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<br />ARTICLE II <br />CONSTRUCTION OF THE IMPROVEMENTS <br /> <br />2.1 CONSTRUCTION SCHEDULE. Participant shall adhere to the schedule attached hereto <br />under the Scope of Work as Exhibit B. Participant must obtain written approval from the City for any changes <br />to the construction schedule. <br /> <br />ARTICLE III <br />AFFIRMATIVE COVENANTS <br /> <br />3.1 USE OF FUNDS. Participant covenants that it shall use the CDBG Loan Proceeds solely <br />for the purpose of financing the construction of the Improvements in accordance with Section 1.4. <br /> <br />3.2 COMPLIANCE WITH LAWS. Participant covenants to comply with all federal, state and local <br />laws, regulations, ordinances and rules applicable to the Property and the Improvements, including without <br />limitation, all applicable requirements of state and local building codes and regulations, and all applicable <br />statutes and regulations relating to accessibility for the disabled. <br /> <br />3.3 INSURANCE. Participant shall procure and maintain for the duration of the Agreement, <br />insurance against claims for injuries to persons or damages to property which may arise from or in <br />connection with the performance of the work hereunder by Participant, its agents, representatives, <br />employees, contractors or subcontractors. Consistent with the following provisions, Participant shall <br />provide proof satisfactory to City of such insurance that meets the requirements of this section and under <br />forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work. <br />Participant shall maintain the insurance policies required by this section throughout the term of this <br />Agreement. Participant shall not allow any contractor to commence work until Participant has obtained all <br />insurance required herein for the contractor and provided evidence to the City that such insurance is in <br />effect. Verification of the required insurance shall be submitted and made part of this Agreement prior to <br />execution. Participant shall maintain all required insurance listed herein for the duration of this Agreement. <br /> <br />A. . Participant shall, at its sole cost and expense, maintain Statutory <br />employed directly or indirectly by Partic <br />accident. In the alternative, Participant may rely on a self-insurance program to meet those <br />requirements, but only if the program of self-insurance complies fully with the provisions of the <br />California Labor Code. Determination of whether a self-insurance program meets the standards <br />of the Labor Code shall be solely in the discretion of the City. The insurer, if insurance is provided, <br />or the Participant, if a program of self-insurance is provided, shall waive all rights of subrogation <br />against the City and its officers, officials, employees, and volunteers for loss arising from work <br />performed under this Agreement. <br /> <br />B. Commercial General and Automobile Liability Insurance. <br /> <br />4 <br /> 3238974.3 CDBG Loan <br />Agreement <br /> <br />