SANTA ANA ARTS COLLECTIVE, LP (META HOUSING CORP) - 2016

Home Browse Search

6.1 Conditions Precedent. City's obligation to disburse the load is subject to the satisfaction, or waiver by the City Project Manager; 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) acknowledged where necessary, each of the following documents: (i) this Loan Agreement; (ii) the Inclusionary Promissory Note ($1,875,000); (iii) the Inclusionary Deed of Trust; (iv) CDBG Promissory Note ($500,000); (v) CDBG Deed of Trust; and (vi) the Affordability Restrictions on Transfer of Property. (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 City Loan Amount, showing Developer as the fee owner of the Property: and insuring the Inclusionary Deed of Trust and CDBG Deed of Trust to be a valid priority lien on the Property. This Agreement, the Inclusionary Promissory Note, Inclusionary Deed of Trust, CDBG Promissory Note, and CDBG Deed of Trust shall all be subordinate to the Senior Loan Note and Senior Loan Deed of Trust. (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. The City's Affordability Restrictions on Transfer of Property shall remain in first position on title and shall not be subordinated. (d) Documents Recorded. This Loan Agreement, the Inclusionary Deed of Trust, CDBG Deed of Trust and the Affordability Restrictions on Transfer of Property shall have been recorded in the Official Records of the County. (e) Request for Notice. For the benefit of City, Escrow Holder shall have recorded a request for notice of default of the Senior Loan (the "Request for Notice of Default"). 9