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be reallocated to "Contingency" and thereafter be available for disbursement in accordance with <br />the terms of this Agreement. <br />6.12 Retainage. City will withhold a Retainage of 10% from each Disbursement for each <br />of the Hard Cost line items of the Project Cost Breakdown (and other line items thereof <br />designated for withholding of retainage) until all conditions to the final Disbursement of Hard <br />Costs have been satisfied. In lieu of City's withholding Retainage, Developer can by written <br />notice to City elect not to draw any overhead or profit as would otherwise be permitted under the <br />Construction Contract until such time as Retainage would otherwise have been released. <br />City shall not retain funds for building materials purchased by Developer for which Developer <br />supplies documentation to City proving payment in full or for soft costs. <br />6.13 Holdback. The retainage otherwise available for disbursement shall be subject to a <br />holdback of one hundred twenty-five percent (125%) of the estimated cost (as determined by the <br />City Project Manager) for "punch-list" items. Such holdback will be released when all punch-list <br />items have been completed to the satisfaction of City. <br />6.14 Waiver of Disbursement Conditions. Unless City otherwise agrees in writing, the <br />making by City of any disbursement with knowledge that any condition to such disbursement is <br />not fulfilled shall constitute a waiver of such condition only with respect to the particular <br />disbursement made, and such condition shall be condition to all further disbursements until <br />fulfilled. <br />6.15 Modification of Disbursement Conditions and Procedures. The City Project Manager <br />shall have the authority to modify the disbursement conditions and procedures set forth herein in <br />order to conform them to the payment provisions of the contract for construction. <br />6.16 Other Terms and Conditions of Loan. <br />A. The Note(s) shall become immediately due and payable, in the event of any of <br />the following: <br />(1) failure to complete the Project within three (3) years of the recording <br />date; <br />(2) violation of any of the use covenants and restrictions contained in this <br />Agreement after the expiration of any applicable notice and cure periods; <br />(3) an Event of Default by Developer which is not timely cured after <br />expiration of any appl_icabl_e notice and cure periods pursuant to the terms of <br />this Agreement. <br />6 .17 Closing Costs and Fees. Developer shall pay (a) all escrow fees and charges, (b) all <br />recording fees and charges on any document recorded pursuant to this Agreement, and (c) the <br />premium for the title insurance required hereunder. <br />13 <br />1076\O1\1333668.1 <br />