Laserfiche WebLink
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 the Promissory Note. The obligations of the Agency under <br /> the Promissory Note, as well as its rights and obligations under this Loan Agreement shall <br /> be assigned by the Agency to the Owner pursuant to the terms and conditions of the <br /> Assignment, Assumption and Consent Agreement (as defined below). <br /> The Agency shall cause the Promissory Note to be secured by the Deed of Trust. The <br /> Deed of Trust shall secure repayment of all funds provided under this Loan Agreement for <br /> rehabilitation of improvements to real property pursuant to the terms of this Loan <br /> Agreement. <br /> Prior to execution of the Deed of Trust for real property to be constructed under this Loan <br /> Agreement, the Agency shall cause Owner to submit to the City verification of ownership <br /> interest in the Property and of mortgage balances and recorded liens against the real <br /> property to be 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. Notwithstanding any other provision of this Loan Agreement, the <br /> City consents to the assignment by the Agency of its rights and obligations under this Loan <br /> Agreement and the Promissory Note to the Owner pursuant to the terms and conditions <br /> of the Assignment, Assumption and Consent Agreement in the form of Exhibit F (the <br /> "Assignment Agreement"). <br /> E. Covenant Agreement; Priority Agreement <br /> The Agency shall cause the Owner to execute the Use Restriction Covenant Agreement. <br /> From and after the date of the closing of construction financing for the HopeWorks Station <br /> project and admission of the investor limited partner of Owner (the "Financing Closing'), <br /> except as may be provided in a fully executed Priority and Subordination Agreement <br /> between the respective lenders and covenant beneficiaries in connection with the <br /> financing of the HopeWorks Station project(the"Priority Agreement"), in a form acceptable <br /> to the City, the Covenant Agreement shall remain prior and superior to any additional liens, <br /> encumbrances, or financing instruments secured by or in any way associated with the <br /> Project that would otherwise have priority over the Covenant Agreement, including but not <br /> limited to any deed of trust to which the City may subsequently agree to subordinate the <br /> Deed of Trust it holds. <br /> Except as otherwise provided herein, the Agency shall cause any subsequent mortgagee <br /> or lienholder on the Project to be approved in writing by the City and shall require such <br /> mortgagee or lienholder to agree to subordinate the lien of its security instruments, if any, <br /> to the Covenant Agreement. Notwithstanding the foregoing, the City acknowledges and <br /> Loan Agreement <br /> Housing Hope Properties <br /> Page 3 of 51 <br />