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200314437 operating expenses (itemized) and net income before federal income taxes. Borrower shall maintain during the term of the loan a minimum debt service coverage ratio of 1.20x (Total Annual Net Income from the completed units divided by Annual Debt Service for the completed units at the Property). The debt service coverage ratio shall be tested on an annual basis and failure to maintain said minimum debt service coverage ratio shall be an event of default. If Borrower fails to furnish said statements, Lender shall, at its option, have the right to audit Borrower's books and records. Borrower shall furnish to Lender, annual financial statements for the Borrower by April 1 of each year during the loan term. Said statements shall include a balance sheet, profit and loss statement, and any supplemental schedules. If Borrower fails to furnish said statements, Lender shall, at its option, have the right to audit Borrower's books and records. Upon request, Borrower will also provide copies of its federal income tax returns to Lender. Borrower shall furnish to Lender, annual financial statements for O'Connor Enterprises, Inc. by April 1 of each year during the loan term. Said statements shall include a balance sheet, profit and loss statement, and any supplemental schedules. If Borrower fails to furnish said statements, Lender shall, at its option, have the right to audit O'Connor Enterprises, Inc.'s books and records. Upon request, O'Connor Enterprises, Inc. will also provide copies of its federal income tax returns to Lender. Guarantors, Raymond J. O'Connor and Jennifer S. O'Connor, shall submit personal financial statements dated and signed certifying to the accuracy of the statement by April 1 of each year during the term of the loan. Said personal financial statements must be current (not more than 60 days old) when submitted to Lender. Upon request, Guarantors will also provide copies of their respective federal income tax returns to Lender. 32. MONTHLY INSTALLMENT ADJUSTMENTS. Borrower and Lender acknowledge that the Interest and Installments of Principal and Interest of the Note secured hereby are subject to periodic adjustment pursuant to the provisions of said Note. 33. SECONDARY FINANCING. Borrower hereby agrees that there shall be no secondary financing on the Property without the prior written consent of Lender. 34. CONSTRUCTION LOAN PROVISIONS. Borrower agrees to comply with the covenants and conditions of the Construction Loan Agreement, if any, which is hereby incorporated by reference in and made a part of this Security Instrument. All advances made by Lender pursuant to the Construction Loan Agreement shall be indebtedness of Borrower secured by this Security Instrument, and such advances may be obligatory as provided in the Construction Loan Agreement. All sums disbursed by Lender prior to completion of the improvements to protect the security of this Security Instrument up to the principal amount of the Note shall be treated as disbursements pursuant to the Construction Loan Agreement. All such sums shall bear interest from the date of disbursement at the rate stated in the Note, unless collection from Borrower of interest at such rate would be contrary to applicable law in which event such amounts shall bear interest at the highest rate which may be collected from Borrower under applicable law and shall be payable upon notice from Lender to Borrower requesting payment therefore. From time to time as Lender deems necessary to protect Lender's interests, Borrower shall, upon request of Lender, execute and deliver to Lender, in such form as Lender shall direct, assignments of any and all rights or claims which relate to the construction of the Property and which Borrower may have against any party supplying or who has supplied labor, materials or services in connection with construction of the Property. In case of breach by Borrower of the covenants and conditions of the Construction Loan Agreement, Lender, at Lender's option, with or without entry upon the Property, (i) may invoke any of the rights or remedies provided in the Construction Loan Agreement, (ii) may invoke all rights and remedies provided in this Security Instrument, including the acceleration of all sums secured by this Security Instrument, or (iii) may exercise any other right or remedy available to Lender under the Loan Documents or such remedies as may be provided at law or in equity. All such rights and remedies shall be cumulative. 35. REQUEST FOR NOTICE. Borrower and Lender hereby request that a copy of any notice of default and notice of sale made or executed by Trustee pursuant to the provisions hereof be sent to Borrower and Lender at their respective mailing addresses set forth above. 12