Conditions to Subsequent Advances Clause Samples
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Conditions to Subsequent Advances. As conditions precedent to each Advance other than the first Advance, in addition to all other requirements herein, Borrower must satisfy any or all of the following requirements as required by Lender and deliver to Lender an Advance Request acceptable to Lender and evidence of satisfaction of any or all of the following requirements as required by ▇▇▇▇▇▇:
(a) All conditions precedent to the first Advance shall have been satisfied;
(b) There shall then exist no Event of Default and no event which, with the passage of time or giving of notice, would constitute an Event of Default;
(c) Either (i) a foundation survey, if required by Lender, shall have been furnished to Lender within ten (10) days after laying of the foundation of the Improvements, or alternatively, (ii) a form survey, if required by ▇▇▇▇▇▇, shall have been furnished to Lender within five (5) days before laying of the foundation of the Improvements, with either (i) or (ii) as the case may be, showing no encroachment of the Improvements on any boundary line, easement, building setback line, or other restricted area;
(d) The representations and warranties made in this Loan 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;
(e) Borrower will procure and deliver to Lender an Advance Request, together with, if and to the extent required by ▇▇▇▇▇▇, releases or waivers of mechanic's or materialman's liens and receipted bills showing payment of all parties who have furnished materials or services or performed labor of any kind in connection with the construction of any of the Improvements;
(f) If requested by ▇▇▇▇▇▇, copies (certified by the Borrower to be true and correct in all material respects) of a check register detailing all checks issued by Borrower since the immediately preceding Advance from the Loan for the Property, in connection with the Property or construction of the Improvements or any other use of the Loan proceeds, together with any and all other evidence of payments requested by ▇▇▇▇▇▇; and
(g) The Title Insurance shall be endorsed and extended, if available under the local rules, to cover each Advance with no additional title exceptions objectionable to Lender.
Conditions to Subsequent Advances. Prior to each subsequent Advance under the Line of Credit or the issuance of a Letter of Credit:
Conditions to Subsequent Advances. Lenders will have no obligation to fund any Advance after the initial Revolving Loan Advance unless:
Conditions to Subsequent Advances. The obligation of the Lender to make any Subsequent Advance under the Revolving Line of Credit Promissory Note requested to be made by the Borrower on any date is subject to the satisfaction of the following conditions precedent:
(a) Each of the representations and warranties made by the Borrower in or pursuant to the Loan Papers shall be true and correct in all material respects on and as of such date as if made on and as of such date.
(b) No Event of Default shall have occurred and be continuing on such date or after giving effect to the Subsequent Advance requested to be made on such date.
(c) Notwithstanding Section 2.4(b), after giving effect to the Advances under the Revolving Line of Credit Promissory Note requested by Borrower to be made on any date, the aggregate principal amount of the Revolving Line of Credit Promissory Note then outstanding shall not exceed the lesser of (i) $750,000.00 or (ii) the Borrowing Base then in effect.
(d) No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority shall be pending or, to the knowledge of the Borrower, threatened by or against the Borrower or the Lender with respect to this Agreement or any of the other Loan Papers or the transactions contemplated by this Agreement or any of the other Loan Papers.
(e) The Lender shall have received all Borrowing Base Reports required to be delivered by Borrower pursuant to Section 2.3(b)(i). Each borrowing by the Borrower hereunder shall constitute a representation and warranty by the Borrower as of the date thereof that the conditions contained in this Section 3.2 have been satisfied.
Conditions to Subsequent Advances. L▇▇▇▇▇’s obligations hereunder to make any subsequent Advances are conditioned upon the following, each in form and substance satisfactory to Lender:
(i) L▇▇▇▇▇’s timely receipt of an Advance Request, together with all required supporting documentation;
(ii) Written evidence that B▇▇▇▇▇▇▇ has contributed a portion of B▇▇▇▇▇▇▇’s Equity in the amount of $3,320,000.00 toward the construction of the Improvements of the Property;
(iii) Borrower’s deposit with Lender of a portion of the Guaranty Cash Collateral Reserve in the amount of $2,490,000.00;
(iv) The Equity Reserve of $1,480,000.00 shall be on deposit with Lender;
(v) The Debt Service Reserve shall remain on deposit with Lender in the amount of $1,950,000.00;
(vi) If requested by L▇▇▇▇▇, the Title Company shall issue an endorsement to the Title Insurance Policy continuing the effective date of the Title Insurance Policy through the date of the Advance, insuring that there has been no change in the status of the title to the Property and increasing the amount of the Title Insurance Policy by the amount of the Advance being made in connection therewith;
(vii) L▇▇▇▇▇’s receipt of a satisfactory inspection report from Inspector;
(viii) Lender shall be satisfied that there has been no material adverse change in the financial condition, properties or prospects of Borrower;
(ix) Borrower shall provide Lender copies of (a) Builder’s Risk Insurance, pursuant to Section 5.17 below and prior to any commencement of construction or acquisition of any materials to be used in connection with the Project; (b) copies of all remaining contracts with sub-contractors; and (c) all permits, management agreements and bonds further required herein in Section 5.13 and 5.20 herein; and
(x) L▇▇▇▇▇’s receipt of such other documents, instruments, information, agreements and certificates as Lender or the Title Company may reasonably require.
(xi) Borrower shall deliver a building permit in connection with the Improvements to Lender;
(xii) Borrower shall deliver a certified copy of a construction contract with a general Contractor acceptable to Lender and providing for a fixed-price or guaranteed maximum price in an amount not greater than the amount allocated to construction in the Budget and otherwise containing terms and conditions acceptable to Lender, together with Contractor’s completion schedule and schedule of values (the “Construction Contract”);
(xiii) Evidence that the Retainage Escrow Account has been established.
(xiv) A...
Conditions to Subsequent Advances. The obligation of Lender to make any advance subsequent to the initial advance is subject to the following conditions precedent:
Conditions to Subsequent Advances. Before each subsequent extension of credit:
Conditions to Subsequent Advances. The obligation of Lender to make any Advance subsequent to the initial Advance on the Loan is subject to the following conditions precedent:
Conditions to Subsequent Advances. The obligation of the Lender to permit Borrower's previous loans to be included in the Loan Commitment and to make any subsequent advance pursuant to this Agreement shall be subject to compliance by the Borrower with his agreements herein contained, and, shall be subject to Borrower executing and delivering to Lender the Note in the form annexed hereto as Exhibit A.
Conditions to Subsequent Advances. Lender has no obligation to make any Advance subsequent to the Initial Advance unless Lender has received the following:
(i) a down date endorsement to the Title Policy (or if an endorsement is not available, an abstractor’s certificate or other evidence from the Title Company) showing “nothing further” of record affecting the Land from the date of recording of the Deed of Trust, except those matters that Lender specifically approves or are permitted under the Loan Documents;
(ii) waivers signed and acknowledged (notarized) by each Contractor that has done work included within any prior Advance Request that the respective Contractor has been paid in full (except for required retainage) for and is waiving any mechanic’s and materialman’s lien rights with respect to all work done for which reimbursement has previously been requested; and
(iii) an inspection report prepared by an Independent Consultant certifying that: (A) the amount of the Advance included in the Advance Request does not exceed the cost of the work completed, less prior Advances and required retainage; (B) the undisbursed Loan proceeds, together with other funds provided by Borrower, are sufficient to complete all of the Improvements; (C) the Improvements have been constructed substantially in accordance with the Plans; and (D) it has reviewed all city inspection reports.