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disbursed on a line -item by line -item basis in accordance with the Project Budget and <br />subject to the conditions in this section. In no event shall City have any obligation to <br />disburse any amount for any item in excess of the amount allocated to such item in the <br />Project Budget. Disbursements shall be made only upon Developer's written request in <br />the form of a Disbursement Request showing all costs which Developer intends to fund <br />with such disbursement, itemized in such detail as City may reasonably require, <br />accompanied in each case by (a) invoices and lien releases satisfactory to City, including <br />in any event partial lien releases executed by each contractor and subcontractor who has <br />received any payment for work performed, and (b ) all other documents and information <br />reasonably required by City. Disbursement Requests shall be submitted no less than ten <br />(10) Business Days prior to the date of the requested disbursement, and shall not be <br />submitted more often than monthly. <br />Prior to each disbursement by City of proceeds of the City Loan, Borrower shall deliver <br />to City and to Bank a draw request ( "Draw Request "), and all required supporting <br />information as set forth in the Loan Documents or as otherwise reasonably required by <br />City or Bank in order to provide information for evaluating the requested disbursement <br />pursuant to customary construction lending practices of institutional lenders in Southern <br />California. <br />City and Bank shall notify the other and Borrower of approval or disapproval of each <br />Draw Request within five (5) business days after receipt of the Draw Request, using the <br />Bank's "Disbursement /Change Order Approval Notice ". City and Bank shall have the <br />right, but not the obligation, to discontinue processing Draw Requests unless and until <br />receipt of notification from the other of approval or disapproval of each outstanding <br />Draw Request. <br />6.9 Manner of Disbursement. City may make any disbursement by check payable <br />to Developer; or on a voucher basis; or by check payable jointly to Developer and any <br />contractor, subcontractor or other claimant; or directly to any such claimant; or by any <br />other means reasonably selected by City. Disbursement will be made fifteen (15) days <br />from approval. <br />6.10 Cost Overruns. In the event that, at any time and for any reason, (a) the <br />actual cost reasonably estimated by City or Developer to be required to complete all <br />matters included in any line item in the Project Budget exceeds the amount allocated to <br />that line item in the Project Budget, (b) rehabilitation costs for any matters not covered by <br />a specific line item have been or will be incurred, or (c) the undisbursed portion of the <br />rehabilitation portion is or may be insufficient to pay all rehabilitation costs that may be <br />payable under the City Loan Documents or otherwise in connection with the <br />rehabilitation, Developer shall, within ten (10) days after it receives written notice thereof <br />from City of any of the foregoing matters, do one or more of the following: <br />(a) provide satisfactory evidence to City that Developer has <br />previously paid such excess or otherwise provided for such insufficiency (collectively, <br />the "Excess Cost ") with funds from a source other than the City Loan; <br />(b) reallocate sufficient funds to pay the Excess Cost from funds <br />11 <br />251 -17 <br />