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Note will be used,, directly or indirectly, to finance or refinance property used in an unrelated
<br />trade or business of the Borrower determined by applying Section 513(c) of the Code or in the
<br />trade or business of any person other than an organization describleld in 'Section 51101 (c)(3) of the
<br />Code. There is no action, proceeding or investigation pending or threatened by the Internal
<br />Revenue Service or authorities of the State, if adversely determined, might result in a
<br />modification of the status of the Borrower as an organization described in Section 501(c)(3) of
<br />the Code:
<br />(3) the execution and delivery of this Agreement, the Mortgage, the Security
<br />Agreernen.t and the Pledge and Security Agreement, the consurnmiation of the, transactions
<br />contemplated thereby, and. the fulfillment of the terms and conditions thereof do not and will not
<br />conflict, with or result in a breach of any of the terms or conditions of the Borrower's articles of
<br />incorporation,, its bylaws, any restriction or any agreement or instrument to which the Borrower
<br />is now a party or by which. it is bound or to which any property of the Borrower is subject, and
<br />do not and will not constitute a defcault under any of the foregoing or a violation of any order,
<br />decree, statute,, rule or regulation of any court or of any state or federal regulatory body having
<br />jurisdiction over the Borrower or its properties, including the Project, and do, not and will not
<br />result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of
<br />the property or assets of the Borrower contrary to the, terms of any mstrument or agreement to
<br />which the Borrower is a pasty or by which it is bound-
<br />(4) the use of the ProJect as designed and proposed to be operated complies, in all
<br />material respects, with all presently applicable development, pollution control, water
<br />conservation and other laws, regulations, rules and ordinances of the federal government and the
<br />State of Minnesota and the respective agencies thereof and the political subdivisions, in which the
<br />Project is located. The Borrower has obtained, or will obtain in a tin mel
<br />y manner, all necessary
<br />and material approvals of and licenses, permits,, consents and franchises from federal,, state, City,
<br />municipal or other governmental authorities having jurisdiction over the Project to acquire,
<br />construct, install, and operate the Project and to enter into,execute and perform its obligations
<br />under this Agreement, the Mortgage mid the Security Agreement; and no violation of any local
<br />ordinance, laws, regulation or requirement exists with respect to the Land-,
<br />(5) the proceeds of the Note, together with any other, funds to 'be contributed to the
<br />Project by the Borrower or otherwise in accordance with this A. reenient,, will be sufficient to
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<br />pay the cost of the Project in a manner suitable for its use, and all costs and expenses 'Incidental
<br />thereto, and the proceeds of the Note Nvill be used only for the purposes contemplated hereby and
<br />allowable under the Act;
<br />(6) the PrOJect is economically more feasible with the aviallability of the long term
<br />financing herein authorized,,
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<br />(7) the Borrower is not in the trade or business of selling properties such as the
<br />Project and is undertaking the Project for its charitable purposes only, and therefore the
<br />Borrower has no intention now or in the foreseeable future to, voluntarily sell, surrender or
<br />otherwise transfer, in whole or part, its interest in the Project-,
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