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6.2 Disbursement Procedures for Loan. <br />A portion of the Loan proceeds shall be disbursed through Escrow to finance the acquisition <br />of the Property, with other proceeds being used for the construction and /or rehabilitation (as <br />evidenced in Exhibit Q. The Loan proceeds shall not be used for any purpose other than for <br />acquisition costs of the Property and/or rehabilitation/construction costs, including a <br />Developer fee and soft; costs related to development of the Project (costs all subject to City's <br />prior review). The City allows for eligible costs to be paid by HOME loan funds that were <br />incurred not more than 24 months prior to the HOME funds commitment date of this loan <br />agreement in accordance with HOME regulations. <br />6.3 First Disbursement. Agency /City's obligation to make the first disbursement of <br />the Construction and/or Rehabilitation Portion is subject to satisfaction of the following <br />conditions precedent: <br />(a) General Contractor, If the Executive Director has not yet approved <br />the General Contractor, the Executive Director shall have approved the identity and <br />qualifications of the General Contractor. <br />(b) Construction/Rehabilitation Contract. If the Executive Director has <br />not yet approved the Rehabilitation Contract, the Executive Director shall have approved <br />the Rehabilitation Contract. <br />(c) Relocation Plan. If the relocation of any existing tenants is <br />contemplated by the parties, the Executive Director shall have approved a plan for the <br />relocation of such tenants of the Property determined by the Executive Director to be <br />eligible for relocation assistance. <br />6.4 Termination for Failure of Condition. If (a) any of the conditions set forth <br />herein are not timely satisfied or waived by the Executive Director, and (b) Agency /City <br />is not in default under this Agreement, Agency /City may terminate this Agreement <br />without any further liability on its part by giving written notice of termination to <br />Developer. Upon the giving of such notice, all principal, interest and other amounts <br />owing under the Agency /City Loan Note(s) shall be immediately due and payable, <br />regardless of any other specified due date. <br />6.5 Any Disbursement. City's obligation to make any disbursement of the <br />Construction /Rehabilitation Portion (including the first and final disbursements) is <br />subject to the satisfaction of the following conditions precedent: <br />(a) Satisfactory Progress. The Executive Director shall be satisfied, <br />based on his /her own inspections or other reliable information, that the <br />construction/rehabilitation is progressing satisfactorily in conformance with all applicable <br />laws and other requirements (including HOME regulations). <br />(b) Condition of Title. Either (i) the Executive Director reasonably <br />believes that no event has occurred since the Close of Escrow that would give rise to a <br />10 <br />25C -14 <br />