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I ( , , SECTION 3. PERFORMANCE OF SERVICES BY THE CITY AND THE LEAD ENTITY A) The City hereby agrees to and shall perform the following services: 1) Market the Program to potential Eligible Borrowers. 2) Determine the eligibility of a potential Eligible Borrower with respect to items 1) through 4), inclusive, of the definition thereof. 3) Upon determination of eligibility in accordance with the immediately preceding item 2), certify such determination in writing to the Participating Bank and refer the potential Eligible Borrower to the Participating Bank, if such potential Eligible Borrower has not met with representatives of the Participating Bank regarding a First Mortgage Loan. 4) Upon the signing of a written purchase agreement by the Eligible Borrower and owner of the Eligible Property, determine whether a potential Project Site meets the requirements of item 5) of the definition of Eligible Property and certify such determination in writing to the Participating Bank. (b) To comply with the immediately preceding part (a), the City shall, before transfer of the ownership interest, (1) inspect the dwelling unit for any violations of the City's Housing Code and for any defects which pose a danger to health and safety, and (2) notify the Eligible Borrower, the owner, the Participating Bank, and the relator, if any, of the work needed to correct the violations or cure the defects and the time by which same must be completed. 5) Determine that a potential Project Site meets the requirements of items 1), 2) and 3) of the definition of "Eligible Property" and certify such determination in writing to the Participating Bank. 6) Inform the Eligible Borrower of the lead-based paint hazard guidelines as set forth in section 92.355 of the HOME Program. B) The City shall have no duty, responsibility or liability with respect to the determination of the creditworthiness of any Eligible Borrower. _ C) Upon receipt of a disbursement request in the form of Exhibit D to the Homebuyer Agreement (a "Request for Disbursement") with respect to a Consortium HOME Loan all or a portion of the proceeds of which will be used as downpayment assistance, the Lead Entity shall promptly disburse to the City the amount requested in such Request for Disbursement in the form of a check jointly payable to the Eligible Borrower and the Participating Bank's agent to be held in escrow for the benefit of the Eligible Borrower. In no event shall such disbursement be later than the date and time at which the closing of the related First Mortgage Loan of the Eligible Borrower is scheduled to occur. 4