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Loan Agreement <br />San Leandro and Citizens' Housing Corporation <br />Page 4 of 4 <br />Before disbursement of the Loan funds, Developer shall submit to the City acceptable evidence of financing <br />for the balance of the project cost. The project costs far this purpose includes both acquisition and <br />rehabilitation. <br />SECTION 2.10 LENDER STATUS <br />Developer recognizes and agrees that City is not a commercial lending institution, but a municipal <br />corporation exercising its authority to protect the health, safety and welfare. Any duties or obligations which <br />a commercial lending institution may have with Developer shall not apply to this transaction except as set <br />forth herein and in the Loan Documents. <br />ARTICLE III: CONDITIONS PRECEDENT <br />The obligation of City to make this Loan contemplated hereunder is subject to the fulfillment of the following <br />conditions: <br />SECTION 3.01 APPROVAL OF CITY'S COUNSEL <br />All legal matters incidental to City's commitment to issue the Loan hereunder shall be satisfactory to <br />counsel of City, including the form, validity and enforceability of this Agreement and herein referenced <br />agreements. <br />SEGTION 3.02 AUTHORIZATION TO EXECUTE DOCUMENTS <br />Developer hereby covenants that Developer has full power and authority to enter into this transaction. <br />SECTION 3.03 APPROVAL OF OTHERS <br />Developer shall have secured all necessary approvals or consents required with respect to this transaction, <br />if required, by any governmental bodies having jurisdiction with respect to any activity contemplated in <br />accordance with the use of proceeds of the Loan. <br />Developer shall have additionally secured all necessary approvals or consents required with respect to this <br />transaction by any mortgagee, creditor, or other party having any financial interest in Developer. <br />SECTION 3.04 COMPLIANCE <br />The representations and warranties contained herein shall be true on and as of the date of the signing of <br />this Agreement with the same effect as though such representation and warranties have been made on and <br />as of such date, and on such date no event of default as defined in Article IV herein (Event of Default) and <br />no condition, event or act which, with the giving of notice or the lapse of time or both would constitute an <br />Event of Default, shall have occurred and be continuing or shall exist. <br />ARTICLE IV: AFFIRMATIVE COVENANTS <br />4 <br />