepted <br />accounting principles applied on a consistent basis or in accordance with such other <br />principles or methods as are reasonably acceptable to City, in accordance with 24 CFR <br />92.508. <br />10.5 Project Operating Budget. Developer must promptly deposit all <br />project income directly into a segregated depository account established exclusively for <br />the Project ( "Project Operating Account "). Withdrawals from this account maybe made <br />only in accordance with the provisions of this Agreement and the approved Project <br />Budget, as it may be revised from time to time with City approval. Developer may make <br />withdrawals from this account solely for the payment of project expenses and project <br />fees. Withdrawals from this account for other purposes may be made only with the prior <br />written approval of the City. <br />10.6 Replacement Reserve Account. Developer must establish or cause to be <br />established a segregated interest- bearing replacement reserve depository account <br />( "Replacement Reserve Account ") no later than sixty (60) days after the Certificate of <br />Completion is filed. Developer must make monthly deposits from project income into <br />the Replacement Reserve in accordance with Developer's Budget, as amended from time <br />to time. Developer may withdraw funds from the Replacement Reserve Account solely <br />to fund capital improvements for the Project, such as replacing or repairing structural <br />elements, furniture, fixtures or equipment of the Project that are reasonably required to <br />preserve the Project. Developer may not withdraw funds from the Replacement Reserve <br />Account for any other purpose without the prior written approval of the City. <br />11. NONDISCRIMINATION COVENANTS <br />11.1 Obligation to Refrain from Discrimination. Developer covenants and <br />agrees that: <br />25 <br />