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i I SECTION 4. PERFORMANCE OF SERVICES BY THE PARTICIPATING BANK The Participating Bank hereby agrees to and shall perfonn the following services: A) Market the Program to potential Eligible Borrowers. B) Pre-qualify the potential Eligible Borrower and accept applications for First Mortgage Loans from potential Eligible Borrowers upon referral by the City or otherwise; verify Eligible Borrower is providing at léast three percent of purchase price from its own funds. C) Review all applications for First Mortgage Loans and other infonnation and certifications submitted by City and/or a potential Eligible Borrower, as applicable, and determine whether to grant or deny a First Mortgage Loan in accordance with its standard underwriting guidelines for a purchase money first mortgage loan; provided, however, that the value of an Eligible Property for the purpose of detennining whether to grant or deny a First Mortgage Loan shall be based upon the value of such Eligible Property. D) Detennine whether the Project Site meets the requirements of item 4) and 6) of the defInition of "Eligible Property" and verify that it has received written evidence from the City that the Project Site meets the requirements of items 1),2), 3) and 5) of such defInition. E) Determine the Participating Bank Rate on the First Mortgage Loan and determine that such Rate does not exceed the Below-Market Interest Rate. If at any time the Participating Bank Rate exceeds the Below-Market Interest Rate, the Participating Bank shall so notify the City in writing. F) Advise each potential Eligible Borrower, in writing, of its decision to grant or deny a First Mortgage Loan within thirty (30) days of the Participating Bank's receipt of a comDleted loan application and any other documentation necessary to make such decision; and immediately thereafter advise the City of whether each potential Eligible Borrower has been granted a First Mortgage Loan under the tenns contained herein. As used in this section completed loan application means the day which the Participating Bank receives all infonnation required by the loan application. G) Calculate and supply the City with the amount of the matching contribution for each First Mortgage Loan in accordance with §92.220 of the HOME Program, which at the date of this Agreement provided that such contribution shall be equal to the present discounted cash value of the yield foregone on each such First Mortgage Loan with the measure of a market rate yield being a rate equal to the lO-year Treasury note plus 200 basis points. H) Conduct, or cause to be conducted, for each Eligible Borrower, and require Eligible Borrower to participate in, pre-purchase counseling program and pay all costs with respect to such program. The pre-purchase counseling program will include, but not be limited to, the topics described in Exhibit E hereto; provided, however, that if the Eligible Property is a two-family structure, the Participating Bank will also conduct, or cause to be 5