SANTA ANA ARTS COLLECTIVE, L.P. (META HOUSING PROJECT) - 2017

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B. HOME Promissory Note and Deed of Trust. The HOME Loan shall be evidenced by the HOME Loan Promissory Note in the form attached hereto as Exhibit D. The HOME Loan shall be secured by the HOME Loan Deed of Trust in the form attached hereto as Exhibit C. The HOME Deed of Trust shall be a deed of trust encumbering the Property, subordinate to the Senior Loan(s) made to Developer. C. HOME Loan Terms. The terms and conditions of the HOME Loan are as set forth in the HOME Loan Promissory Note which is a residual receipts note. The HOME Loan Promissory Note shall be subordinate to the Senior Loan, and shall continue in full force and effect for the entire HOME Compliance Period. 6. CONDITIONS TO DISBURSEMENT OF LOAN PROCEEDS 6.1 Conditions Precedent. City's obligation to disburse the Loan Amount(s) is subject to the satisfaction, or waiver by the Executive Director, of the following conditions precedent: (a) Loan Documents. Developer shall have delivered to the Escrow Holder, signed by the authorized officer or officers of Developer, with such signature(s) aelmowledged where necessary, each of the following documents: (i) this Loan Agreement; (ii) the HOME Loan Promissory Note; (iii) the HOME Deed of Trust; (iv) the Affordability Restrictions on Transfer of Property, and; (v) the Notice of Affordability. (b) Title Insurance. City shall have received an ALTA Extended (LP -10) Loan Policy (6-17-06), or evidence of a commitment therefore satisfactory to City, issued by First American Title Insurance Company and in form and substance satisfactory to City, together with all endorsements and binders required, naming City as the insured, in a policy amount of not less than the total HOME Loan Amount, showing Developer as the fee owner of the Property and insuring the HOME Deed of Trust to be valid priority liens on the Property. This Agreement, the HOME Promissory Note, and the HOME Deed of Trust, shall all be subordinate to any Senior Loan Note and Senior Loan Deed of Trust and to the AHSC Loan Documents. (c) Affordability Restrictions on Transfer of Property. Developer 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, Developer 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 ("H&S") sections 50052.5 and 33334.3, as applicable. Except as may be required in connection with the AHSC Loan, the City's