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2. Period of Performance <br /> 2.1 The Agency requires that all other public and private sources of project financing <br /> be unconditionally committed to the project before this Loan is closed. The written <br /> commitments must be submitted to, and approved by, the Agency within thirty (30) <br /> days from the date of this Commitment Letter, and prior to construction. <br /> 2.2 The Borrower agrees to proceed diligently with the construction of the Project <br /> described in the Application. Construction shall begin no later than January 1, <br /> 1997. Failure to initiate construction under a valid building permit by this date <br /> may result in termination of this Commitment Letter by the Agency. <br /> 2.3 A final certificate of occupancy shall be obtained for the project no later than <br /> September 1, 1997. Failure to obtain the final certificate of occupancy by this date <br /> shall be a default under the Loan Documents. The certificate of occupancy shall be <br /> delivered to the Agency at least fifteen business days prior to the Conversion Date <br /> or within 395 days of the date of the Promissory Note, whichever is earlier. <br /> 2.4 The Borrower shall notify the Agency in writing within five business days of any <br /> occurrence which makes it unlikely that these dates can be met. Time is of the <br /> essence with regard to all time periods and limitations set forth in this <br /> Commitment. Extensions of time may be granted by the Agency at its sole <br /> discretion. <br /> 3. Insurance Requirements <br /> 3.1 The Borrower shall cause the buildings on the project premises and all <br /> improvements thereto, and the fixtures and articles of personal property financed <br /> by the Loan to be insured against fire and other hazards customarily covered by <br /> standard extended coverage endorsement. Such insurance shall be written by <br /> companies and in forms satisfactory to the Agency. The Borrower shall assign and <br /> deliver a policy or endorsement to the Agency within fifteen (15) days of the Loan <br /> closing, and the Agency shall be named as mortgagee for the interest of the Loan. <br /> The coverage shall be in an amount at least equal to the amount of the Loan and <br /> shall be maintained continuously throughout the term of the Loan. If the project is <br /> in a floodplain area then flood insurance will be required. <br /> 3.2 The Borrower shall obtain a leasehold mortgage title insurance policy in the <br /> amount of the Loan. A binder or commitment shall be delivered to the Agency at <br /> least fifteen business days prior to the closing for the Loan, and the Agency shall be <br /> named as insured lender. The original policy shall be delivered to the Agency <br /> within ten business days after closing the Loan. The title insurance coverage must <br /> insure that the Deed of Trust to the Agency is a valid first priority lien against the <br /> Borrower's Leasehold interest in the Project, and that the Project is subject only to <br /> such general easements, unviolated restrictions, ad valorem taxes for the current <br /> year and any other matters which are acceptable to the Agency. <br /> 3.3 The Borrower shall carry comprehensive liability insurance on an occurence basis <br /> against claims for personal injury including, without limitation, bodily injury, death <br /> or property damage occuring on, in, or about the premises and the adjoining streets, <br /> sidewalks, and passageways, with respect to the operation of the Project in such <br /> amounts as may reasonably be required by the Agency. <br /> 4 <br />