Agmt25 CDBG Loan Agreement - Moreno

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(c) Refinance of the first loan, provided such refinancing meets the requirements of Section 14 and is approved by the Lender. Section 4. Construction Work, Compliance with Laws. The repairs and rehabilitation work shall be conducted and completed in accordance with the Scope of Work, which includes construction plans and cost estimates based on an assessment of the Property approved by Borrower, Habitat and Lender. Habitat shall enter into a construction contract with the Borrower in a form approved by the Lender ("Construction Contract") and Habitat shall enter into a subcontractor contract with a licensed contractor approved by Lender ("Subcontractor") in a form approved by the Lender that has been selected in accordance with all applicable laws and CDBG Regulations. Habitat shall work with both Borrower and the Subcontractor to inspect the construction work while in progress, review progress payment requests from Subcontractor, and conduct an inspection to ascertain that the construction work has been completed in accordance with the Scope of Work. The Construction Contract and the subcontractor contract shall require Habitat and the Subcontractor to comply with the Scope of Work, and all applicable Federal, State, and Local laws and regulations with respect to completion of the construction work. Borrower acknowledges, understands and agrees that the relationship between Borrower and the Lender is solely that of borrower and lender, and that Lender neither undertakes nor assumes any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on, or inform Borrower of the quality, adequacy or suitability of the construction work or any other matter. The Lender owes no duty of care to protect Borrower against negligent, faulty, inadequate or defective building or construction or any condition of the Property and Borrower agrees that neither Borrower, nor Borrower heirs, successors or assigns shall ever claim, have or assert any right or action against Lender for any loss, damage or other matter arising out of or resulting from any condition of the Property and will hold the Lender harmless from any liability, loss or damage for these things. Section 5. Conditions Precedent to Disbursement of Loan Proceeds, The Lender's obligation to disburse the Loan proceeds are expressly conditioned upon the satisfaction or written waiver by the Lender of the following conditions precedent: (a) No Material Adverse Change. There exists no material adverse change in the financial condition of Borrower from that shown by data and other information furnished by Borrower to the Lender prior to Effective Date of this Agreement. (b) No Breach. There exists no condition, event, act or omission which constitutes a breach or Default (as defined below) under any of the Loan Documents, or which would constitute such a breach, default or Default after notice or the lapse of time or both. (c) Loan Documents. Borrower has executed, acknowledged (as applicable) and delivered to the Lender all of the Loan Documents, and the Deed of Trust will be recorded against the Property in the San Mateo County Recorder's Office concurrently with the close of escrow. REV: 10-02-25 LF ATTY/AGR.2025.2551Habitat for Humanity (142 Center (Moreno) CDBG Loan Agreement) (Page 3 of 21)