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3. Leases,Subleases,and Easements. Borrower, at Borrower's sole cost and expense,
<br /> shall maintain,and cause to be performed, all of the covenants, agreements,terms,
<br /> conditions,and provisions on its part to be kept, observed, and performed under any lease,
<br /> sublease, or easements which may constitute a portion of or an interest in the Property;
<br /> shall require its tenants or subtenants to keep,observe, and perform all of the covenants,
<br /> agreements,terms, conditions, and provisions on their part to be kept, observed, or
<br /> performed under and any all leases, subleases, or easements; and shall not suffer or permit
<br /> any breach or default to occur with respect to the foregoing; and in a default thereof,
<br /> Lender shall have the right to perform or to require performance of any such covenants,
<br /> agreements,terms, conditions, and provisions of any lease,sublease, or easements.
<br /> Borrower shall not,without the prior written consent of the Lender, consent to any
<br /> modification or amendment of any lease, sublease, or easement (other than modifications
<br /> of leases with residential tenants made in the ordinary course of business). Borrower shall
<br /> not enter into any lease,sublease, or easement,or make any modification or amendment
<br /> that would violate any terms of the HOME Agreement, or violate any of the HOME Program
<br /> regulations governing this Property.
<br /> 4. Preservation. Borrower shall not commit waste or permit impairment or deterioration
<br /> of the Property, shall not abandon the Property; shall restore or repair promptly and in a
<br /> good and workmanlike manner all or any part of the Property to the equivalent of its
<br /> original condition, or such other condition as Lender may approve in writing, in the event
<br /> of any damage, injury or loss thereto,whether or not insurance proceeds are available to
<br /> cover in whole or in part the costs of such restoration or repair; shall keep the Property,
<br /> including improvements and fixtures thereon in good repair and shall replace fixtures, on
<br /> the Property when necessary to keep such items in good repair; shall comply with all laws,
<br /> ordinances,regulations and requirements of any governmental body applicable to the
<br /> Property,and cure any violations within the time permitted by the applicable governing
<br /> body; shall use and operate, and shall require its lessees or licensees to use or operate,the
<br /> Property in compliance with all applicable laws,ordinances, regulations, covenants,
<br /> conditions and restrictions and with all applicable requirements of any lease or sublease
<br /> now or hereafter affecting the Property; shall operate and maintain the Property in a
<br /> manner to ensure compliance with applicable U.S. Department of Housing and Urban
<br /> Development (HUD) and HOME Program regulations; and shall give notice in writing to
<br /> Lender of and, unless otherwise directed in writing by Lender,appear in and defend any
<br /> action or proceeding purporting to affect the Property,the security of this Mortgage or the
<br /> rights or powers of Lender. Neither Borrower nor any tenant or other person shall remove,
<br /> demolish or alter any improvement now existing or hereafter erected on the Property or
<br /> any fixture in or on the Property except when incident to the replacement of fixtures with
<br /> items of like kind.
<br /> 5. Use of Property. Unless required by applicable law or unless Lender has otherwise
<br /> agreed in writing, Borrower shall not allow changes in the use for which all or any part of
<br /> the Property was intended at the time this Mortgage was executed. Borrower shall not
<br /> initiate or acquiesce in a change in the zoning classification of the Property without
<br /> Lender's prior written consent. The Property shall be used as qualifying rental,under the
<br /> terms of the HOME Agreement, for a period not less than twenty(20) years or until the
<br /> terms of such HOME Agreement,this Mortgage, or HUD regulation are satisfied. Any
<br /> breach of this restriction shall cause all indebtedness secured by this Mortgage, at once or
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