80A - JT PH VISTA DEL RIO HOUSING

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interest and other amounts owing under the City Loan Note(s) shall be immediately due and payable, regardless of any other specified due date. 6.5 Any Disbursement. City's obligation to make any disbursement of the Construction Portion (including the first and final disbursements) is subject to the satisfaction of the following conditions precedent: (a) Satisfactory Pro ress. The Executive Director shall be satisfied, based on his/her own inspections or other reliable information, that the Construction is progressing satisfactorily in conformance with all applicable laws and other requirements (including HOME regulations). (b) Condition of Title. Either (i) the Executive Director reasonably believes that no event has occurred since the Close of Escrow that would give rise to a colorable claim against the Property e(~. ., a mechanic's lien) superior to the claim of City against the Property with respect to the subject disbursement, or (ii) City must have received, at Vista Del Rio's expense but payable out of the Construction Proceeds, from the title insurer who issued City's LP-10 Title Policy, all endorsements thereto then reasonably required by City (including, without limitation, CLTA Form 122 -priority of advance endorsements). (c) Representations and Warranties The representations and warranties of Vista Del Rio contained in this Agreement and the other City Loan Documents shall be correct as of the date of the disbursement as though made on and as of that date. (d) No Default. No Event of Default by Vista Del Rio shall remain uncured 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. 6.6 Final Disbursement. City's obligation to disburse that portion of the Construction Portion retained pursuant to Section 6.12 is subject to the satisfaction of the following additional conditions precedent: (a) Construction Complete. The Construction shall be complete. (b) Certificate of Occupancy Issued. Any portion of the Construction requiring inspection or certification by any Governmental Authority shall have been inspected and certified as complete. Vista Del Rio shall request that the Building Department issue a Certificate of Occupancy, a copy of which shall be delivered to the Executive Director, in order for final disbursement to occur. (c) Lien Free. At least one of the following shall have occurred: (i) Thirty-five (35) days shall have passed since the recording of a valid notice of completion for the Construction, and no mechanic's or material man's lien shall be outstanding; or 11 80A-87