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f. Man ament Contract. Prior t the Permanent Mortgage Loan closing, the Borrower /Developer shall deliver to the Agency the signed management plan and Management Contract in the form approved by the Agency, which approval shall not be unreasonably withheld. g. The Borrower /Developer acknowledges that the bonds issued to finance the Permanent Mortgage Loan are insured by Municipal Bond Investors Assurance Association ( "MBIA "). As a condition of the provision of that bond insurance, the Agency is required to conditionally assign the Permanent Mortgage Loan to MBIA and the Agency as co- beneficiaries. Such interest of MBIA and the Agency shall be insured by an ALTA Lender's policy of title insurance as a first mortgage loan. As part of that arrangement, the Borrower /Developer shall be required to agree to the MBIA "Assignment ", "Modification Agreement" and "Developer Agreement" (collectively "MBIA Documents ") or similar documents having the same effect. All non- agency loans shall be subordinate to the MBIA Documents. By accepting this final commitment, the Borrower /Developer acknowledges that it has received and reviewed such MBIA Documents. 6. Assignment Prohibited. This final commitment shall not be assignable by the Borrower /Developer in whole or in part without the prior written approval of the Executive Director of the Agency or his designee. The Agency is aware that the Borrower /Developer intends to transfer the Development to a limited partnership, the general partner of which would be either the Borrower /Developer or a wholly owned or controlled subsidiary of the Borrower /Developer. This statement is only intended to reflect the fact that such a transfer has been discussed and that the Agency is receptive to the idea in concept but shculd not be construed as a preapproval, in any way, of the transfer. 7. Plans and Specifications. Prior to the Agency's issuance of this final commitment the Borrower /Developer has prepared and submitted and the Agency has approved the final plans and specifications for the Development dated February 2 , 1988. The Development shall be constructed in accordance with such final plans and specifications. 8. State /Local Loans. The Agency shall make a State /Local Construction Loan to the Borrower /Developer to provide additional construction financing for the Development. The maximum principal amount of the State /Local Construction Loan shall be $1,000,000.00 and shall accrue interest at the rate of 3% per annum from the date of disbursement until repayment. The State /Local Construction Loan shall be repayable on or before the earlier of (i) the closing of the Permanent Mortgage Loan, or (ii) January 1, 1990. The State /Local Construction Loan shall be evidenced by a promissory note and shall be secured by a cash deposit in the amount of $1,100,000,00 to be made by the City of Pleasanton, as depositor, and held by the Bank of Pleasanton, as depository, pursuant to a written depository agreement for the benefit of the CHFA 60 -4- 4/5/88