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200103932 <br />occurrence or condition is or may be in violation of Hazardous Materials <br />Laws; or <br />(4) any violation of or noncompliance with the terms of any Environmental <br />Permit with respect to the Mortgaged Property or any property of <br />Borrower that is adjacent to the Mortgaged Property. <br />The matters described in clauses (1) through (4) above are referred to collectively in this <br />Section 18 as "Prohibited Activities or Conditions ". <br />(b) Prohibited Activities and Conditions shall not include the safe and lawful use and <br />storage of quantities of (1) pre - packaged supplies, cleaning materials and petroleum products <br />customarily used in the operation and maintenance of comparable multifamily properties, <br />(2) cleaning materials, personal grooming items and other items sold in pre - packaged containers <br />for consumer use and used by tenants and occupants of residential dwelling units in the <br />Mortgaged Property; and (3) petroleum products used in the operation and maintenance of motor <br />vehicles from time to time located on the Mortgaged Property's parking areas, so long as all of <br />the foregoing are used, stored, handled, transported and disposed of in compliance with <br />Hazardous Materials Laws. <br />(c) Borrower shall take all commercially reasonable actions (including the inclusion <br />of appropriate provisions in any Leases executed after the date of this Instrument) to prevent its <br />employees, agents, and contractors, and all tenants and other occupants from causing or <br />permitting any Prohibited Activities or Conditions. Borrower shall not lease or allow the <br />sublease or use of all or any portion of the Mortgaged Property to any tenant or subtenant for <br />nonresidential use by any user that, in the ordinary course of its business, would cause or permit <br />any Prohibited Activity or Condition. <br />(d) If an O &M Program has been established with respect to Hazardous Materials, <br />Borrower shall comply in a timely manner with, and cause all employees, agents, and contractors <br />of Borrower and any other persons present on the Mortgaged Property to comply with the O &M <br />Program. All costs of performance of Borrower's obligations under any O &M Program shall be <br />paid by Borrower, and Lender's out -of- pocket costs incurred in connection with the monitoring <br />and review of the O &M Program and Borrower's performance shall be paid by Borrower upon <br />demand by Lender. Any such out -of- pocket costs of Lender which Borrower fails to pay <br />promptly shall become an additional part of the Indebtedness as provided in Section 12. <br />(e) Borrower represents and warrants to Lender that, except as previously disclosed <br />by Borrower to Lender in writing: <br />(1) Borrower has not at any time engaged in, caused or permitted any <br />Prohibited Activities or Conditions; <br />(2) to the best of Borrower's knowledge after reasonable and diligent inquiry, <br />no Prohibited Activities or Conditions exist or have existed; <br />(3) except to the extent previously disclosed by Borrower to Lender in <br />writing, the Mortgaged Property does not now contain any underground <br />01- 327514.1 <br />FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT - Form 4028 4/98 Page 17 <br />NEBRASKA <br />