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1. Amount and Purpose. Subject to the terms and conditions of this Agreement, <br />City agrees to make a loan of HOME funds to Developer in the principal amount of up to <br />$1,422,000 (the "City Loan ") for the acquisition and rehabilitation of the Property. <br />2. City /HOME Note and Deed of Trust. The City /HOME Loan shall be <br />evidenced by the City/HOME Loan Note in the form attached hereto as Exhibit F. The <br />City Loan shall be secured by the City /HOME Loan Deed of Trust in the form attached <br />hereto as Exhibit E. The City /HOME Deed of Trust shall be a deed of trust encumbering <br />the Property, subordinate to the Senior Loan(s) made to Developer. <br />3. City /HOME Loan Terms. The terms and conditions of the City /HOME <br />Loan are as set forth in the City/HOME Loan Note which is a residual receipts note. The <br />HOME compliance period is fifteen (15) years, commencing on the date that all work is <br />complete and the Property is fally occupied. <br />6. CONDITIONS TO DISBURSEMENT OF LOAN PROCEEDS <br />6.1 Conditions Precedent. City's obligation to disburse the Loan Amount is subject <br />to the satisfaction, or waiver by the Executive Director, of the following conditions <br />precedent: <br />( a) Loan Documents. Developer shall have delivered to the <br />Escrow Holder, signed by the authorized officer or officers of Developer, with such <br />signature(s) acknowledged where necessary, each of the following documents: <br />(i) the Loan Agreement; <br />(ii) The City/HOME Loan Note; <br />(iii) The City/HOME Deed of Trust, <br />(iv) The Affordability Restrictions on Transfer of Property; and <br />(b) Title Insurance. City shall have received an LP -10 ALTA Lender's <br />loan policy of title insurance (1970 edition), or evidence of a commitment therefore <br />satisfactory to City, issued by First American Title Insurance Company and in form and <br />substance satisfactory to City, together with all endorsements and binders required, <br />naming City as the insured, in a policy amount of not less than the City /HOME Loan <br />Amount, showing Developer as the fee owner of the Property and insuring the <br />City/HOME Deed of Trust to be valid priority liens on the Property. The City /HOME <br />Loan Note and Deed of Trust shall be subordinate to the Senior Loan Note and First <br />Deed. <br />(c) Affordability Restrictions on Transfer of Propert y. Developer <br />shall have delivered to the Escrow Holder, in the form attached hereto as Exhibit G, the <br />Affordability Restrictions on Transfer of Title pursuant to which, among other things, <br />Developer agrees that the Property shall be used only for decent, safe, sanitary and <br />U <br />251 -14 <br />