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Developer. If a claim of a lien or stop notice is given or recorded affecting the Project or the Property or any part thereof, Developer shall within twenty(20) days of such recording or service: (a)pay and discharge (or cause to be paid and discharged)the same; or(b)effect the release thereof by recording and delivering(or causing to be recorded and delivered)to the party entitled thereto a surety bond in sufficient form and amount; or(c)provide other assurance satisfactory to City that the claim of lien or stop notice will be paid or discharged. 5.17 Right of City to Satisfy Liens on the Property. If Developer fails to satisfy or discharge any lien or stop notice on the Property or any part thereof pursuant to and within the time period set forth in Section 5.16 above,the City shall have the right, but not the obligation, to satisfy any such liens or stop notices at Developer's expense and without further notice to Developer and all sums advanced by City for such purpose shall be part of the indebtedness secured by the Deed of Trust. In such event Developer shall be liable for and shall immediately reimburse City for such paid lien or stop notice. Alternatively,the City may require Developer to immediately deposit with City the amount necessary to satisfy such lien or claim pending resolution thereof. The City may use such deposit to satisfy any claim or lien that is adversely determined against Developer. Developer shall file a valid notice of cessation or notice of completion upon cessation of construction work on the Property for a continuous period of thirty (30) days or more, and shall take all other reasonable steps to forestall the assertion of claims or liens against the Property. The City may(but has no obligation to)record any notices of completion or cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest in the Property. 5.18 Performance and Payment Bonds. Prior to commencement of construction work on the Project, Developer shall cause its general contractor to deliver to the City copies of payment bond(s)and performance bond(s) issued by a reputable insurance company licensed to do business in California, each in a penal sum of not less than one hundred percent(100%)of the scheduled cost of construction of the Project. The bonds shall name the City as co-obligee. 5.19 Insurance Requirements. Developer shall maintain and shall cause its contractors to maintain all applicable insurance coverage specified in Article XI. 5.20 Quarterly Performance Reporting. During construction of the Project, Developer shall submit to City a Quarterly Performance Report within 30 days of the end of each quarter. The report shall be in the form of a narrative description of all activities performed in relation to the Project including all development activities. The report shall include a Project time-line, including a schedule for completing milestones and/or tasks, and indicate the status of the Project in relation to this time-line. Developer shall provide the quarterly reports described in this Section until construction of the Project is complete, even if all of the Loan Proceeds have been disbursed. The requirements set forth in this Section are in addition to the requirement for submittal of requisitions pursuant to Section 4.6(o). 5.21 Project Completion Reporting. Upon completion of construction of the Project, Developer shall provide to City a Project Financial Completion audit or similar audit required under tax credit requirements, performed by an independent certified public accountant, that identifies all sources and uses of all Project funds. Developer shall provide to City a copy of any OAK#4822-6539-6013 v3 18