Agmt 2007 Estabrook Senior Housing LP etc

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Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seg., and the Unruh Civil Rights Act, Civil Code Section 51, et seq.. 3.19 Liens and Stop Notices. Until the expiration of the term of the Regulatory Agreement and full repayment of the Agency Loan and City Loan, Developer shall not allow to be placed on the Property or any part thereof any lien or stop notice on account of materials supplied to or labor performed on behalf of Developer. If a claim of a lien or stop notice is given or recorded affecting the Project, Developer shall within thirty (30) days of such recording or service: (a) pay and discharge (or cause to be paid and discharged) the same; or (b) effect the release thereof by recording and delivering (or causing to be recorded and delivered) to the party entitled thereto a surety bond in sufficient form and amount or provide other assurance satisfactory to Agency and City that the claim of lien or stop notice will be paid or discharged. 3.20 Right of A ency to Satisfy Liens on the Property. If Developer fails to satisfy or discharge any lien or stop notice on the Property pursuant to Section 3.19 above, the Agency and City shall have the right, but not the obligation, to satisfy any such liens or stop notices at Developer's expense and without further notice to Developer. In such event Developer shall be liable for and shall immediately reimburse Agency and City for such paid lien or stop notice. Alternatively, the Agency and/or City may require Developer to immediately deposit with Agency the amount necessary to satisfy such lien or claim pending resolution thereof. The Agency and/or City may use such deposit to satisfy any claim or lien that is adversely determined against Developer. Developer shall file a valid notice of cessation or notice of completion upon cessation of construction of the Improvements for a continuous period of thirty (30) days or more, and shall take all other reasonable steps to forestall the assertion of claims or liens against the Property or the Improvements. The Agency and/or City may (but has no obligation to) record any notices of completion or cessation of labor, or any other notice that the Agency and/or City deems necessary or desirable to protect its interest in the Property and the Improvements. 3.21 Insurance Requirements. Developer shall maintain and shall cause its contractors to maintain all applicable insurance coverage specified in Article XI. 3.22 Performance and Payment Bonds (a) Prior to commencement of construction of the Project, Developer shall deliver to the Agency and City copies of payment bond(s) and performance bond(s) issued by a reputable insurance company licensed to do business in California, each in a penal sum of not less than one hundred percent (100%) of the scheduled cost of construction of the Project. The bonds shall name the Agency and the City as co-obligees. (b) In lieu of such performance and payment bonds, Developer may submit evidence satisfactory to the Agency and City of the Developer's ability to commence and complete construction of the Project in the form of an irrevocable letter of credit, pledge of cash deposit, certificate of deposit, or other marketable securities held by a broker or other financial institution, with signature authority of the Agency and City required for any withdrawal, or a completion guaranty in a form and from a guarantor acceptable to Agency and City. Such 956070-4 1 2