Resolution No. 2024-2 (466 Works)

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6 (f) This Agreement and the Note have been duly executed and delivered by the Borrower and constitute the legal, valid and binding agreements of the Borrower, enforceable against the Borrower in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights in general. The enforceability of the Borrower’s obligations under said documents is subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). (g) The Borrower shall use commercially reasonable efforts to invest such capital expenditures in the Project by not later than the Mandatory Project Completion Date and shall work diligently to complete the Project, subject to the Unavoidable Delay provisions of Section 7.12 of this Agreement. The Borrower shall apply all of the proceeds of the Loan toward the costs of the Project and shall finance all remaining costs of the Project from other available funds of the Borrower, including, but not limited to, construction financing. (h) No portion of the proceeds of the Loan will be used to provide any private or commercial golf course, country club, massage parlor, tennis club, skating facility (including roller skating, skateboard and ice skating), racquet sports facility (including any handball or racquetball court), hot tub facility, suntan facility, racetrack, airplane, skybox or other private luxury box, health club facility, facility primarily used for gambling or store, the principal business of which is the sale of alcoholic beverages for off premises consumption. (i) No litigation at law or in equity nor any proceeding before any governmental agency or other tribunal involving the Borrower is pending or, to the knowledge of the Borrower threatened, in which any liability of the Borrower is not adequately covered by insurance and in which any judgment or order would have a material and adverse effect upon the business or assets of the Borrower or would materially and adversely affect the Project, the validity of this Agreement or the performance of the Borrower’s obligations thereunder or the transactions contemplated hereby. (j) No event has occurred and is continuing which with the lapse of time or the giving of notice would constitute an event of default under this Agreement or the Note. Section 2.3. Loan . The City will fund the Loan on an annual draw basis over a three (3) year period with each draw amount equal to the sum of approximately $116,000 per home the Borrower expects to construct each year (the “Draw Amount”) by making tax increment revenues then currently on deposit in the allocation fund for the South Side Allocation Area of the South Side Development Area available to the Borrower as provided herein. The Borrower acknowledges and agrees that such tax increment revenues equal to the annual Draw Amount are subject to annual appropriation by the Redevelopment Commission. Such Loan is being evidenced by the execution and delivery by the Borrower of the Note substantially in the form attached hereto as Exhibit A. To request a draw on the Loan, the Borrower shall submit a written draw request to the City’s Department of Community Investment (the “Department”) prior to the start of each construction season indicating the Draw Amount and including a plan of construction detailing the number, type and location of homes the Developer will construct in that next following construction season (the “Annual Plan”). The Annual Plan shall include a certification of the Borrower that the Borrower has sufficient private financing that, when added to the Draw Amount,