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extended in writing by the County and City), at which time the full balance due and <br />owing under the Loan Documents shall be paid by EGM. This payment does not <br />affect the Restrictive Covenant, which will remain in effect until December 31, <br />2051. <br />C.Security for the Loan <br />The Loan shall be evidenced by the Note. As set forth in the Loan Documents, EGM <br />shall execute and deliver for recording the Deed ofTrust, which will secure the Loan <br />as set forth in the Loan Documents. EGM shall also execute and deliver for <br />recording the Restrictive Covenant. <br />II.BUDGET AND LOAN DISBURSEMENT <br />A.Project Budget. The total Loan is not to exceed $4 million, which shall be first used <br />for acquisition costs for the Property and Allowed Project Costs, with the remainder <br />for Project costs as may be preapproved by the County and City, with all such costs <br />incurred between June 1, 2024, an_d December 31, 2026 (or such later date <br />approved in writing by the County and City). <br />B.Property Acquisition Funding. If EGM has already purchased the Property as of the <br />date of this Agreement, the City will provide the acquisition funding by <br />reimbursement as set forth in I1.B.1 below. If EGM has not already purchased the <br />Property as of the date of this Agreement, the City will provide the acquisition <br />funding by making a Loan deposit into the escrow account used for the closing of <br />the sale of the Property to EGM as set forth in I1.B.2 below. <br />1.Acquisition Funding by Reimbursement. <br />a.To receive reimbursement of acquisition costs for the Property, EGM <br />must first submit to the County and City in writing the amount <br />requested and backup documentation. The EGM request must also be <br />accompanied by documentation regarding the total funding that EGM <br />has committed for acquisition, improvement, and operation of the <br />Property and Project. EGM must also submit the Invoice in the form of <br />Attachment 3 to the City-County ILA. <br />b.If the Property is subject to any deed of trust or other lender lien, then <br />EGM must also submit to the County and City the form of subordination <br />agreement that such lender(s) will execute to subordinate lender <br />interest(s) to the Loan, Deed of Trust, and Restriction Covenant. <br />c.Acquisition reimbursement will not be delivered to EGM unless the <br />County and City, after review of EGM's submittals, both determine in <br />writing to approve EGM's acquisition reimbursement request. These <br />approvals are at the sole discretion of the County and City. <br />d.The City may terminate this Agreement if EGM has not purchased the <br />Property by December 31, 2024, unless the City's Director of <br />Community Development determines in writing to extend that date. <br />e.Unless the City's Director of Community Development determines <br />otherwise in writing, acquisition reimbursement will not be delivered <br />to EGM unless the City receives a copy of an appraisal showing that the <br />4