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3.4 During the course of any construction on the project, the Borrower shall carry, or <br /> cause such other appropriate parties to carry, comprehensive general liability <br /> insurance and workers' compensation insurance for all employees engaged in or <br /> with respect to the premises in such amount as is satisfactory to the Agency. <br /> 4. Disbursement of Funds <br /> 4.1 Subject to the terms of this commitment letter, the Agency agrees to disburse to the <br /> Borrower the Loan proceeds, in an amount not to exceed $150,000.00 (One Hundred_ <br /> Fifty Thousand Dollars) which may be used only for the project development costs <br /> as set forth in the Application and detailed in Exhibit A. Loan funds will be <br /> available for disbursement pursuant to the terms of this Section 4 immediately <br /> after the Loan Documents have been executed and the original Deed of Trust and <br /> Regulatory Agreement have been recorded and returned to the Agency, and all <br /> restrictive conditions have been complied with or released by the Agency. Closing <br /> will occur prior to initiation of construction of the Project, and the retention will be <br /> paid upon the Conversion Date. <br /> 4.2 The proceeds of the Loan are to be used only for approved costs related to the <br /> development of the Project, as outlined in the Application and detailed in Exhibit A <br /> of this Commitment. These costs include new construction costs only. <br /> 4.3 Each request for disbursement for work performed under the general construction <br /> contract shall be accompanied by (i) a written request made by the Borrower <br /> stating the amount of the request and (ii) an Architect's Certificate for Payment <br /> completed and signed by the project architect, the general contractor, and the <br /> Borrower. Each request for disbursement to pay for soft costs directly involved in <br /> the construction and/or development of the Project shall be accompanied by <br /> appropriate invoices or by receipts showing the amounts of payments made for <br /> these expenses. The Agency reserves the right to have all requests for <br /> disbursements and all supporting documentation and evidence to be reviewed by an <br /> independent architect, engineer, building inspector, contractor, or other such <br /> individual whose advice and guidance the Agency decides to seek and rely upon, to <br /> insure that all requests for disbursements are proper and complete and that quality <br /> and quantity of the work performed and/or materials supplied justify the request. <br /> Any review of this nature shall be paid for by the Borrower as an expense <br /> associated with obtaining the Loan. <br /> 4.4 All disbursements must be cost certified at the end of construction by an <br /> independent architect, engineer, building inspector, contractor, certified public <br /> accountant or such other individual whose advice and guidance the Agency decides <br /> to seek and rely upon, to insure that all requests for disbursements are proper and <br /> complete and that the quality and quantity of the work and/or materials justifies <br /> the request. The certification shall state that the construction improvements <br /> identified in the Application have been properly completed to Agency and Borrower <br /> plans and specifications and have resulted in the costs projected in the Application. <br /> Total Project costs must also be certified. Any review of this nature shall be paid <br /> for by the Borrower as an expense associated with obtaining the Loan. The Final <br /> Cost Certification shall be submitted to the Agency within ninety days of the <br /> receipt of the Certificate of Occupancy. <br /> 5 <br />