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<br />11 <br />The Crossroads at Washington <br />City HOME Loan Agreement <br />of Trust and the Affordability Restrictions on Transfer of Property shall have been recorded <br />in the Official Records of the County. This Agreement, and the City/HOME Loan Deed <br />of Trust shall be subordinate to the Senior Loan Note, the Senior Loan Deed of Trust, and <br />the other Senior Loan Documents. <br />(f) Request for Notice. For the benefit of City, Escrow Holder shall <br />have recorded a request for notice of default of the Senior Loan (the "Request for Notice <br />of Default"). <br />(g) Insurance. City shall have received evidence satisfactory to the City <br />that all of the policies of insurance required by Section 19 of this Agreement are in full <br />force and effect. <br />(h) Representations and Warranties. The representations and warranties <br />of Developer contained in this Agreement and the other Loan Documents shall be correct <br />in all material respects as of the Close of Escrow as though made on and as of that date, <br />and if requested by the Executive Director, City shall have received a certificate to that <br />effect signed by Developer's Representative. <br />(i) No Default. No Event of Default by Developer shall have <br />occurred and be continuing, and no event shall have occurred which, with the giving of <br />notice or the passage of time or both, would constitute an Event of Default by Developer <br />under this Agreement, and if requested by the Executive Director, City shall have received <br />a certificate to that effect signed by Developer's Representative. <br />6.2. Disbursement Procedures for Loan. <br />The City/HOME Loan proceeds shall be disbursed through Escrow to finance the construction <br />of the Property (as evidenced in Exhibit C). The City/HOME Loan proceeds shall not be used <br />for any purpose other than for eligible construction costs, including a developer fee and soft <br />costs related to development of the Project (costs all subject to City’s prior review). The City <br />allows for eligible costs to be paid by HOME loan funds that were incurred not more than 24 <br />months prior to the HOME funds commitment date of this loan agreement in accordance with <br />HOME regulations. Ninety percent (90%) of the City/HOME Loan proceeds will be <br />disbursed by City to Developer after execution and recording of this Agreement, with ten <br />percent (10%) held back by the City and not disbursed to Developer until after completion of <br />construction on the Project and issuance of a Certificate of Completion. <br /> <br />6.3. First Disbursement. The City's obligation to make the first disbursement <br />of the construction portion is subject to satisfaction of the following conditions precedent: <br />(a) General Contractor. If the Executive Director has not yet approved <br />the General Contractor, the Executive Director shall have approved the identity and <br />qualifications of the General Contractor which approval will not be unreasonably withheld, <br />conditioned or delayed. <br />(b) Construction Contract. If the Executive Director has not yet <br />approved the Construction Contract, the Executive Director shall have approved the <br />EXHIBIT 5