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<br />{ <br /> <br />( <br /> <br />{ <br /> <br />E. The Consortium HOME Loan shall be subordinated to the Participating <br />Bank Loan to the Eligible Borrower which will be made by the Participating Bank at the same <br />time as the Consortium HOME Loan is made to the Eligible Borrower. The Consortium HOME <br />Loan shall be non-recourse, and the Consortium shall look solely to the real property securing <br />the obligation for repayment thereof as evidenced by the Promissory Note, Consortium Mortgage <br />and other collateral documents. The Eligible Borrower shall not have any personal liability for <br />repayment of the Consortium HOME Loan. <br /> <br />SECTION 3. DISBURSEMENT OF CONSORTIUM HOME LOAN. <br /> <br />A. Time is of the essence in disbursing funds from the Consortium HOME <br />Loan for the acquisition of the Project Site. Disbursements on behalf of the Eligible Borrower <br />for the Eligible Acquisition Costs shall be made against the budget approved under this <br />Agreement, a copy of which is attached hereto as Exhibit C and made a part hereof (the <br />"Approved Budget") in a timely manner so as not to jeopardize the closing of the transaction. <br />Such disbursements will be made for such portion of the Eligible Acquisition Costs approved <br />by the City; provided, however, that, notwithstanding anything to the contrary herein, the total <br />amount disbursed under this Section 3 shall not exceed the approved amount of the Consortium <br />HOME Loan set forth in paragraph B. of Section 2 hereof. The Eligible Borrower shall provide <br />such documentation as may be required by the City on behalf of itself pursuant to this <br />Agreement and the Lead Entity of the Eligible Acquisition Costs as part of the disbursement <br />request. <br /> <br />B. In order to disburse funds for a Consortium HOME Loan with respect to <br />Eligible Acquisition Costs, the Eligible Borrower shall submit a disbursement request for such <br />disbursement to the City upon final approval of the Eligible Acquisition Costs by the City. Such <br />disbursement request (a "Request for Disbursement") shall be in the fonn of Exhibit D attached <br />hereto and made a part hereof. The City, upon review and approval of such request and <br />execution thereof, shall submit such request to the Lead Entity pursuant to the Agency <br />Agreement. In addition to the submission to the City of the Request for Disbursement, the <br />Eligible Borrower shall provide to the City other documentation as may be required by the Lead <br />Entity pursuant to the Agency Agreement. <br /> <br />C. In connection with a disbursement under the immediately preceding <br />paragraph, the Lead Entity shall disburse funds from a Consortium HOME Loan to the City <br />upon submission of a completed Request for Disbursement signed by the Eligible Borrower and <br />approved by the City evidencing proof of Eligible Acquisition Costs to be incurred in accordance <br />with this Agreement. Consortium HOME Loan funds will be disbursed in the fonn of a check <br />jointly payable to the Eligible Borrower and the Participating Bank's title company with respect <br />to Eligible Acquisition Costs. Upon receipt of the Consortium HOME Loan funds by the City, <br />the Eligible Borrower shall endorse the check for deposit and the City will promptly forward <br />such funds to the title company to be held in escrow for the benefit of the Eligible Borrower <br />pending disbursement to the seller. <br /> <br />4 <br />