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2 <br />1.3 SECURITY. As security for repayment of the Note, Borrower is prohibited from <br />taking any legal or equitable action in a court of competent jurisdiction against Lender’s rights <br />and actions to accelerate collection of payments due upon Lender’s declaration of default. This <br />includes Lender’s right, without exception, to collect loan payments due or in arrears from assessments due and payable to Borrower pursuant to the PBID Law, and to collect any and all <br />delinquent loan payments before payment to any of Borrower’s secured and unsecured creditors. <br />This Loan creates a secured obligation of Borrower, that is not subordinate to any of Borrower’s <br />current or future debts or obligations. <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 />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 capital improvements within the jurisdiction and <br />boundaries of the San Leandro Improvement Association. Specifically, the Loan Proceeds shall be used as follows: <br />Landmark Sign $170,000.00 <br />Bocce Ball Court $90,000.00 <br />Pressure Washer Trailer and Equipment $10,000.00 <br />Additional Public Amenities $15,000.00 (Tables, Chairs, Umbrellas, <br />Concrete Planters, Banner Hardware) __________ <br />Total Loan $285,000.00 <br /> <br />2.2 DISBURSEMENT OF PROCEEDS. Provided that Borrower has satisfied all of the conditions set forth in Section 2.3, the Loan Proceeds shall be disbursed to Borrower within <br />sixty (60) 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 Lender of this Agreement and the Note;