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2 <br />in full on the second(2nd)anniversary of the Effective Date (the “Maturity Date”). <br />Notwithstanding the foregoing, the Lendershall havethe right to accelerate the Maturity Date <br />and declare all sums payable under the Note immediately due and payable upon the occurrence <br />of an Event of Default. <br />1.3 SECURITY. As security for repayment of theNote, Borrower shall execute the <br />Deed of Trust infavor of Lenderas beneficiary pursuant to which Lendershall be provided a <br />lien against Borrower’s interest in the Property. The Deed of Trust shall be dated as of the <br />Effective Date, shall be substantially in the form attached hereto as ExhibitC, and shall be <br />recorded in the Official Records of AlamedaCounty(“Official Records”). The Deed of Trust <br />may be subordinated tosuch liens and encumbrances as Lender shall approve in writing. <br />1.4 PREPAYMENT; ACCELERATION. <br />(a)Prepayment. The Note or any portion of the outstanding principal balance due <br />under the Note may be prepaid at any time and from time to time, without penalty or premium. <br />Any prepayment of principal must be accompanied by interest accrued (if any) but unpaid to the <br />date of receipt of prepayment. Prepayments shall be applied first to accrued but unpaid interest <br />(if any) and then to principal. <br />(b)Due On Transfer. Unless Lenderagrees otherwise in writing, the entire unpaid <br />principal balance and all interest and other sums accrued under the Note shall be due and payable <br />upon the Transfer,absent the prior written consent of Lender, of all or any part of or interest in <br />the Property. “Transfer”shall include any assignment, sale or other conveyance of the <br />Property. <br />ARTICLE II <br />USE AND DISBURSEMENT OF PROCEEDS <br />2.1 USE OF PROCEEDS. Borrower shall use the proceeds of the Loan (“Loan <br />Proceeds”) solely and exclusively for bridge financing to establish a community healthclinic. <br />2.2 DISBURSEMENT OF PROCEEDS. Provided that Borrower has satisfiedall of <br />the conditions set forth in Section 2.3, the Loan Proceeds shall be disbursed to Borrowerwithin <br />fourteen(14)days of the Effective Date. <br />2.3 CONDITIONS PRECEDENT TO DISBURSEMENT OF PROCEEDS. <br />Lender’s obligation to fund the Loan and disburse the proceeds thereof is conditioned <br />upon the satisfaction of all of the following conditions: <br />(a) Borrower’s execution and delivery to Lenderof this Agreement, the Note, and <br />theDeed of Trust; <br />(b) Recordation of the Deed of Trust in the Official Recordsof Alameda County;