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
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