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(x) City shall have approved the final plans and specifications for the Proj ect; (xi) Borrower's construction financing for the Project shall have closed or shall close concurrently with City's disbursement of funds for construction, and Borrower shall have delivered to City evidence reasonably satisfactory to City that Borrower has secured binding commitments, subject only to commercially reasonable conditions, for all Project construction and permanent financing; and (xii) Borrower's delivery to City, and City approval of the Project construction contract, budget, and construction schedule. 1.10.2 No Obligation to Disburse Proceeds Upon Default Notwithstanding any other provision of this Agreement, the City shall have no obligation to disburse or authorize the disbursement of any portion of the Loan Proceeds following: (i) the failure of any of Borrower's representations and warranties made in this Agreement or in connection with the Loan to be true and correct in all material respects; (ii) the termination of this Agreement by mutual agreement of the Parties; (iii) the occurrence of an Event of Default under this Agreement, the Regulatory Agreement, the Note or the Deed of Trust that remains uncured beyond any applicable cure period, or the existence of any condition, event or act which upon the giving of notice or the passage of time or both would constitute an Event of Default under any such document. 1.11 Subordination The City agrees to subordinate the Deed of Trust and the Regulatory Agreement to deeds of trust recorded for the benefit of Project construction and permanent lenders provided that such lenders agree to include in their subordination agreement and deeds of trust conditions substantially similar to the following conditions: (i) City shall receive any notices of default issued by such lender to Borrower; (ii) City shall have the right to cure any default by Borrower within sixty (60) days after a notice of default; (iii) City shall have the right to enforce this Agreement without the lender accelerating its debt, provided the City has cured or is attempting to cure any defaults under lender's deed of trust; and (iv) City shall have the right to review and approve the loan documents for any financing secured by the Project, which approval shall not be unreasonably withheld. To implement any such subordination, the City agrees to cooperate with Borrower and execute such subordination agreements that may be reasonably required, in form and content approved by the City Attorney.. ARTICLE II GENERAL REQUIREMENTS 2.1 Rental Agreement, Security Deposits Leases and rental agreements used for HOME - assisted units must comply with Section 92.253 of the federal HOME Regulations, as summarized in Section 11 of the Regulatory Agreement. Borrower shall comply with the requirements pertaining to security deposits as set forth in Section 14 of the Regulatory Agreement. 1908324.5