Common use of Notification of Events of Default and Adverse Developments Clause in Contracts

Notification of Events of Default and Adverse Developments. Borrowers shall promptly notify Lender upon obtaining knowledge of the occurrence of: (a) any Event of Default; (b) any Default; (c) any litigation instituted or threatened against Borrowers or any Subsidiaries and of the entry of any judgment or Lien (other than any Permitted Liens) against any of the assets or properties of Borrowers or any Subsidiary where the claims against Borrowers or any Subsidiaries exceed Five Hundred Thousand Dollars ($500,000) and are not covered by insurance; (d) any event, development or circumstance whereby the financial statements furnished hereunder fail in any material respect to present fairly, in accordance with GAAP, the financial condition and operational results of Borrowers or any Subsidiaries; (e) any judicial, administrative or arbitral proceeding pending against Borrowers or any of their Subsidiaries and any judicial or administrative proceeding known by Borrowers to be threatened against it or any of its Subsidiaries that, if adversely decided, could materially adversely affect its financial condition or operations (present or prospective); (f) the receipt by Borrowers or any of their Subsidiaries of any notice, claim or demand from any Governmental Authority which alleges that Borrowers or any Subsidiary is in violation of any of the terms of, or has failed to comply with any applicable Laws regulating its operation and business, including, but not limited to, the Occupational Safety and Health Act and the Environmental Protection Act; (g) any default under any Government Contract to which any Borrower is a party, any event which if not corrected could give rise to a default under any Government Contract to which any Borrower is a party, or any event under any Government Contract with a contract value of One Million Dollars ($1,000,000) or greater, which if not corrected could give rise to a termination for convenience; and (h) any other development in the business or affairs of Borrowers and any of their Subsidiaries that may be materially adverse to such Persons taken as a whole; in each case describing in detail satisfactory to Lender the nature thereof and the action Borrowers propose to take with respect thereto.

Notification of Events of Default and Adverse Developments. Each of the Borrowers shall promptly notify the Lender upon obtaining knowledge of the occurrence of: (a) any Any Default or Event of Default; (b) any Default; (c) any Any litigation instituted or threatened against any of the Borrowers or any Subsidiaries and of the Property Owners (i) with respect to any claim involving any of the Apartment Properties of more than Two Hundred Fifty Thousand Dollars ($250,000) in excess of any insurance coverage therefor or (ii) with respect to any claim involving any of the Apartment Properties which is not covered by insurance, of more than Two Hundred Fifty Thousand Dollars ($250,000), or any other litigation instituted against any of the Borrowers or any Subsidiary or Affiliate of any of the Borrowers (i) involving any claim of more than One Million Dollars ($1,000,000) in excess of any insurance coverage therefor or (ii) involving any claim which is not covered by insurance, of more than One Million Dollars ($1,000,000), or the entry of any judgment or Lien against any of Apartment Properties of more than Two Hundred Fifty Thousand Dollars (other than $250,000) in excess of the insurance coverage therefor or which is not otherwise covered by insurance, or the entry of any Permitted Liens) judgment or Lien against any of the other assets or properties of any of the Borrowers or any Subsidiary where or Affiliate of any of the claims against Borrowers or any Subsidiaries exceed Five Hundred Thousand of more than One Million Dollars ($500,0001,000,000) and are in excess of the insurance coverage therefor or which is not otherwise covered by insurance; (dc) any Any event, development or circumstance whereby the financial statements furnished hereunder fail in any material respect to present fairly, in accordance with GAAP, the financial condition and operational results of the Borrowers or any Subsidiariesand their Subsidiaries and Affiliates; (ed) any Any judicial, administrative or arbitral proceeding pending against any of the Borrowers or any of their the Subsidiaries or Affiliates of any of the Borrowers and any judicial or administrative proceeding known by any of the Borrowers to be threatened against it or against any of its Subsidiaries thator Affiliates which, if adversely decided, could materially adversely affect its the financial condition or operations (present or prospective)) of any of the Borrowers, of any of the Property Owners or of the Borrowers and the Subsidiaries and Affiliates of the Borrowers taken as a whole; (fe) the The receipt by any of the Borrowers or any Subsidiary or Affiliate of their Subsidiaries any of the Borrowers of any notice, claim or demand from any Governmental Authority which alleges that Borrowers such Borrower or any such Subsidiary or Affiliate is in violation of any of the terms of, or has failed to comply with with, any applicable Laws regulating its operation and business, including, but not limited to, the Occupational Safety and Health Act and the Environmental Protection Act; , and where such violation or failure to comply could materially adversely affect the financial condition or operations (gpresent or prospective) of any default under of the Borrowers, of any Government Contract to which of the Property Owners or of the Borrowers and the Subsidiaries and Affiliates of any Borrower is of the Borrowers taken as a party, any event which if not corrected could give rise to a default under any Government Contract to which any Borrower is a party, or any event under any Government Contract with a contract value of One Million Dollars ($1,000,000) or greater, which if not corrected could give rise to a termination for conveniencewhole; and (hf) any Any other development in the business or affairs of Borrowers and any of their the Borrowers or any of the Subsidiaries that or Affiliates of any of the Borrowers which may be materially adverse to such Persons the financial condition or operations (present or prospective) of any of the Borrowers, of any of the Property Owners or of the Borrowers and the Subsidiaries and Affiliates of any of the Borrowers taken as a whole; in each case describing in detail satisfactory to the Lender the nature thereof and the action the Borrowers propose to take with respect thereto.