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05-27-2026 Council Packet
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05-27-2026 Council Packet
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<br />42 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />Fund, the Borrower should pay any portion of the Project Costs as required herein, the Borrower shall not <br />be entitled to any reimbursement therefor from the Governmental Lender, nor shall the Borrower be entitled <br />to any diminution of the amounts payable under this Agreement or under the Borrower Note. <br />Section 9.10 Right to Retain the Engineering Consultant. <br />(a) The Funding Lender, or the Controlling Person on behalf of the Funding Lender, <br />shall have the right to retain, and at the Borrower’s cost and expense, the Engineering Consultant to perform <br />various services on behalf of the Controlling Person, including, without limitation, to make periodic <br />inspections for the purpose of assuring that construction of the Improvements to date is in accordance with <br />the Plans and Specifications, to advise the Controlling Person of the anticipated cost of and time for <br />completion of construction of the Improvements and to review all construction contracts and subcontracts. <br />(b) The fees of the Engineering Consultant during the performance of the construction <br />shall be paid by the Borrower in accordance with Section 2.2(b) hereof. <br />(c) Neither the Controlling Person, Funding Lender nor the Engineering Consultant <br />shall have any liability to the Borrower on account of (i) the services performed by the Engineering <br />Consultant, (ii) any neglect or failure on the part of the Engineering Consultant to properly perform its <br />services, or (iii) any approval by the Engineering Consultant of construction of the Improvements. Neither <br />the Controlling Person nor the Engineering Consultant assumes any obligation to the Borrower, the General <br />Partner or any other Person concerning the quality of the Work performed or the absence of defects from <br />the Improvements. <br />Section 9.11 Inspections. The Borrower agrees to provide and cause to be provided to the <br />Controlling Person and its authorized agents, at all times, facilities commonly made available by <br />responsible general contractors for the inspection of the Improvements, and to afford full and free access to <br />the Controlling Person and its authorized agents to all plans, drawings and records with respect to the <br />construction of the Improvements. The Borrower further agrees to promptly send to the Controlling Person <br />a copy of all construction inspection reports made by the Borrower’s Architect or engineer. <br />Section 9.12 Initial Advances. The right of the Borrower to draw the initial Advance on the <br />Issue Date shall be subject to the satisfaction of the conditions precedent listed on Part A of Schedule 6 <br />attached hereto. <br />Section 9.13 Subsequent Advances. The right of the Borrower to draw any subsequent advances <br />of funds shall be subject to the satisfaction of the conditions listed on Part B of Schedule 6 attached hereto. <br />Section 9.14 Construction Information and Verification. From time to time, within ten (10) <br />Business Days after the written request of Controlling Person, Borrower shall deliver to Controlling Person <br />any and all of the following information and documents, to the extent applicable to the construction or <br />renovation of the Project Facilities, that Controlling Person may request, all in forms acceptable to <br />Controlling Person, as applicable: <br />(a) Current Plans and Specifications for the Improvements certified by the Architect <br />as being complete and accurate, and a line item cost breakdown for the proposed construction of the <br />Improvements; <br />(b) A current, complete and correct list showing the name, address, telephone number <br />and license information of each contractor, subcontractor and material supplier engaged in connection with <br />the construction of the Improvements, and the total dollar amount of each contract and subcontract
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