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fee owner of the Property and insuring the Deeds of Trust to be valid priority liens on the Property. The Notes and Deeds of Trust shall be subordinate to the Senior Loan Note and Senior Loan Deed of Trust. The Affordability Restrictions on Transfer of Property shall take priority over the Loan Documents pursuant to City /Successor Agency's request. (c) Affordability Restrictions on Transfer of Property. Vista Del Rio shall have delivered to the Escrow Holder, in the form attached hereto as Exhibit B, the Affordability Restrictions on Transfer of Property pursuant to which, among other things, Vista Del Rio agrees that the Property shall be used only for decent, safe, sanitary and affordable rental housing pursuant to the affordability requirements of Code of Federal Regulations ( "CFR ") section 92.252 or 92.254 and California Health and Safety Code sections 50052.5 and 33334.3, as applicable, and all other applicable provisions of the HOME Program, the CRL, and the Section 8 Requirements. (d) Documents Recorded. This Loan Agreement, the Grant Deed, the Deeds of Trust and the Affordability Restrictions on Transfer of Property shall have been recorded in the Official Records of the County. (e) Request for Notice. For the benefit of City and Successor Agency, Escrow Holder shall have recorded a request for notice of default of the Senior Loan (the "Request for Notice of Default "). (f) Insurance. City shall have received evidence satisfactory to the City Attorney and /or Risk Manager that all of the policies of insurance required by Section 19 of this Agreement are in full force and effect. (g) Representations and Warranties. The representations and warranties of Vista Del Rio contained in this Agreement and the other Loan Documents shall be correct as of the Close of Escrow as though made on and as of that date, and if requested by the Executive Directors, City and Successor Agency shall have received a certificate to that effect signed by Vista Del Rio's Representative. (h) No Default. No Event of Default by Vista Del Rio shall have occurred, and no event shall have occurred which, with the giving of notice or the passage of time or both, would constitute an Event of Default by Vista Del Rio under this Agreement, and if requested by the Executive Director, City shall have received a certificate to that effect signed by Vista Del Rio's Representative. 6.2 Disbursement Procedures for Loans. The Loan proceeds shall be disbursed to finance the construction of the Project. The Loan proceeds shall not be used for any purpose other than for development related costs incurred by Vista Del Rio, including developer's fee and soft costs related to development of the Project, all in accordance with the approved Project Budget, with such costs all subject to the prior review by the Executive Directors. All disbursements shall be made as payments and/or reimbursements to Vista Del Rio for costs actually and reasonably incurred by Vista Del Rio for the construction of the Improvements in accordance with the Project Budget, based on detailed invoices and /or bills received from the General Contractor, materials suppliers, consultants and subcontractors that have performed work on the Project, and in accordance with the Intercreditor Agreement by and among the Successor Agency, City, Vista Del Rio, and Senior Lender, to be executed at the Closing. No portion of the Loans shall be disbursed prior to the Close of Escrow. Subject to satisfaction of all Conditions Precedent set forth herein, including submittal of 13 DOC SOC/ 1475221 v 10/200272 -0004