Agmt 2006 Mercy Housing California XXXIII (4)

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thereof to Developer. In such event, Developer shall be liable for, and Agency shall be entitled to reimbursement from Developer for all costs and expenses incurred by Agency associated with and attributable to the curing of the default or breach. Agency shall also be entitled to record a lien upon Developer's leasehold estate in the Property to the extent of such incurred costs and disbursements. 8.6 Holder to be Notified. The provisions of this Article VIII shall be incorporated into the relevant deed of trust or mortgage to the extent deemed necessary by, and in form and substance reasonably satisfactorily to the Agency, or shall be acknowledged by the holder of such instrument prior to its creating any security right or interest in the Property or any interest or estate therein. 8.7 Estoppel Certificates. Either Developer or Agency may, at any time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that, to the knowledge of the certifying party (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, and (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or ifin default, such notice shall describe the nature and amount of any such default. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following the receipt thereof. The Agency Executive Director is authorized to execute any certificate requested by Developer hereunder. ARTICLE IX AGENCY FINANCIAL ASSISTANCE 9.1 Predevelopment Loan. Pursuant to a Predevelopment Loan Agreement dated as of June 5,2006, Agency has agreed to provide a predevelopment loan to Developer in an amount not to exceed Seven Hundred Twenty-Seven Thousand Dollars ($727,000) ("Pre development Loan"). The entire outstanding balance of the Predevelopment Loan is due and payable in full on the Closing Date. 9.2 ConstructionlPermanent Loan. To assist in rehabilitation of the Project, Agency shall provide financial assistance to Developer in the form of a construction/permanent loan (the "Loan") in the maximum principal amount of Five Hundred Eighty-Four Thousand Dollars ($584,000); provided however, the principal amount of the Loan may be increased by an additional Three Hundred Thousand Dollars ($300,000) to cover unforeseen construction cost overruns approved by Agency. Draws against the foregoing sums shall be disbursed in accordance with the Loan Agreement. The Loan shall be evidenced by the Note and shall be secured by the Deed of Trust (as defined in Section 1.3.6). The Deed of Trust shall be recorded against the Property subordinate only to such liens as Agency shall approve in writing. The proceeds of the Loan shall be used as described in this Article IX and the Loan Agreement. The outstanding principal balance of the Loan, shall be due and payable on the 55th anniversary of the date of issuance of a final certificate of occupancy for the Project, but in no event later than the 5ih anniversary of the date of the Note. The entire outstanding principal balance of the Loan shall be payable in full at the earliest of (i) the sale, conveyance or other Transfer of 803698-6 29