Common use of Application and Approval Process Clause in Contracts

Application and Approval Process. Publish a Project Application Form based on PACE-in-a-Box model application form on the Program website; Review submitted Application forms for administrative completeness and notify the applicants of any missing information; Maintain the confidentiality of confidential owner information; Maintain the PACE application process, including: Draft and distribute the PACE application, as well as accept and review the property owner’s completed application; If the project meets eligibility requirements, provide written indication that the project meets PACE standards at this stage (subject to verification of all requirements at closing). Inform the property owner of his or her responsibilities in the process, including hiring a third-party reviewer, obtaining a lender, determining final project scope and completing and submitting a closing verification package. Conduct a Pre-Closing Verification, which will confirm the statutorily required eligibility requirements of the owner including that the property owner: Is the legal property owner of the benefited property; Is current on mortgage and tax payments; Is not insolvent or the subject of bankruptcy proceedings; Holds a title to the property to be subject to a PACE assessment that is not in dispute; and Has consent of any pre-existing mortgagee to the proposed PACE assessment through a written contract. Require independent third-party verification of expected energy or water savings resulting from a project (provided by engineer or consultant retained by applicant), according to the PACE-in-a-Box Technical Standards Manual. This review will include a: Site visit, Report stating the savings (energy, demand, and/or water) and expected project life are reasonable and in compliance with PACE in a Box program guidelines; and Letter from the ITPR certifying that he/she has no financial interest in the project and is an independent reviewer. Require independent third-party verification, according to the PACE-in-a-Box Technical Services Manual, that the period of an assessment does not exceed the expected life of the improvements or thoroughly review waiver application and justification (provided by engineer or consultant retained by applicant); Require lender to confirm in writing its determination, based on underwriting factors established by the lender, that the owner has demonstrated the financial ability to repay the financial obligations to be repaid through assessment. Require the owner to notify the holder of any mortgage lien on the property of the owner's intention to participate in the Program and obtain the lienholder's written consent prior to the imposition of the PACE assessment; Review and finalize the terms of every Owner Contract and Lender Contract prior to execution; The Contract must contain: Amount of the assessment; The legal description of the property; The name of the property owner; and A reference to the statutory assessment lien provided under the PACE Act. Collect and retain owner application fees as compensation for administrative services; Perform closing verification reviews and schedule assessment transaction closings when all requirements are met. Such closing verification must include: The report conducted by a qualified independent third-party reviewer of water or energy baseline conditions and the projected water or energy savings attributable to the project; Such financial information about the owner and the property as the lender chosen by the owner deems necessary to determine that the owner has demonstrated the financial ability to fulfill the financial obligations to be paid through assessments; and All other information required by the Services Provider. Coordinate and take part in assessment transaction closings. Execute contracts under the Program as authorized on behalf of Local Government. Arrange for recordation of a Notice of Contractual Assessment Lien for each approved project in the Official Public Records of the county where the project is located; The Notice must contain: Amount of the assessment; The legal description of the property; The name of the property owner; and A reference to the statutory assessment lien provided under the PACE Act. Require independent post-closing third-party verification (by engineer or consultant retained by Applicant) that each project was properly completed and is operating as intended; and Collect and retain administration fees collected by lenders from owners that receive PACE financing. Management and Reporting Manage communications with lenders regarding assessment servicing, payment, and default; Upon notification by a lender of an owner's default in payment of an assessment and the lender's compliance with the requirements of the Lender Contract on collection after default, notify the Local Government to enforce the assessment lien in accordance with law and the agreements between the parties; Receive and store owner reports on energy and water savings; Maintain the form contracts and make technical and conforming updates as necessary so long as the changes are consistent with the resolution to establish the PACE program and the statute. At the request of property owners, prepare annual notices of assessment to be issued by Local Government to the owners, stating the total amount of the payments due on each assessment in the coming calendar year according to the owner contract and the financing documents; Determine the amounts of the application and administration fees to be paid by owners; Produce annual report on Texas PACE financing usage and the resulting energy and water savings enabled through PACE Assessments. Exhibit “B” Compensation and Fees Service Provider shall determine the amounts of the uniform application and administration fees to be paid by property Owners participating in the Program. Such fees will not exceed the fees below: An application fee of the greater of: $2,000.00; or Amounting to 1% of the total project cost of the first $5 million plus 0.5% of the marginal amount above $5 million and $20 million, and 0.25% of the marginal amount above $20 million to be paid as follows: $500.00 per project at the time of application submittal; the balance of the full remaining application fee paid at closing; and A recurring administration fee of 0.08% of the outstanding principal balance, which amount shall be collected by lender and paid to the Services Provider as provided in the Owner Contract and the financing documents. This fee can also be capitalized and paid at closing. If paid under a negotiated regular schedule to the lender by the property owner, the lender shall pay this fee to Services Provider at the time of each payment by the property owner in accordance with the financing documents. No amounts shall be due by Local Government to Services Provider. Exhibit “C” Insurance Requirements COVERAGE LIMIT OF LIABILITY Employer's Liability $500,000 per occurrence General Liability Bodily Injury and Property Damage, Combined Limits of $500,000 each Occurrence, and $1,000,000 aggregate

Application and Approval Process. Coordinate contract(s) between the County and third party financing (hereinafter referred to as “Lender(s)”) regarding the servicing of the debt through assessments, and the collection of assessments. - Publish a Project Application Form based on PACE-in-a-Box model application form on the PACE Program website; - Review submitted Application forms for administrative completeness and notify notifies the applicants of any missing information; - Maintain the confidentiality of confidential owner information; Maintain - When Applications are complete, make a preliminary determination of eligibility for participation in the PACE application processPace Program and issue preliminary letters to owners and Lenders indicating whether, including: Draft and distribute the PACE application, as well as accept and review the property owner’s completed application; If the project meets eligibility requirements, provide written indication that the project meets PACE standards at this stage (subject to verification of all requirements at closing). Inform Lenders underwriting and closing requirements, the property owner of his or her responsibilities in the process, including hiring a third-party reviewer, obtaining a lender, determining final project scope and completing and submitting a closing verification package. Conduct a Pre-Closing Verification, which will confirm the statutorily required eligibility requirements of the owner including information submitted indicates that the property owner: Is the legal property owner of the benefited propertyproposed project meets PACE Program requirements; Is current on mortgage and tax payments; Is not insolvent or the subject of bankruptcy proceedings; Holds a title to the property to be subject to a PACE assessment that is not in dispute; and Has consent of any pre-existing mortgagee to the proposed PACE assessment through a written contract. - Require independent third-party verification of expected energy or water savings resulting from a project (provided by engineer or consultant retained by applicant), according to the PACE-in-a-Box Technical Standards Manual. This review will include a: Site visit, Report stating the savings (energy, demand, and/or water) and expected project life are reasonable and in compliance with PACE in a Box program guidelines; and Letter from the ITPR certifying that he/she has no financial interest in the project and is an independent reviewer. - Require independent third-party verification, according to the PACE-in-a-Box Technical Services Manual, that the period of an assessment does not exceed the expected life of the improvements or thoroughly review waiver application and justification (provided by engineer or consultant retained by applicant); Require lender to confirm in writing its determination- Confirm that the Lender has determined, based on underwriting factors established by the lenderLender, that the owner has demonstrated the financial ability to repay the financial obligations to be repaid through assessment. assessment - Require the owner to notify the holder of any mortgage lien on the property of the owner's intention to participate in the Program and obtain the lienholder's xxxx xxxxxx'x written consent prior to the imposition of the PACE assessment; - Review and finalize the terms of every Owner Contract and Lender Contract prior to execution; The Contract must contain: Amount of the assessment; The legal description of the property; The name of the property owner; and A reference to the statutory assessment lien provided under the PACE Act. - Collect and retain owner application fees as compensation for administrative services; - Perform closing verification reviews and schedule assessment transaction closings when all requirements are met. Such closing verification must include: The report conducted by a qualified independent third-party reviewer of water or energy baseline conditions and the projected water or energy savings attributable to the project; Such financial information about the owner and the property as the lender chosen by the owner deems necessary to determine that the owner has demonstrated the financial ability to fulfill the financial obligations to be paid through assessments; and All other information required by the Services Provider. - Coordinate and take part in assessment transaction closings. Execute contracts under the Program as authorized on behalf of Local Government. ; - Arrange for recordation recording of a Notice of Contractual Assessment Lien for each approved project in the Official Public Records of the county where the project is located; The Notice must contain: Amount of the assessment; The legal description of the property; The name of the property owner; and A reference to the statutory assessment lien provided under the PACE Act. - Require independent post-closing po s t - c l osi n g third-party verification (by engineer or consultant retained by Applicant) that each project was properly completed and is operating as intended; and - Collect and retain administration fees collected by lenders Lenders from owners that receive PACE financing. Management and Reporting Manage communications with lenders regarding assessment servicing, payment, and default; Upon notification by a lender of an owner's default in payment of an assessment and the lender's compliance with the requirements of the Lender Contract on collection after default, notify the Local Government to enforce the assessment lien in accordance with law and the agreements between the parties; Receive and store owner reports on energy and water savings; Maintain the form contracts and make technical and conforming updates as necessary so long as the changes are consistent with the resolution to establish the PACE program and the statute. At the request of property owners, prepare annual notices of assessment to be issued by Local Government to the owners, stating the total amount of the payments due on each assessment in the coming calendar year according to the owner contract and the financing documents; Determine the amounts of the application and administration fees to be paid by owners; Produce annual report on Texas PACE financing usage and the resulting energy and water savings enabled through PACE Assessments. Exhibit “B” Compensation and Fees Service Provider shall determine the amounts of the uniform application and administration fees to be paid by property Owners participating in the Program. Such fees will not exceed the fees below: An application fee of the greater of: $2,000.00; or Amounting to 1% of the total project cost of the first $5 million plus 0.5% of the marginal amount above $5 million and $20 million, and 0.25% of the marginal amount above $20 million to be paid as follows: $500.00 per project at the time of application submittal; the balance of the full remaining application fee paid at closing; and A recurring administration fee of 0.08% of the outstanding principal balance, which amount shall be collected by lender and paid to the Services Provider as provided in the Owner Contract and the financing documents. This fee can also be capitalized and paid at closing. If paid under a negotiated regular schedule to the lender by the property owner, the lender shall pay this fee to Services Provider at the time of each payment by the property owner in accordance with the financing documents. No amounts shall be due by Local Government to Services Provider. Exhibit “C” Insurance Requirements COVERAGE LIMIT OF LIABILITY Employer's Liability $500,000 per occurrence General Liability Bodily Injury and Property Damage, Combined Limits of $500,000 each Occurrence, and $1,000,000 aggregate.

Application and Approval Process. Publish a Project Application Form based on PACE-in-a-Box model application form on the Program website; Review submitted Application forms for administrative completeness and notify the applicants of any missing information; Maintain the confidentiality of confidential owner information; Maintain the PACE application process, including: • Draft and distribute the PACE application, as well as accept and review the property owner’s completed application; • If the project meets eligibility requirements, provide written indication that the project meets PACE standards at this stage (subject to verification of all requirements at closing). • Inform the property owner of his or her responsibilities in the process, including hiring a third-party reviewer, obtaining a lender, determining final project scope and completing and submitting a closing verification package. • Conduct a Pre-Closing Verification, which will confirm the statutorily required eligibility requirements of the owner including that the property owner: o Is the legal property owner of the benefited property; o Is current on mortgage and tax payments; o Is not insolvent or the subject of bankruptcy proceedings; o Holds a title to the property to be subject to a PACE assessment that is not in dispute; and o Has consent of any pre-existing mortgagee to the proposed PACE assessment through a written contract. Require independent third-party verification of expected energy or water savings resulting from a project (provided by engineer or consultant retained by applicant), according to the PACE-in-a-Box Technical Standards Manual. This review will include a: • Site visit, • Report stating the savings (energy, demand, and/or water) and expected project life are reasonable and in compliance with PACE in a Box program guidelines; and • Letter from the ITPR certifying that he/she has no financial interest in the project and is an independent reviewer. Require independent third-party verification, according to the PACE-in-a-Box Technical Services Manual, that the period of an assessment does not exceed the expected life of the improvements or thoroughly review waiver application and justification (provided by engineer or consultant retained by applicant); Require lender to confirm in writing its determination, based on underwriting factors established by the lender, that the owner has demonstrated the financial ability to repay the financial obligations to be repaid through assessment. Require the owner to notify the holder of any mortgage lien on the property of the owner's intention to participate in the Program and obtain the lienholder's written consent prior to the imposition of the PACE assessment; Review and finalize the terms of every Owner Contract and Lender Contract prior to execution; The Contract must contain: • Amount of the assessment; • The legal description of the property; • The name of the property owner; and • A reference to the statutory assessment lien provided under the PACE Act. Collect and retain owner application fees as compensation for administrative services; Perform closing verification reviews and schedule assessment transaction closings when all requirements are met. Such closing verification must include: • The report conducted by a qualified independent third-party reviewer of water or energy baseline conditions and the projected water or energy savings attributable to the project; • Such financial information about the owner and the property as the lender chosen by the owner deems necessary to determine that the owner has demonstrated the financial ability to fulfill the financial obligations to be paid through assessments; and • All other information required by the Services Provider. Coordinate and take part in assessment transaction closings. Execute contracts under the Program as authorized on behalf of Local Government. Arrange for recordation of a Notice of Contractual Assessment Lien for each approved project in the Official Public Records of the county where the project is located; The Notice must contain: • Amount of the assessment; • The legal description of the property; • The name of the property owner; and • A reference to the statutory assessment lien provided under the PACE Act. Require independent post-closing po st - c lo s ing third-party verification (by engineer or consultant retained by Applicant) that each project was properly completed and is operating as intended; and Collect and retain administration fees collected by lenders from owners that receive PACE financing. Management and Reporting Manage communications with lenders regarding assessment servicing, payment, and default; Upon notification by a lender of an owner's default in payment of an assessment and the lender's compliance with the requirements of the Lender Contract on collection after default, notify the Local Government to enforce the assessment lien in accordance with law and the agreements between the parties; Receive and store owner reports on energy and water savings; Maintain the form contracts and make technical and conforming updates as necessary so long as the changes are consistent with the resolution to establish the PACE program and the statute. At the request of property owners, prepare annual notices of assessment to be issued by Local Government to the owners, stating the total amount of the payments due on each assessment in the coming calendar year according to the owner contract and the financing documents; Determine the amounts of the application and administration fees to be paid by owners; Produce annual report on Texas PACE financing usage and the resulting energy and water savings enabled through PACE Assessments. Exhibit E xhibit “B” Compensation and Fees Service Provider shall determine the amounts of the uniform application and administration fees to be paid by property Owners participating in the Program. Such fees will not exceed the fees below: • An application fee of the greater of: o $2,000.002,00.00; or o Amounting to ▪ 1% of the total project cost of the first $5 million ▪ plus 0.5% of the marginal amount above $5 million and $20 million, and ▪ 0.25% of the marginal amount above $20 million to be paid as follows: ▪ $500.00 per project at the time of application submittal; ▪ the balance of the full remaining application fee paid at closing; and • A recurring administration fee of 0.08% of the outstanding principal balance, which amount shall be collected by lender and paid to the Services Provider as provided in the Owner Contract and the financing documents. This fee can also be capitalized and paid at closing. If paid under a negotiated regular schedule to the lender by the property owner, the lender shall pay this fee to Services Provider at the time of each payment by the property owner in accordance with the financing documents. • No amounts shall be due by Local Government to Services Provider. Exhibit “C” Insurance Requirements COVERAGE LIMIT OF LIABILITY Employer's Liability $500,000 per occurrence General Liability Bodily Injury and Property Damage, Combined Limits of $500,000 each Occurrence, and $1,000,000 aggregate”

Application and Approval Process. Publish a Project Application Form based on PACE-in-a-Box model application form on the Program website; Review submitted Application forms for administrative completeness and notify the applicants of any missing information; Maintain the confidentiality of confidential owner information; Maintain the PACE application process, including: • Draft and distribute the PACE application, as well as accept and review the property owner’s completed application; • If the project meets eligibility requirements, provide written indication that the project meets PACE standards at this stage (subject to verification of all requirements at closing). • Inform the property owner of his or her responsibilities in the process, including hiring a third-party reviewer, obtaining a lender, determining final project scope and completing and submitting a closing verification package. • Conduct a Pre-Closing Verification, which will confirm the statutorily required eligibility requirements of the owner including that the property owner: o Is the legal property owner of the benefited property; o Is current on mortgage and tax payments; o Is not insolvent or the subject of bankruptcy proceedings; o Holds a title to the property to be subject to a PACE assessment that is not in dispute; and o Has consent of any pre-existing mortgagee to the proposed PACE assessment through a written contract. Require independent third-party verification of expected energy or water savings resulting from a project (provided by engineer or consultant retained by applicant), according to the PACE-in-a-Box Technical Standards Manual. This review will include a: • Site visit, • Report stating the savings (energy, demand, and/or water) and expected project life are reasonable and in compliance with PACE in a Box program guidelines; and • Letter from the ITPR certifying that he/she has no financial interest in the project and is an independent reviewer. Require independent third-party verification, according to the PACE-in-a-Box Technical Services Manual, that the period of an assessment does not exceed the expected life of the improvements or thoroughly review waiver application and justification (provided by engineer or consultant retained by applicant); Require lender to confirm in writing its determination, based on underwriting factors established by the lender, that the owner has demonstrated the financial ability to repay the financial obligations to be repaid through assessment. Require the owner to notify the holder of any mortgage lien on the property of the owner's intention to participate in the Program and obtain the lienholder's written consent prior to the imposition of the PACE assessment; Review and finalize the terms of every Owner Contract and Lender Contract prior to execution; The Contract must contain: • Amount of the assessment; • The legal description of the property; • The name of the property owner; and • A reference to the statutory assessment lien provided under the PACE Act. Collect and retain owner application fees as compensation for administrative services; Perform closing verification reviews and schedule assessment transaction closings when all requirements are met. Such closing verification must include: • The report conducted by a qualified independent third-party reviewer of water or energy baseline conditions and the projected water or energy savings attributable to the project; • Such financial information about the owner and the property as the lender chosen by the owner deems necessary to determine that the owner has demonstrated the financial ability to fulfill the financial obligations to be paid through assessments; and • All other information required by the Services Provider. Coordinate and take part in assessment transaction closings. Execute contracts under the Program as authorized on behalf of Local Government. Arrange for recordation of a Notice of Contractual Assessment Lien for each approved project in the Official Public Records of the county where the project is located; The Notice must contain: • Amount of the assessment; • The legal description of the property; • The name of the property owner; and • A reference to the statutory assessment lien provided under the PACE Act. Require independent post-closing po st - c lo s ing third-party verification (by engineer or consultant retained by Applicant) that each project was properly completed and is operating as intended; and Collect and retain administration fees collected by lenders from owners that receive PACE financing. Management and Reporting Manage communications with lenders regarding assessment servicing, payment, and default; Upon notification by a lender of an owner's default in payment of an assessment and the lender's compliance with the requirements of the Lender Contract on collection after default, notify the Local Government to enforce the assessment lien in accordance with law and the agreements between the parties; Receive and store owner reports on energy and water savings; Maintain the form contracts and make technical and conforming updates as necessary so long as the changes are consistent with the resolution to establish the PACE program and the statute. At the request of property owners, prepare annual notices of assessment to be issued by Local Government to the owners, stating the total amount of the payments due on each assessment in the coming calendar year according to the owner contract and the financing documents; Determine the amounts of the application and administration fees to be paid by owners; Produce annual report on Texas PACE financing usage and the resulting energy and water savings enabled through PACE Assessments. Exhibit “B” Compensation and Fees Service Provider shall determine the amounts of the uniform application and administration fees to be paid by property Owners participating in the Program. Such fees will not exceed the fees below: • An application fee of the greater of: o $2,000.00; or o Amounting to ▪ 1% of the total project cost of the first $5 million ▪ plus 0.5% of the marginal amount above $5 million and $20 million, and ▪ 0.25% of the marginal amount above $20 million to be paid as follows: ▪ $500.00 per project at the time of application submittal; ▪ the balance of the full remaining application fee paid at closing; and • A recurring administration fee of 0.08% of the outstanding principal balance, which amount shall be collected by lender and paid to the Services Provider as provided in the Owner Contract and the financing documents. This fee can also be capitalized and paid at closing. If paid under a negotiated regular schedule to the lender by the property owner, the lender shall pay this fee to Services Provider at the time of each payment by the property owner in accordance with the financing documents. • No amounts shall be due by Local Government to Services Provider. Exhibit “C” Insurance Requirements COVERAGE LIMIT OF LIABILITY Employer's Liability $500,000 per occurrence General Liability Bodily Injury and Property Damage, Combined Limits of $500,000 each Occurrence, and $1,000,000 aggregate”