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refused or failed to furnish the Release of Construction Covenants. The statement shall also contain the Agency's position as to the actions the Developer must take to obtain the Release of Construction Covenants. The Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of any mortgage, or any insurer of a mortgage securing money loaned to finance the Improvements, or any part thereof. The Release of Construction Covenants is not a notice of completion as referred to in Section 3093 of the California Civil Code. 311. Financing of the Improvements. 311.1 Approval of Financing. As required herein and as an Agency Condition Precedent to each Closing of a Phase, Developer shall submit to Agency evidence that Developer has obtained sufficient equity capital (for example, a Letter of Credit) or has obtained firm and binding commitments for construction and permanent financing necessary to undertake the development of the Sites in such Phase and the construction of the Improvements in such Phase in accordance with this Agreement. Such evidence of financing shall include the following: (a) a copy of a legally binding, firm and enforceable loan commitment(s)/ Letter of Credit obtained by Developer from financial institutions unrelated to Developer for the mortgage loan or loans for financing to fund the construction, completion, operation and maintenance of the Improvements, subject to such lenders' reasonable, customary and normal conditions and terms, and/or (b) a certification from the chief financial officer of Developer that Developer has sufficient funds for such construction, and that such funds have been committed to such construction, and/or other documentation satisfactory to the Agency as evidence of other sources of capital sufficient to demonstrate that Developer has adequate funds to cover the difference between the total cost of the acquisition of the Sites, and construction and completion of the Improvements, less financing authorized by those loans set forth in subparagraph (a) above. The Agency Executive Director shall approve or disapprove such evidence of financing capacity or commitments within fifteen (15) days of receipt of a complete submission. Approval shall not be unreasonably withheld, delayed or conditioned. If the Agency Executive Director shall disapprove any such evidence of financing, he or she shall do so by written Notice to Developer stating the reasons for such disapproval Upon receipt of the Agency Executive Director's disapproval of the proposed financing, Developer shall either promptly obtain and submit new evidence of financing to the Director or terminate this Agreement as provided in Section 503 hereof. The Agency Executive Director shall approve or disapprove such new evidence of financing in the same manner and within the same times established in this Section 311.1 for the approval or disapproval of the evidence of financing as initially submitted. If any portion of Developer's financing consists of secured third party construction loans, Developer shall close the approved construction financing at the Closing. 311.2 Conveyance for Financing. The Developer shall not enter into any conveyance for financing prior to the Release of Construction Covenants without the prior written approval of the Agency, which approval Agency agrees to give if any such conveyance for financing is given to a responsible financial lending institution or person or entity ("Lender"). The Developer may enter into a conveyance for financing after the completion of the 26 EXHIBIT 4