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the terms of the Homebuyer Loan Agreement, in which case an interest rate or equity share <br />amount shall apply as provided in the Homebuyer Loan Agreement. <br />315.3 Security for Homebuyer Assistance Loan. Each promissory note <br />evidencing a Homebuyer Assistance Loan shall be secured by a deed of trust to be recorded as an <br />encumbrance to the applicable Affordable For-Sale Unit, substantially in the form attached to the <br />Homebuyer Loan Agreement. The priority of such encumbrance shall be junior and subordinate <br />only to the approved first lien as further provided in Section 315.5. <br />315.4 Disbursement of Homebuyer Assistance Loan; Conditions Precedent <br />Thereto; Developer's Marketing, Disclosure and Housing Counseling. In connection with <br />the first sale of each Affordable For-Sale Unit, the full amount of the proceeds of each <br />Homebuyer Assistance Loan shall be disbursed by the Agency into the escrow established by the <br />Developer and the Homebuyer for such initial sale and conveyance of each applicable <br />For-Sale Unit to the Homebuyer. Disbursement shall occur on demand of the escrow officer, but <br />the Agency shall be provided not less than ten (10) days notice of the estimated closing date, and <br />all conditions precedent to the Agency's obligation to disburse such monies shall have been <br />satisfied by Developer (and the applicable Homebuyer) prior to escrow officer's demand. The <br />proceeds shall only be expended and paid to fund a portion of the applicable Homebuyer's costs <br />of acquisition of the Affordable For-Sale Unit in order to make such unit available at an <br />Affordable Housing Cost. <br />(a) The Agency's obligation to disburse proceeds of the Homebuyer <br />Assistance Loan is expressly conditioned upon and will occur as soon as practicable after each <br />Homebuyer's execution and delivery of the Homebuyer Loan Agreement (including any other <br />documents required thereunder) and in conformity with applicable laws and regulations and all <br />submittals provided thereunder, and such disbursement shall occur concurrently with the <br />recordation of all documents required to be recorded at closing pursuant to the Homebuyer Loan <br />Agreement and attachments thereto, and close of escrow for disposition of such Affordable For- <br />Sale Unit pursuant to the terms hereof. <br />(b) Developer shall be responsible at its sole cost and expense for <br />marketing, housing counseling, disclosures, and sale for and related directly or indirectly to each <br />and all Affordable For-Sale Units to each and all prospective Homebuyers. <br />(i) In connection therewith, Developer shall in any marketing <br />effort relative to the Affordable For-Sale Units fully disclose its obligation to provide the <br />Affordable For-Sale Units and each prospective Homebuyer shall be provided a true and <br />complete copy of the form of the Homebuyer Loan Agreement, and all attachments thereto. <br />(ii) Developer shall cause to be provided to each prospective <br />Homebuyer one-on-one housing counseling couceming such prospective Homebuyer's potential <br />purchase of an Affordable For-Sale Unit, in particular the provisions relating to the Ion-term <br />affordability covenants and restrictions on resale applicable to such Affordable For-Sale Unit. <br />The one-on-one counseling shall be videotaped and a copy of the videotape shall be provided to <br />Agency staff on a DVD within ten (10) days after the counseling session. <br />DOCS001400673 v 141200272-0001 <br />43