Common use of Applications for Advances Clause in Contracts

Applications for Advances. Grantee may request Advances under this Agreement in accordance with the Funds Budget and the Project Budget. Grantee will not request Advances until Funds are actually needed for payment for reimbursements of eligible costs. Grantee may not increase, decrease, or otherwise reallocate line items of the Funds Budget or Project Budget without the prior written consent of City. (a) Grantee shall submit Applications for Advances not more frequently than twice per month. Applications for Advances should correspond with construction phases outlined in the Construction Contracts. In no event shall City approve Advances which exceed the value of work in place. (b) Upon receipt of an Application for Advance, City will inspect the Improvements or will request an inspection from Contractor, in order to determine that the construction phase related to the Application for Advance is complete. Upon City’s satisfaction that such phase is complete City will release the Advance less retainage. (c) City will hold ten percent retainage from each Advance. The retainage will be held by City until City is satisfied that the Improvements are Complete. Upon City’s inspection and satisfaction that the Improvements are Complete, City shall release the retainage. This retainage requirement supersedes any provision to the contrary in any exhibits attached hereto. (d) An Application for Advance may not exceed the aggregate of (a) the costs of labor, materials, and services incorporated into the Improvements in a manner acceptable to City, plus (b) if approved by City, the purchase price of all uninstalled materials to be utilized in the construction of the Improvements stored on the Property or elsewhere with the written consent of, and in a manner acceptable to, City, less (c) retainage, if any, required by City, less (d) all amounts previously Advanced by City. (e) Each Application for Advance shall be submitted by Grantee to City at least 30 business days prior to the date on which an Advance is desired by Grantee. (f) With each Advance, Grantee must satisfy the following requirements and, if required by City, deliver to City evidence of such satisfaction: i. All conditions described herein have been satisfied; ii. There exists no Event of Default hereunder or under any other Loan Document; iii. The representations and warranties made in this Agreement shall be true and correct on and as of the date of each Advance, with the same effect as if made on that date; iv. Grantee will procure and deliver to City releases or waivers of mechanics’ liens and receipted bills showing payment of all parties who have furnished material or services or performed labor of any kind in connection with the construction of any of the Improvements; and v. On request by City, Grantee will procure at its sole cost and deliver to City an updated City’s Title Policy showing no additional title exception objectionable to City. (g) Submission of the final Advance shall be preceded by final inspection and written acceptance of the work by Grantee and City, correction of defective work, if any, by Grantee, and receipt by City of any affidavits or warranties requested of Grantee, releases of liens, and receipt of affidavits of all bills paid (including an affidavit, which in the judgment of City, meets the requirements of § 53.085 of the Texas Property Code). (h) The final Advance, including all retainage, will not be released until City has received the following: (i) a completion certificate from a representative or agent of City and/or Contractor, or other confirmation that the Improvements are Complete, as determined by City, (ii) evidence that all Governmental Requirements have been satisfied, including, but not limited to, delivery to City of certificates of occupancy permitting the Improvements to be legally occupied, (iii) the reporting requirements specified in Exhibit I, attached hereto and made a part hereof, (iv) evidence that no mechanic’s or materialman’s lien or other encumbrance has been filed and remains in effect against the Property, (v) final lien releases or waivers by Contractor, and all subcontractors, materialmen, and other parties who have supplied labor, materials, or services for the construction of the Improvements, or who otherwise might be entitled to claim a contractual, statutory, or constitutional lien against the Property, and (vi) if available under local rules, the Title Policy shall be endorsed and extended to acknowledge completion of construction of the Improvements without any encroachment and in compliance with all applicable matters of public record and Governmental Requirements, with no additional exception objectionable to City. (i) All conditions precedent to the obligation of City to make any Advance are imposed hereby solely for the benefit of City, and no other party may require satisfaction of any such condition precedent or be entitled to assume that City will refuse to make any Advance in the absence of strict compliance with such conditions precedent. All requirements in this Agreement related to Advances may be waived by City, in whole or in part, at any time. (j) City shall not Advance any Funds until City receives subordination agreements from Contractor and all other persons furnishing labor, materials, or services for the Improvements. Such subordinations shall be of a form and content satisfactory to City in its sole discretion, and will subordinate to the deed of trust any lien, claim, or charge that any such person or entity may have against Grantee, the Improvements, or the Property.

Applications for Advances. Grantee Mortgagor shall make written applications to Mortgagee for advances of proceeds of the Loan. Applications for advances shall be for amounts equal to: (i) the total value of classes of the work acceptably completed; plus (ii) the value of materials and equipment not yet incorporated in the work, but delivered to and suitably stored at the Development; less (iii) five percent (5%) holdback of Construction Contract amounts, or such lesser percent holdback that Mortgagee may request Advances under this Agreement determine to be appropriate in its sole discretion (until work has been inspected and found by Mortgagee to be more than ninety-five percent (95%) completed; thereafter, such retainage or any part thereof may be either advanced at the discretion of Mortgagee or retained until Mortgagee shall determine Mortgagor has complied with all of the terms and conditions of Connecticut General Statutes Sections 8-253(b) and 8-253a)), less (iv) all prior advances. The “values” of both (i) and (ii) above shall be computed in accordance with the Funds Budget and the Project Budget. Grantee will not request Advances until Funds are actually needed for payment for reimbursements of eligible costs. Grantee may not increase, decrease, or otherwise reallocate line items of the Funds Budget or Project Budget without the prior written consent of City. (a) Grantee shall submit Applications for Advances not more frequently than twice per month. Applications for Advances should correspond with construction phases outlined in the Construction Contracts. In no event shall City approve Advances which exceed the value of work in place. (b) Upon receipt of an Application for Advance, City will inspect the Improvements or will request an inspection from Contractor, in order amounts assigned to determine that the construction phase related to the Application for Advance is complete. Upon City’s satisfaction that such phase is complete City will release the Advance less retainage. (c) City will hold ten percent retainage from each Advance. The retainage will be held by City until City is satisfied that the Improvements are Complete. Upon City’s inspection and satisfaction that the Improvements are Complete, City shall release the retainage. This retainage requirement supersedes any provision to the contrary in any exhibits attached hereto. (d) An Application for Advance may not exceed the aggregate of (a) the costs of labor, materials, and services incorporated into the Improvements in a manner acceptable to City, plus (b) if approved by City, the purchase price of all uninstalled materials to be utilized in the construction of the Improvements stored on the Property or elsewhere with the written consent of, and in a manner acceptable to, City, less (c) retainage, if any, required by City, less (d) all amounts previously Advanced by City. (e) Each Application for Advance shall be submitted by Grantee to City at least 30 business days prior to the date on which an Advance is desired by Grantee. (f) With each Advance, Grantee must satisfy the following requirements and, if required by City, deliver to City evidence of such satisfaction: i. All conditions described herein have been satisfied; ii. There exists no Event of Default hereunder or under any other Loan Document; iii. The representations and warranties made in this Agreement shall be true and correct on and as of the date of each Advance, with the same effect as if made on that date; iv. Grantee will procure and deliver to City releases or waivers of mechanics’ liens and receipted bills showing payment of all parties who have furnished material or services or performed labor of any kind in connection with the construction of any of the Improvements; and v. On request by City, Grantee will procure at its sole cost and deliver to City an updated City’s Title Policy showing no additional title exception objectionable to City. (g) Submission of the final Advance shall be preceded by final inspection and written acceptance classes of the work in the “Contractor’s and/or Mortgagor’s Project Cost Summary”, accepted by Grantee and City, correction of defective work, if any, by GranteeMortgagee. Each completed application for advances shall be delivered to Mortgagee at least five (5) business days before the date the advance is desired, and receipt Mortgagor shall be entitled only to such amount as may be accepted by City of any affidavits or warranties requested of GranteeMortgagee. Unless otherwise determined by Mortgagee, releases of liensretainage shall be released only to Mortgagor and as provided under the Act, as amended from time to time, this Agreement, and the Construction Contract. Upon determination by Mortgagee in writing that the Development has been substantially (more than 95%) completed, and upon receipt of affidavits both a certificate of all bills paid (including an affidavitsubstantial completion issued by the supervising architect and cost certification satisfactory to Mortgagee, which in the judgment of City, meets the requirements of § 53.085 of the Texas Property Code). (h) The final Advance, including all retainage, will not retainage may be released until City has received or reduced solely at the following: (i) a completion certificate from a representative or agent discretion of City and/or Contractor, or other confirmation that the Improvements are Complete, as determined by City, (ii) evidence that all Governmental Requirements have been satisfied, including, but not limited to, delivery to City of certificates of occupancy permitting the Improvements to be legally occupied, (iii) the reporting requirements specified Mortgagee in Exhibit I, attached hereto and made a part hereof, (iv) evidence that no mechanic’s or materialman’s lien or other encumbrance has been filed and remains in effect against the Property, (v) final lien releases or waivers by Contractor, and all subcontractors, materialmen, and other parties who have supplied labor, materials, or services for the construction of the Improvements, or who otherwise might be entitled to claim a contractual, statutory, or constitutional lien against the Property, and (vi) if available under local rules, the Title Policy shall be endorsed and extended to acknowledge completion of construction of the Improvements without any encroachment and in compliance accordance with all applicable matters of public record and Governmental Requirements, with no additional exception objectionable to City. (i) All conditions precedent to the obligation of City to make any Advance are imposed hereby solely for the benefit of City, and no other party may require satisfaction of any such condition precedent or be entitled to assume that City will refuse to make any Advance in the absence of strict compliance with such conditions precedent. All requirements in this Agreement related to Advances may be waived by City, in whole or in part, at any time. (j) City shall not Advance any Funds until City receives subordination agreements from Contractor and all other persons furnishing labor, materials, or services for the Improvements. Such subordinations shall be of a form and content satisfactory to City in its sole discretion, and will subordinate to the deed of trust any lien, claim, or charge that any such person or entity may have against Grantee, the Improvements, or the Property.C.G.