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ARTICLE II FACILITY ACQUISITION 2.1 ACQUISITION SCHEDULE. Participant shall adhere to the Project Acquisition Time Schedule attached hereto under the Scope of Work as Exhibit D. Participant must obtain written approval from the City for any changes to the Acquisition Schedule. ARTICLE III AFFIRMATIVE COVENANTS 3.1 USE OF FUNDS. Participant covenants that it shall use the Loan Proceeds solely for the purpose of assisting in the acquisition of the Property in accordance with Section 1.4. 3.2 COMPLIANCE WITH LAWS; LICENSES; PERMITS; ETC. 3.2.1 COMPLIANCE WITH LAWS. Participant covenants to comply with all federal, state and local laws, regulations, ordinances and rules applicable to the Property and the Improvements, including without limitation, all applicable requirements of state and local building codes and regulations, and all applicable statutes and regulations relating to accessibility for the disabled. 3.2.2 LICENSES; PERMITS; ETC. See General Provisions in Exhibit F. 3.3 INSURANCE. See General Provisions in Exhibit F. 3.4 MAINTENANCE. Participant shall maintain the Property in a first-class condition and repair at Participant's own expense for a period of not less than twenty (20) years after the Property is acquired. 3.5 INDEMNIFICATION. Participant shall indemnify, defend (with counsel reasonably, acceptable to City), and hold harmless the City and °its elected and appointed officials, officers, agents, volunteers and employees (collectively, the "Indemnitees") from and against, and shall pay on demand, any and all losses, liabilities, damages, costs, claims, demands, penalties, fines, orders, judgments, injunctive or other relief, expenses and charges (including attorney's fees and expenses of attorneys) arising directly or indirectly in any manner in connection with or as a result of Participant's failure to perform its covenants and obligations under this Agreement and any of its activities or operations related thereto, excluding the willful misconduct or the gross negligence of the Indemnitees. 3.6 ANTI-DISCRIMINATION COVENANT. In conjunction with performance of this Agreement, Participant has been made cognizant of and will comply with, all applicable anti-discrimination and equal opportunity guidelines and requirements of the federal, state, or local government 3.7 USE OF PROPERTY: A Participant may not change the use or planned use of any such property (including the beneficiaries of such use) from that for which the acquisition or improvement was Fiscal Year 09-10 ~ San Leandro Capital Improvement Loan Agreement