West Orange Township_Fourth Round HEFSP_Final Draft

‘The Owner shail not approve or allow to occur any material change in the scope of plans and specifications for the Project without the express approval of the Agency. Construction or rehabilitation shall at all times be subject to the discretionary inspection, discretionary review, regulation and approval of the Agency and its duly authorized representatives, Any such inspection. regulation. review or approval of the Agency shall be solcly for its benefit for the purpose of assuring that the programs and goals of the Project are being fulfilled. The Owner shali not knowingly do any act which would cause the relcase, in whole or in part, of the surety bond or bonds issued in connection with the Architect’s Contract or Construction Contract, as applicable, including. without limitation, deviation from the payment schedule, waiver of any material requirements imposed on the architect or any contraclor or subcontractor under the Architect’s Contract or Construction Contract. as applicable, or consent to any major change in the in the scope of plans and specifications or scope of the work, unless such act would not cause any release becausc the surety has consented thereto. Section 9. Funding and Conditions Precedent toa Advance. A. Funding of Construction or Kehabilitation: Upon and subject to the terms and conditions of this Agreement, the Mortgage and Mortgage Note, the Agency agrees to advance and disburse the principal sum of $239.922 as follows: The balance of the Principal Sum of $239,922 remaining after disbursement of acquisition costs shall be made only after the Agency has received and approved, subject to its sole discretion, all items required for closing on the Agency Document Checklist for Construction and Permanent Financing. a B. Conditions Precedent to: Advance: The Agency's obligations to make the other disbursement under the Mortgage shall be subject to the satisfaction of the followmg conditions precedent, any of which may be waived in whole or part by the Agency. 1. Each of the Owner's covenants, agrcements, representations and warranties contained in this Agreement shail continue to be true and shall not be breached. 2. applicable, the full amount of the previous advance shall have been expended for Land acquisition, costs and discharge of any related lien. 3. Ail work performed and material furnished for the Project shall be in

he full amount of the previous advance shall have been expended for Land acquisition, costs and discharge of any related lien. 3. Ail work performed and material furnished for the Project shall be in accordance with the plans and specifications for the Project and ali work shali have been properly performed to the satisfaction of the Agency. 4. No event shall have occurred and no conditions shall exist that would prevent the advance from becoming a valid second mortgage lien on the Project and the Land or secured by a 10