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If the Property is sold, refinanced, transferred, the use changes during the term of <br /> the Agreement (except as may be approved by the City per Section D below), or the <br /> Agency is materially out of compliance with the terms and conditions of this <br /> Agreement and continues out of compliance after notice and the expiration of any <br /> period for cure, the loan amount and any accrued interest shall be immediately due <br /> and payable to the City. <br /> The Loan is provided to the Agency for the undertaking and performance of the <br /> Project. The Loan may be amended from time to time in the manner described <br /> elsewhere in this Loan Agreement, so long as the same remains consistent with the <br /> object of Exhibit A, as now or hereafter amended. The sum of any amendments to the <br /> Loan and this Loan Agreement may only be expended in accordance with the budget <br /> contained in Exhibit B attached hereto, which is incorporated herein by reference, as <br /> may hereafter be amended (the "Project Budgef'). <br /> The Agency shall manage the Project so that Project activity costs do not exceed the <br /> Project Budget. Further, the Agency shall absorb all costs in excess of the authorized <br /> Loan amount. <br /> C. Promissory Note; Deed of Trust <br /> The Loan shall be evidenced by a non-recourse Promissory Note of the Agency in the <br /> form of Exhibit C attached hereto and incorporated herein by this reference. <br /> The Promissory Note shall be secured by a Deed of Trust,which the Agency shall execute, <br /> in the form of Exhibit D attached hereto and incorporated herein by this reference (the <br /> "Deed of Trust"). The Deed of Trust shall secure repayment of all funds provided under <br /> this Loan Agreement and shall be recorded against all of the Property constituting the <br /> Project. <br /> Prior to execution of the Deed of Trust for real property to be constructed under this Loan <br /> Agreement, the Agency shall submit to the City verification of ownership interest in the <br /> property and of mortgage balances and recorded liens against the real property to be <br /> improved. <br /> D. Assignment of Obligations <br /> Except as set forth herein, the Agency shall not assign any of its obligations under this <br /> Loan Agreement, but shall remain obligated at all times to perform according to the terms <br /> of this Loan Agreement. <br /> E. Covenant Agreement; Priority Agreement <br /> The Agency shall execute the Use Restriction Covenant Agreement. From and after the <br /> date of the closing of construction financing for the Colby Avenue Youth Center project <br /> (the "Financing Closing"), except as may be provided in a fully executed Priority and <br /> Subordination Agreement between the respective lenders and covenant beneficiaries in <br /> connection with the financing of the Colby Avenue Youth Center project (the "Priority <br /> Agreement"), in a form acceptable to the City, the Covenant Agreement shall remain prior <br /> and superior to any additional liens, encumbrances, or financing instruments secured by <br /> or in any way associated with the Project that would otherwise have priority over the <br /> Loan Agreement <br /> Cocoon House <br /> Page 3 of 51 <br />