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requested by the Executive Director, City shall have received a certificate to that effect <br />signed by Developer's Representative. <br />4.2 Disbursement Procedures for Loants <br />(a) The Loan proceeds shall be disbursed to Developer to finance the constriction of <br />the Property (as evidenced in Exhibit C). The Loan proceeds shall not be used for any <br />purpose other than for construction costs, including a Developer fee and soft costs related to <br />development of the Project (costs all subject to City's prior review). <br />(b) Developer shall provide City with monthly constriction reports regarding status <br />of constriction and notify City staff of construction meetings. <br />4.3 Any Disbursement. City's obligation to make any disbursement of the funds <br />(including the first and final disbursements) is subject to the satisfaction of the following <br />conditions precedent: <br />(a) Satisfactory Progress. The Executive Director shall be satisfied, <br />based on inspections performed or other reliable infonnation, that the construction is <br />progressing satisfactorily in conformance with all applicable laws and other requirements <br />(including HOME regulations). <br />(b) Condition of Title. Either (i) the Executive Director reasonably <br />believes that no event has occurred execution of the documents that would give rise to a <br />colorable claim against the Property (e.g., a mechanic's lien) superior to the claim of City <br />against the Property with respect to the subject disbursement, or (ii) City must have <br />received, at Developer's expense but payable out of the loan proceeds, from the title <br />insurer who issued City's LP -10 Title Policy, all endorsements thereto then reasonably <br />required by City. <br />(c) Representations and Warranties. The representations and <br />warranties of Developer contained in this Agreement and the other City Loan Documents <br />shall be correct as of the date of the disbursement as though made on and as of that date. <br />(d) No Default. No Event of Default by Developer shall remain <br />uncured and no event shall have occurred which, with the giving of notice or the passage <br />of time or both, would constitute an Event of Default by Developer. <br />4.4 Final Disbursement. City's obligation to disburse that portion of the construction <br />portion retained pursuant to Section 4.10 is subject to the satisfaction of the following <br />additional conditions precedent: <br />(a) Construction Complete. The constriction shall be complete. <br />(b) Certificate of Occupancy Issued. Any portion of the construction <br />requiring inspection or certification by any Govermnental Authority shall have been <br />9 <br />