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Section 6. Transfer Restrictions. The Borrower covenants and agrees that the Borrower will cause or require as a condition precedent to any conveyance, transfer, assignment or any other disposition of the Project prior to the termination of the Rental Restrictions and Occupancy Restrictions provided herein (the "Transfer") that the transferee of the Project pursuant to the Transfer will assume in writing, in a form acceptable to Bond Counsel, all duties and obligations of the Borrower under this Regulatory Agreement, including this Section 6, in the event of a subsequent Transfer by the transferee prior to expiration of the Rental Restrictions and Occupancy Restrictions provided herein (the "Assumption Agreement"). The Borrower shall deliver the Assumption Agreement to the Trustee prior to the Transfer. Section 7. Enforcement. (a) The Borrower shall, upon reasonable notice and during normal business hours, permit any duly authorized representative of the Trustee or City to inspect any books and records of the Borrower regarding the Project and the operation thereof, including the incomes of Qualifying Tenants. (b) The Borrower shall submit any information, documents or certificates requested by the Trustee or City which any of them deem reasonably necessary to substantiate the Borrower's continuing compliance with the provisions of this Regulatory Agreement or the Code. (c) The Borrower covenants that it will not knowingly take or permit any action that would adversely affect the exclusion of interest on the Bonds from gross income of the owners thereof for purposes of federal income taxation. Moreover, the Borrower covenants to take any lawful action (including amendment of this Regulatory Agreement as may be necessary, in the opinion of bond counsel reasonably acceptable to the Trustee) to comply fully with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the Department of the Treasury or the Internal Revenue Service from time to time pertaining to obligations the interest on which is tax-exempt under Section 142(d} or any successor provision of the Code and affecting the Project. (d) If the Borrower defaults in the performance or observance of any covenant, agreement or obligation of the Borrower set forth in this Regulatory Agreement and such default remains uncured for a period of 30 days after notice thereof is given by the Trustee to the Borrower, or within such further time as Bond Counsel determines is necessary to correct the violation without loss of tax exemption of interest on the Bonds, but not to exceed any limitations set by applicable regulations, then the Trustee may (i) institute and prosecute any proceeding at law or in equity to abate,. prevent or enjoin such default, or to recover money damages caused by such default (including, without limitation, issuing an order of noncompliance for substantial violations pursuant to Minnesota Statutes, Section 474A.047, Subdivision 3, and assessing the annual penalty authorized thereby, but not to accelerate repayment of amounts due under the Loan Agreements for the Bonds except as may be permitted by the Loan Agreements for the Bonds), and (ii) exercise any remedies available pursuant to the Loan Agreements, Indentures for the Bonds or any mortgage on the Project. The Borrower agrees that an action to recover money damages for default will not be an adequate remedy at law, and the Trustee shall have the right to institute an action for and seek specific performance 2029975v1