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200109053 whether such covenants, reservations, restrictions, charges and easements are set forth in such contract, deed or other instruments. At the time of executing this Regulatory Agreement, the Borrower shall pay to the Issuer and the Trustee all direct costs incurred or to be incurred by the Issuer and the Trustee in causing this Regulatory Agreement to be duly recorded (or the terms hereof to be incorporated into a deed to be duly recorded) in the office of public records in the County as an encumbrance upon the Project Site and the Trustee agrees to deliver to the Borrower a copy of the fully recorded document. No breach of any of the provisions of this Regulatory Agreement shall impair, defeat or render invalid the lien of the Mortgage or any subsequent mortgage, deed of trust or like encumbrance made in good faith and for value encumbering the Project or any portion thereof. Section 14. Burden and Benefit. The Issuer, the Trustee and the Borrower hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Borrower's legal interest in the Project is rendered less valuable thereby. The Issuer, the Trustee and the Borrower hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Project by Low Income Tenants, Moderate Income Tenants and Qualified LIHTC Tenants, the intended beneficiaries of such covenants, reservations, restrictions, charges and easements, and by furthering the public purposes for which the Bonds were issued. Notwithstanding the foregoing or any other provision of this Regulatory Agreement, no person, other than the parties hereto and the intended beneficiaries identified above, shall have any rights of enforcement of this Regulatory Agreement. Section 15. Uniformity; Common Plan. The covenants, reservations, restrictions, charges and easements hereof shall apply uniformly to the entire Project in order to establish and carry out a common plan for the use, development and improvement of the Project Site. Section 16. Default; Enforcement. 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 if such default remains uncured for a period of 30 days after notice thereof shall have been given to the Borrower, then the Issuer, or the Trustee, acting on behalf of the Issuer, shall declare an "Event of Default" to have occurred hereunder, provided, however, that if the default stated in the notice is of such a nature that it cannot be corrected within 30 days, such default shall not constitute an Event of Default hereunder so long as (i) the Borrower institutes corrective action within said 30 days and diligently pursues such action until the default is corrected, and (ii) in the opinion of Bond Counsel, the failure to cure said default within 30 days will not adversely affect the Tax - exempt status of interest on the Series 2001A Bonds. The Trustee hereby consents to any correction of the default by the Issuer on behalf of the Borrower. Notwithstanding the foregoing, if such default relates to provisions herein with respect to restrictions imposed by Section 42 of the Code or any other restrictions imposed by the Issuer hereunder related to low- income housing tax credits, the Issuer will file with the IRS a copy of IRS Form 8823, after 30 days from the date of notice, explaining the nature of the non - compliance and whether or not such non - compliance has been corrected and any one or more of the following may institute and prosecute any proceeding at law or in equity to abate, prevent or enjoin any such violation or attempted violation, or to recover monetary damages caused by such violation or attempted violation: the Issuer or any governmental entity succeeding to the Issuer's functions or any individual who meets the income limitation applicable under Section 42 of the Code (whether prospective, present or former occupant). Non - compliance includes, but is not limited to: (1) failure to receive or non - allowance to inspect tenant Income Certifications, supporting documentation and rent records, (2) upon inspection, non - compliance with provisions of Section 42, and (3) any change in the applicable fraction or eligible basis that would result in a decrease in the qualified basis (as defined in Section 42 of the Code). The Issuer is authorized and entitled to do all acts necessary to comply with the monitoring and notification responsibilities set -22-