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200109053 (o) the form of lease to be used by the Borrower in renting any units in the Project shall provide for termination of the lease and consent by such person to immediate eviction proceedings in accordance with State law for failure to qualify as a tenant, as applicable, as a result of any material misrepresentation made by such person with respect to his or her income, the failure to provide supporting income verification or failure by such person to annually update the Income Certification. Section 5. Tax - exempt Status of the Series 2001A Bonds. The Borrower makes the following representations, warranties and agreements for the benefit of the Issuer, the Trustee and the holders of the Series 2001A Bonds from time to time: (a) The Borrower will not knowingly take or permit, or omit to take or cause to be taken, as is appropriate, any action that would adversely affect the Tax - exempt nature of the interest on the Series 2001A Bonds and, if it should take or permit, or omit to take or cause to be taken, any such action, it will take all lawful actions necessary to rescind or correct such actions or omissions promptly upon obtaining knowledge thereof. (b) The Borrower will take such action or actions as may be necessary, in the written opinion of Bond Counsel filed with the Issuer and the Trustee, with a copy to the Borrower, to comply fully with all applicable rules, rulings, policies, procedures, Regulations or other official statements promulgated, proposed or made by the Department of the Treasury or the Internal Revenue Service pertaining to obligations the interest on which is Tax- exempt under Section 142(d) of the Code. (c) The Borrower will file or record such documents and take such other steps as are necessary, in the written opinion of Bond Counsel filed with the Issuer and the Trustee, with a copy to the Borrower, in order to insure that the requirements and restrictions of this Regulatory Agreement will, subject to Section 12, be binding upon all owners of the Project, including, but not limited to, the execution and recordation of this Regulatory Agreement in the real property records of the County. (d) The Borrower will not enter into any agreements which would result in the payment of principal or interest on the Series 2001A Bonds being "federally guaranteed" within the meaning of Section 149(b) of the Code. (e) Subject to Section 12, the Borrower will include the requirements and restrictions contained in this Regulatory Agreement in any documents transferring any interest in the Project prior to the expiration of the Qualified Project Period (Bonds) and the Qualified Project Period (LIHTC) to another person to the end that such transferee has notice of, and is bound by, such restrictions, and to obtain the agreement from any transferee to abide by all requirements and restrictions of this Regulatory Agreement. (f) The Borrower agrees and acknowledges that it will not purchase Bonds in amounts related to the principal amount of portion of the Mortgage Loan financed with the proceeds of the Series 2001A Bonds. Section 6. Modification of Tax Covenants. The Borrower, the Trustee and the Issuer hereby agree as follows: -15-