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(e) Borrower and the Agency acknowledge that Borrower's failure to comply with <br /> the covenants provided in the Restrictive Covenants does not and shall not serve as a basis for <br /> default under the HUD Requirements, unless a default also arises under the HUD Requirements. <br /> (f) Except for the Agency's reporting requirement, in enforcing the Restrictive <br /> Covenants the Agency will not file any claim against the Project, the Mortgage Loan proceeds, <br /> any reserve or deposit required by HUD in connection with the Security Instrument or HUD <br /> Regulatory Agreement, or the rents or other income from the property other than a claim against: <br /> (i) Available Surplus Cash, if the Borrower is a for-profit entity; <br /> (ii) Available distributions and Residual Receipts authorized for release by <br /> HUD, if the Borrower is a limited distribution entity; <br /> (iii) Available Residual Receipts authorized by HUD, if the Borrower is a <br /> non-profit entity; or <br /> (iv) A HUD-approved collateral assignment of any HAP contract. <br /> (g) For so long as the Mortgage Loan is outstanding, Borrower and Agency shall not <br /> further amend the Restrictive Covenants, with the exception of clerical errors or administrative <br /> correction of non-substantive matters, without HUD's prior written consent. <br /> (h) Subject to the HUD Regulatory Agreement, the Agency may require the Borrower <br /> to indemnify and hold the Agency harmless from all loss, cost, damage and expense arising from <br /> any claim or proceeding instituted against the Agency relating to the subordination and <br /> covenants set forth in the Restrictive Covenants, provided, however, that Borrower's obligation <br /> to indemnify and hold Agency harmless shall be limited to available Surplus Cash and/or <br /> Residual Receipts of the Borrower. <br /> (i) No action shall be taken in accordance with the rights granted herein to preserve <br /> the tax exemption of the interest on the notes or bonds, or prohibiting the owner from taking any <br /> action that might jeopardize the tax-exemption, except in strict accord with Program Obligations. <br /> (j) This Rider may be executed in several counterparts, which shall be treated as <br /> originals for all purposes, and all so executed shall constitute one agreement, binding on all of <br /> the parties, notwithstanding that all parties are signatory to the original or the same <br /> counterpart. Any such counterpart shall be admissible into evidence as an original hereof against <br /> the party who executed it. <br /> [The remainder of this page is intentionally left blank- Signatures follow] <br /> E-3 <br />