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City shall have failed to provide such written statement within the said 30 day period, the Borrower <br />shall be deemed entitled to the Certificate of Completion. <br />(h) City enters this Agreement in furtherance of the goal of neighborhood revitalization and <br />in reliance on the Borrower's representation that he/she shares this goal and does not intend merely <br />to speculate in land values. <br />(i) Borrower shall not sell, transfer, convey, assign, or lease the Property, or any part <br />thereof, without prior written approval of the City. <br />0) As a condition to City's obligation to fund the Loans, there shall be no liens upon the <br />Property having priority over any deed of trust securing the Promissory Note(s) or any other note <br />executed by Borrower in favor of the City, other than those specified in Exhibit "H", attached <br />hereto and incorporated herein, unless otherwise consented to in writing by the Deputy City <br />Manager. <br />(k) The Loans shall be made by depositing the loan proceeds into a construction escrow <br />account established hereinbelow. Such deposits shall be made as the City receives funding from <br />the letter of credit. Any other monies to be used to fund the rehabilitation of the Property shall also <br />be deposited in the construction escrow account. In addition to other conditions set forth <br />hereinabove, the funding of the Loans is conditional upon the Borrower having obtained all <br />necessary permits for the Project. <br />(1) If the Loans are insufficient to cover the entire estimated costs of the Project, Borrower <br />shall deposit into the construction escrow account the amount required to make up the deficit. <br />(m) Loan proceeds used for actual construction/rehabilitation costs shall be placed in an <br />escrow account with AmeriNational Community Services or at such other institution as City <br />requires. <br />(n) The proceeds of the Loans shall be used for materials, supplies, labor and services that <br />are an integral part of the Project. Funds shall be disbursed only for the purposes and in the <br />amounts approved by City. In the event that, upon the issuance of a Certificate of Completion, if <br />any portion of the proceeds of the Loans remains unexpended in the escrow account established <br />herein, such unexpended balance shall be returned to the City and credited against the loan <br />principal. <br />(o) Upon written request of Borrower, the City will request disbursement of funds from the <br />construction escrow account for fully completed work items. Such requests by the Borrower for <br />payments for individual work items shall be made after inspection and acceptance/approval of the <br />work by the City. Of Borrower's requisitions and invoices and satisfactory proof that the Property, <br />Borrower and City are properly protected from liens or claims of liens for labor and materials. All <br />funds disbursed to Borrower shall be received by Borrower in trust and Borrower agrees that the <br />same shall be used only for the payment of those items contemplated by the particular <br />disbursement. <br />Page 5 of 15 <br />20A-9