1996 NS Project Homestart Agreement

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5.5 Prior to disbursement, the Borrower shall furnish the Agency evidence of leasehold mortgage title insurance as discussed in section 3.2. The Borrower shall also provide a survey prepared by a surveyor, satisfactory to the Agency showing the boundaries of the Property, the location of any existing or proposed improvements, the courses and distances to and names of the nearest intersecting public streets or roads, the dimension and location of any and all set back lines, building lines, or side lines, if any, and all streets, roads, rights-of-way, easements, or similar matters affecting the Property. Prior to final disbursement, Borrower shall submit an As-Built survey conforming to the Agency's requirements showing, among other things, all the improvements constructed with the Loan proceeds. 5.6 Prior to disbursement, the Borrower shall furnish the Agency the executed original Promissory Note and the original Deed of Trust and Regulatory Agreement evidencing proper recordation at the Orange County Register of Deeds Office. The Borrower shall also furnish a Title Insurance policy. Certificates of Insurance evidencing property and construction insurance meeting the requirements of Sections 3.1 and 3.4 of this Commitment Letter must be submitted to the Agency by the Borrower prior to any disbursement of construction funds. 6. Procurement, Financial Management, and Audit 6.1 The Borrower shall establish procurement and contracting procedures which ensure that procurement and contracting actions will be properly managed. Written contracts shall be used for all services paid for by this Loan. The Agency shall preapprove all procurement and contracting procedures, and the Borrower agree to submit its proposed procurement and contracting procedures to the Agency within thirty(30) days from the date of acceptance of this Commitment Letter. 6.2 Annually, the Borrower shall use its own resources and procedures to arrange for a financial audit by an independent certified public accountant. The audit must comply with the requirements of General Statute 143-6.1, and must be filed with the State Auditor and with the Joint Legislative Commission in each fiscal year that Program funds are received. Audit reports must also be submitted to the Agency within 90 days from the end of the Borrower's fiscal year. In addition to the standards prescribed by the State Auditor, the Borrower must, if applicable, secure audits that meet the standards for financial and compliance audits as set forth in OMB Circular A-128 ("Audits of State and Local Governments") or OMB Circular A-133 ("Audits of Institutions of Higher Education and Other Nonprofit Institutions"). Also, a corrective action plan for any audit findings and recommend- ations in connection with an audit shall be submitted with the audit report. 6.3 Before funds may be disbursed, each private, nonprofit Borrower must be in compliance with General Statute 143-6.1. This statute requires that the Borrower submit to the Agency notarized copies of its policy addressing conflicts of interest that may arise involving any member of the Borrower's management, board of directors or other governing body. The policy shall address situations where any of these individuals or their families may directly or indirectly benefit, except in their official capacity, from the disbursement of State funds, and shall include actions to be taken to avoid conflicts of interest or the appearance of impropriety. 6.4 The Borrower agrees to establish an account in its own general ledger for funds received under this commitment and funding agreement and the funds shall be accounted for separately from amounts received from all other sources. 7