Common use of Advance Procedure Clause in Contracts

Advance Procedure. The proceeds of each Money Advance must be used to purchase Eligible Equipment or to pay off other lenders for amounts owed on Equipment traded in for Eligible Equipment or with respect to the prior purchase of Eligible Equipment. At the time of each Money Advance, Borrower must: (i) submit a completed loan request on a form acceptable to Bank; and (ii) deliver to Bank a true and accurate copy of each invoice or other documents of transfer for Eligible Equipment (identifying said item as Eligible New Equipment or Eligible Used Equipment) being purchased by the use of the proceeds of the Money Advance requested. Money Advances requested by Borrower and approved by Bank will be either: (i) wired directly to the vendor of the Eligible Equipment for the purchase of Eligible Equipment chosen by Borrower; or (ii) wired to Borrower to reimburse Borrower for Eligible Equipment already purchased by Borrower (including, but not limited to, payoffs of previous financing for such Equipment) if Borrower meets all remaining conditions in this Agreement and in the Notes to the making of Money Advances. Within 10 business days of the date of each Money Advance, Borrower must: (i) properly note the lien of the Bank on the application for the Certificate of Title for each such item of Eligible Equipment purchased with the Money Advance; and (ii) provide proof of the notation of Bank’s lien on the Eligible Equipment for which a Money Advance has been made in the form of a photocopy of the application for Certificate of Title, which must be mailed to Bank on the date on which such application for Certificate of Title is submitted to the governmental agency processing such application. Upon reasonable notice to Borrower and during normal business hours, Bank may inspect Borrower’s records pertaining to Certificates of Title and applications for Certificates of Title pertaining to Collateral. Borrower must mail Bank photocopies of the Certificates of Title for Collateral that it receives from governmental agency issuing such Certificates of Title within 2 business days of receipt of same.