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I. Failure of HCA or any subsequent holder of this Note to exercise any option available to said holder shall
not constitute a waiver of the right to exercise such option in the event of a future default. No delay or
omission on the part of HCA or any subsequent holder of this Note in exercising any right hereunder shall
operated as a waiver of such right or of any other right os such holder not shall any delay, omission or
waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any future
occasion.
J. Upon default, HCA will notify the Borrower, in writing, of such default. The notice of default will be by
certied U.S. mail, return receipt requested, addressed to the Borrower at the last address on le with HCA.
Refusal of non-delivery at that address shall be deemed delivery aer seven (7) days. Upon default, HCA
may disclose that the Borrower had defaulted, along with other relevant information, to employment and
credit bureau organizations.
4 Operatingrequirments
At all times during each year of the Borrower’s loan obligation (up to two (2) years) of this Note, the Borrower shall
maintain a recovery residence and at all times adhere to the following requirements:
A. Maintain a home-like environment that promotes healthy recovery from substance use and supports
persons recovering from substance use through the use of peer recovery support; and
B. Maintain a drug and alcohol-free environment covering all tenants, employees, sta, agents of the
landlord and guests; and
C. The home shall be peer-run, which shall mean the residents govern the home and are required to pay rent
to the property owner; and
D. The home shall operate under the rules and standards according to the Substance Abuse and Mental
Health Services Administration (SAMHSA) and the National Alliance for Recovery Residences (NARR) best
practices; and
E. The residents of the home must have ready access to sobriety maintenance activities; and
F. The home will have a written relapse plan in eect at all times. This plan is to be reviewed and made
available upon request; and
G. Allow residents to use prescribed medication for physical health, mental health and substance use while
residing in house; and
H. The homes occupancy shall be based on local residential zoning rules and should be a minimum of y
(50) square feet of space per resident.
5 Useofloanfunds
A. Approved use of the Loan includes, but is not limited to, the following start-up costs:
1. One time rent or mortgage payment
2. Security deposits for utilities
3. Salaries for on-site sta
4. Minimal maintenance costs
5. Licensing and certication fees
6. Purchasing furnishings for recovery residence
B. The Borrower shall not use Loan funds to make a payment for any service which has been, or can
reasonably be expected to be, made under another state compensation program, or under any insurance
policy, or under any federal or state health benets program (including the program established in Title
XVIII of the Social Security Act and the program established in Title XIX of such act), or by any entity that
provides health services on a prepaid basis. Loan funds may not be used for co-payments or for the same
services that can be covered under other third-party payors.
C. The Borrower shall refund to HCA any funds unexpended within thirty (30) days aer termination of this
Note.
D. The Borrower shall refund to HCA any Loan funds that were expended inappropriately upon een (15)
days’ notice by HCA of discovery of the misappropriation.