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ARTICLE 11 <br /> CONSTRUCTION OF THE IMPROVEMENTS <br /> 2.1 CONSTRUCTION SCHEDULE. Participant shall adhere to the Project Time Schedule <br /> attached hereto under the Scope of Work as Exhibit D. Participant must obtain written approval from the <br /> City for any changes to the Construction Schedule, <br /> ARTICLE III <br /> AFFIRMATIVE COVENANTS <br /> 3.1 USE OF FUNDS. Participant covenants that it shall use the Loan Proceeds solely for the <br /> purpose of financing the Improvements in accordance with Section 1.4. <br /> 3.2 COMPLIANCE WITH LAWS; LICENSES; PERMITS; ETC. <br /> 3.2.1 COMPLIANCE WITH LAWS. Participant covenants to comply with all federal, <br /> state and local laws, regulations, ordinances and rules applicable to the Property and the Improvements, <br /> including without limitation, all applicable requirements of state and local building codes and regulations, <br /> and all applicable statutes and regulations relating to accessibility for the disabled. <br /> 3.2.2 LICENSES; PERMITS; ETC. See General Provisions in Exhibit F. <br /> 33 INSURANCE. See General Provisions in Exhibit F. <br /> 3.4 MAINTENANCE. Participant shall maintain the Improvements in a first-class condition and <br /> repair at Participant's own expense for a period of not less than twenty(20)years after completion thereof. <br /> 3.5 INDEMNIFICATION. Participant shall indemnify, defend (with counsel reasonably <br /> acceptable to City), and hold harmless the City and its respective elected and appointed officials, officers, <br /> agents, and employees (collectively the Indemnitees"), from and against, and shall pay on demand, any <br /> and all losses, liabilities, damages, costs, claims, demands, penalties, fines, orders, judgments, injunctive <br /> or other relief, expenses and charges (including attorneys' fees and expenses of attorneys) (collectively <br /> "Liabilities") arising directly or indirectly in any manner in connection with or as a result of(a) any breach <br /> of Participant's covenants under the Loan Documents, (b) any failure of Participant's representations and <br /> warranties to be true and correct in all material respects when made, (c) injury or death to persons or <br /> damage to property or other loss occurring on the Property, whether caused by the negligence or any other <br /> act or omission of Participant or any other person or by negligent, faulty, inadequate or defective design, <br /> building, construction or maintenance or any other condition or otherwise, or (d) any claim, demand or <br /> cause of action, or any action or other proceeding, whether meritorious or not, brought or asserted against <br /> any Indemnitee which relates to or arises out of the Property, the Improvements, the Loan, the Loan <br /> Documents, or any transaction contemplated thereby, or any failure of Participant to comply with all <br /> applicable state, federal and local laws and regulations, including without limitation, applicable provisions of <br /> the California Building Standards Code, the Prevailing Wage Laws, and the Americans with Disabilities Act <br /> 4 Capital Improvement Loan Agreement-HCEB <br /> October 1,2017 <br />