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ATTY/RESO.0053/CC RESO AMENDING AFFORDABLE HOUSING PRESERVATION PROGRAM – EXHIBIT B <br />REV: 08-19-24 LF <br />Page 10 of 86 <br />l. [For Expiring Covenant Loans, or if Rehabilitation is minor in nature and <br />does not require building permits, delete] Borrower shall have obtained and maintain performance <br />and completion bonds or such other reasonable construction assurances as may be acceptable to <br />the City for the Rehabilitation Work. <br />m. Borrower shall have satisfied all of the applicable terms and conditions set <br />forth in this Agreement. <br />n. Borrower shall have complied with all Supplemental Conditions that are <br />conditions precedent to disbursement of Loan funds. [If no Supplemental Conditions, delete this <br />section] <br />o. All of the representations and warranties made by the Borrower in this <br />Agreement and in the Note, the Deed of Trust and the Regulatory Agreement shall be true and <br />correct in all material respects as of the date of the Initial Disbursement. <br />204.2 [For Expiring Covenant Loans, or where Loan is made solely for <br />acquisition, or through a single disbursement, delete] Conditions Precedent to Subsequent <br />Disbursements. The City’s obligation to make disbursements subsequent to the Initial <br />Disbursement (“Subsequent Disbursements”) upon the satisfaction or waiver by City of each and <br />all of the conditions precedent described below (“Conditions Precedent to Subsequent <br />Disbursements”), which are solely for the benefit of the City, and which shall be fulfilled or <br />waived by the time periods provided for herein. <br />a. All conditions precedent for the Initial Disbursement have been satisfied or <br />waived by the City. <br />b. The City has received a written draw request from the Borrower, setting <br />forth the proposed uses of funds consistent with the Project Budget, the amount of funds needed, <br />and, where applicable, a copy of the bill or invoice covering a cost incurred or to be incurred. <br />When a disbursement is requested to pay any contractor in connection with improvements on the <br />Property, the written request must be accompanied by (i) certification by the Borrower's architect <br />reasonably acceptable to the City that the work for which disbursement is requested has been <br />completed (although the City reserves the right to inspect the Property and make an independent <br />evaluation); and (ii) lien releases and/or mechanics lien title insurance endorsements reasonably <br />acceptable to the City. <br />205. Repayment of Loan. Borrower shall repay the Loan pursuant to the terms of the <br />Note. <br />206. Subordination of Loan. The City Manager shall have the authority to execute and <br />deliver subordination agreements as they determine are commercially reasonable and consistent <br />with the purpose and effect of this Agreement subordinating the Deed of Trust to one or more <br />Senior Loans as approved by the City. Notwithstanding the foregoing, the Regulatory Agreement <br />implements the affordability requirements required as a condition for the making of the Loan, and <br />must be senior to all financing, except that the City may subordinate the Regulatory Agreement, <br />to regulatory agreements required as a condition of financing for an approved Senior Loan. <br />6.M. - Page 39 of 110 <br />495