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r ?P1GINAL
<br />DEPOSIT AGREEMENT FOR CHFA'S ADVANCE OF STATE /LOCAL LOAN FUNDS
<br />This Agreement is made as of this 9th day of November 1988, by and
<br />among EDEN HOUSING, Inc., a California nonprofit corporation ( "the Developer "),
<br />whose address is 22941 Atherton Street, Suite D, Hayward, California 94541,
<br />CALIFORNIA HOUSING FINANCE AGENCY, a public instrumentality and a political
<br />subdivision of the State of California ( "CHFA "), whose address is 1121 "L"
<br />Street, 7th Floor, Sacramento, California 95814, the CITY OF PLEASANTON,
<br />CALIFORNIA, a municipal corporation (the "City" or "Depositor ") whose address
<br />is 123 Main Street, Pleasanton, California 94566 and the BANK OF PLEASANTON
<br />(the "Depository "), whose address is 555 Peters Avenue, Pleasanton, California
<br />94566.
<br />Whereas, the City, as the construction lender, entered into a Building
<br />Loan Agreement with the Developer for the construction of a 200 -unit rental
<br />housing project for elderly persons in the City of Pleasanton known as Ridge
<br />View Commons (the "Project "); and
<br />Whereas, the Developer has obtained a firm commitment from CHFA for the
<br />permanent financing of the Project; and
<br />Whereas, CHFA's permanent loan will consist of two separate loans secured
<br />by first and second deeds of trust on the Project. The first loan will be in
<br />the amount of $9,360,000.00, and the second loan ( "the State /Local Loan ") will
<br />be in the approximate amount of $1,000,000.00; and
<br />Whereas, CHFA is willing to advance to the Developer $1,000,000.00 of the
<br />State /Local Loan during the construction of the Project on the condition that
<br />$1,100,000.00 is deposited with the Depository to secure the repayment of the
<br />State /Local Loan; and
<br />Whereas, because CHFA's advance of $1,000,000.00 of the State /Local Loan
<br />will benefit the Developer, the Project and the City, the City has agreed to
<br />provide the funds for the CHFA- required deposit;
<br />Now, therefore, in order to induce CHFA to advance the $1,000,000.00 to
<br />assist with the financing of the construction costs of the Project, and in
<br />consideration of the mutual covenants set forth herein, and for other valuable
<br />consideration, the receipt and sufficiency of which is hereby acknowledged, the
<br />parties agree as follows:
<br />1. The sum of One million one hundred thousand and no /100th Dollars
<br />($1,100,000.00), in the form of cash, has been deposited with the Depository,
<br />and the Depository acknowledges receipt of the same.
<br />2. Depository shall hold these funds and any disbursement of the funds
<br />shall be made only at the express written direction of CHFA. The Depository
<br />shall act solely at all times on instructions from CHFA with respect to the sum
<br />deposited hereunder. During the term of this Agreement, CHFA will have the
<br />exclusive right to withdraw the funds deposited hereunder, and any withdrawal
<br />of funds or other instructions pertaining to the funds shall be consistent with
<br />paragraph 5 below.
<br />Rev 11/1 1
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