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Borrower’s Covenants

Post-closing covenants will be required for a borrower in a loan transaction, or a tenant in a lease transaction.
1. Borrower will be required to comply [in all material respects] with Environmental Requirements, to notify lender promptly in writing after knowledge in the event of any release which violates any applicable Environmental Requirement, of any Adverse Environmental Condition

Post-closing covenants will be required for a borrower in a loan transaction, or a tenant in a lease transaction.
1. Borrower will be required to comply [in all material respects] with Environmental Requirements, to notify lender promptly in writing after knowledge in the event of any release which violates any applicable Environmental Requirement, of any Adverse Environmental Condition (as defined) or Environmental Claim (as defined) or any accusation or allegation which may reasonable give rise to an Adverse Environmental Condition of Environmental Claim in connection with borrower’s facilities, and promptly forward to lender a copy of any order, notice, permit, application or any other communication or report received by borrower in connection with any such release, Adverse Environmental Condition or Environmental Claim or any such accusation or allegation.

2. Lender will have the right to remediate in the event of any release, Adverse Environmental Condition or violation of Environmental Requirements. In such event, if borrowers fail to comply promptly with any Environmental Requirement, lender may “but shall not be obligated to,” give such notices or cause such work to be performed or take any and all actions reasonably deemed necessary or desirable to remedy such Adverse Environmental Condition or such failure to comply and any amounts paid as a result thereof, together with interest thereon at the rates set forth shall be immediately due and payable by borrower and until paid shall be added to the loan obligation.

3. Lender in the reasonable exercise of his or her discretion and with reasonable notice, may at any time, without regard to whether borrower is in default, want the right to cause one or more environmental assessments of the property to be undertaken if the lender reasonably believes that any Adverse Environmental Condition or Environmental Claim may exist or that any condition may exist which reasonably give rise to an Adverse Environmental Condition or Environmental Claim. Environmental assessments may include a detailed visual inspection of the property, the taking of soil samples, surface water samples and groundwater samples, and such other investigation or analysis as is reasonably necessary or appropriate for a complete assessment of the compliance of the property and the use and operation thereof with all Environmental Requirements.

4. Borrower may not be permitted to use the property for the generation, storage, handling, processing or disposing of Hazardous Materials or conduct any other activity in a manner that could lead to the imposition on lender, borrower or the property of any liability or lien under any Environmental Requirements.

5. Borrower may be required to notify lender promptly in the event of any spill or other release of any Hazardous Materials in, on or about the property, to forward to lender promptly any notice relating to alleged violations of Environmental Requirements from any Governmental Authority, and to pay promptly when due any fine or assessment against borrower, lender for the property relating to any Environmental Requirements.

6. Borrower may be prohibited from creating or suffering to exist with respect to the property any lien, security interest or other charge or encumbrance of any kind including without limitation any lien imposed pursuant to 42 U.S.C § 9607(1) or any similar state statute.

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