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( prohibited from, or elects to discontinue, participating in the Consortium; or ili) If any party hereto fails to fulfill any covenant or obligation that it has under this Agreement; or iv) If any representation or warranty of any party hereto is false in any material respect. B) Upon the occurrence and continuance of an event of default as described in the immediately preceding paragraph A), the obligations herein of the Participating Bank, the Consortium or the City, as non-defaulting parties, shall be voidable at the option of the non- defaulting parties, and the defaulting party shall be liable to the non-defaulting parties, from its own monies, for any and all damages caused thereby, including attorneys' fees; provided, however, that any of the Committed Amount of HOME Funds held at the time by the agent of the Participating Bank for the benefit of an Eligible Borrower shall be disbursed in accordance with the terms of this Agreement provided that such disbursement is still permitted by law; and provided further that, in the event such disbursement is no longer permitted by law, the Participating Bank shall immediately transfer or cause to be transferred, such CorruÍ1itted Amount of HOME Funds to the Lead Entity for deposit, and the Lead Entity shall deposit such balance. upon receipt, in the local account of the HOME Investment Trust Fund of the Consortium. In order to exercise the option under this paragraph B), the non-defaulting party shall give written notice to the defaulting party of its exercise of such option, and upon receipt of such written notice by the defaulting party, the obligations hereunder of such non-defaulting party shall be void and of no further effect. SECTION 11. NON-LIABILITY OF THE PARTICIPATING BANK The Participating Bank shall have no liability to the Consortium or the City, its agents, officers and/or employees, HUD, Eligible Borrowers and/or any person or persons performing any rehabilitation work with respect to an Eligible Property, including each and every one of their respective heirs, legal representatives, successors and/or assigns, for any losses, expenses, damages and/or costs (including attorneys' fees) beyond the undistributed proceeds of any Consortium HOME Loan remaining in its possession, except for any losses, expenses, damages and/or costs (including attorneys' fees) occasioned by the negligence or willful misconduct of any of its officers, employees, attorneys or agents; provided, however, that the Participating Bank, in the absence of bad faith on the part of the Participating Bank, is entitled to conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions required to be delivered to it by this Agreement and believed by it to be genuine and to have been signed or presented by the proper party or parties. 10