20A - AA - LOAN AGMT 601 E 20TH ST

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City has reasonable grounds to question Borrower's fiscal accountability, financial soundness or compliance with this Agreement, City may suspend the operation of this Agreement for up to 60 days upon 5 days' written notice to Borrower of its intention to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions made by City affect expenditures and legally binding commitments made by Borrower before it received notice of such revision, provided that such amounts have been committed in good faith and are otherwise allowable and that such commitments are consistent with cash withdrawal guidelines. 13. Loan Servicing. City may contract with a private lender to originate and service the Loans. 14. Indemnification. Borrower shall indemnify, defend and hold harmless the City and its officers, agents, employees, legal counsel, representatives and volunteers, from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement, including, but not limited, to any mechanic's lien or materialmen's lien against the property. 15. Taxes. Borrower shall remain fully obligated for the payment of taxes, liens and assessments relating to the Property. There shall be no reduction in taxes for Borrower, nor any transfer of responsibility to City to make such payments, by virtue of the Loans. 16. Insurance. Borrower shall maintain, during the term of the Loans, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name City as loss payee and shall contain a statement of obligation on behalf of the insurance carrier to notify City of any material change, cancellation or termination of coverage at least 30 days in advance of the effective date of such material change, cancellation or termination. Borrower shall deliver a copy of the certificate of insurance and loss payee endorsement to City at the close of escrow of this loan, and Borrower shall annually deliver a copy of the certificate of insurance and loss payee endorsement to City, signed by an authorized agent of the insurance carrier and setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be delivered to City as follows: The City of Santa Ana 20 Civic Center Plaza, M-37 P.O. Box 1988 Santa Ana, California 92702-1988 Attention: Housing Programs Coordinator Any certificate of insurance required by this Section must be in a form, content and with an insurance company that is acceptable to City in its sole discretion. 17. Non-Waiver. Failure to exercise or delay in exercising any right City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 18. Documents. Borrower has reviewed and, if appropriate, agrees to execute and acknowledge the following documents in substantially the form as attached to this Agreement prior Page 11 of 15 20A-15