Agmt25 CDBG Loan Agreement - Moreno

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(d) Construction Contract and Subcontractor Contract. Borrower and Habitat have executed the Construction Contract and Habitat and the Subcontractor have executed a subcontractor contract for the Scope of Work, each in a form approved by the Lender. (e) Insurance. Borrower has furnished evidence of insurance coverage satisfying the requirements of Section 9 below. (f) Notice to Proceed. A notice to proceed has been issued to the Subcontractor by the Lender and Borrower. (g) Lender's Policy. Borrower has procured and delivered to the Lender an ALTA Lender's Policy of Title Insurance, together with such endorsements as the Lender may require, in an amount equal to the principal amount of the Loan, insuring the priority of Deed of Trust as liens or charges upon the Property, subject only to such exceptions and exclusions as may be reasonably acceptable to the Lender, and containing such endorsements as the Lender may reasonably require. Such policy shall be issued by a title insurer reasonably approved by the Lender. (h) Permits. Borrower has received all permits, including but not limited to building permits, necessary to perform the repairs and rehabilitation work. (i) Other Financing. Borrower has provided documentation to the Lender's satisfaction that undispersed proceeds of the Loan, together with other funds or firm commitments for funds that Borrower has obtained, are not less than the amount that is necessary to pay for Scope of Work. Section 6. Compliance with Approved Scope of Work; Disbursement and Use of Loan Proceeds. Provided that all of the conditions precedent to disbursement of the Loan proceeds in Section 5 above have been either satisfied or waived in writing by the Lender, the Lender shall make disbursements of the Loan to pay costs incurred in the completion of the Scope of Work to pay amount due in accordance with the provisions of the Construction Contract and the subcontractor contract between Habitat and the Subcontractor. The Loan proceeds shall be used only for the work and materials necessary for the Scope of Work and for permits and fees. Section 7. Inspection of Work. The Lender shall have the right to inspect all rehabilitation work financed, in whole or in part, with the proceeds of the Loan. The Borrower will take all steps necessary to assure that the Lender or its designee is permitted to examine and inspect the rehabilitation work and all contract, materials, equipment, payrolls, and conditions of employment pertaining to the Scope of Work, including all relevant data and records. Section 8. Representations and Warranties. Borrower hereby represents and warrants to Lender as follows, which representations and warranties shall be true and correct as of the Effective Date and acknowledges, understands, and agrees that the representations and warranties set forth in this Section are deemed to be continuing during all times when any portion of the Loan remains outstanding: REV: 10-02-25 LF ATTYIAGR.2025.255JHabitat for Humanity (142 Center (Moreno) CDSG Loan Agreement) (Page 4 of 21)