CONDITIONS TO THE FIRST ADVANCE Clause Samples
The "Conditions to the First Advance" clause sets out the specific requirements that must be satisfied before a lender is obligated to make the initial disbursement of funds under a loan agreement. Typically, these conditions include the delivery of certain documents, completion of due diligence, and confirmation that no default has occurred. For example, the borrower may need to provide evidence of insurance, corporate authorizations, or legal opinions. This clause ensures that the lender is protected and that all necessary prerequisites are met before any funds are released, thereby reducing the risk of advancing money under unfavorable or uncertain circumstances.
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CONDITIONS TO THE FIRST ADVANCE. The obligations of any Lender to make the initial Revolving Credit Loans and of the Fronting Bank to issue any initial Letters of Credit (and to maintain the existing outstanding Loans and Letters of Credit) shall be subject to the satisfaction of the following conditions precedent on or prior to the Closing Date with, in each instance, the Agent, acting on behalf of the Lenders, having approved in its sole discretion each matter submitted to it in compliance with such conditions:
CONDITIONS TO THE FIRST ADVANCE. As a condition precedent to the first Advance hereunder, Borrower must satisfy the conditions required hereby and set forth elsewhere in this Agreement and deliver to Lender, the documents, certificates, and other items that are set forth below, together with such other documents, instruments, and certificates as Lender, or its legal counsel, may require from time to time:
(a) The Origination Fee;
(b) The Loan Documents duly executed and in recordable form by Borrower and, other parties thereto, if applicable;
(c) A commitment for issuance of a mortgagee's title insurance policy, in form and content satisfactory to Lender, to be obtained at Borrower's expense insuring that the Mortgage constitutes a valid first Lien in the Property, free and clear of all defects and encumbrances except such as Lender shall approve, and naming Lender as insured mortgagee, issued by the Title Company, in the maximum principal amount of the indebtedness owing or to be owing to Lender on account of the Loan, with no exceptions or exclusions other than as may be approved by Lender and containing any endorsements required by Lender. Said policy shall contain a pending disbursements clause in form and substance satisfactory to Lender's legal counsel;
(d) Current survey of the Property prepared in compliance with standards established by Lender and certified to the benefit of Lender and the Title Company, by a duly registered land surveyor or engineer, acceptable to Lender, which survey shall show all courses and distances, dimensions, the area in square feet, street and setback lines, existing improvements and other details reasonably required by Lender or which may be necessary to show that there are no encroachments, easements, rights-of-way, building code or zoning violations or that the Property does not lie within a flood hazard area or 404(b) wetlands or other defects affecting marketability or insurability, which survey shall show no encroachment of the foundation for the Improvements on any boundary line, easement, building set back line, or other restricted area. The survey shall be revised upon completion of construction so as to show the Improvements and all appurtenances, "as built", in accordance with any requirements of Lender;
CONDITIONS TO THE FIRST ADVANCE. The obligation of Bank to make the first Advance is subject to the fulfillment of the following conditions:
CONDITIONS TO THE FIRST ADVANCE. As conditions precedent to the first Advance hereunder, if and to the extent required by Administrative Agent, to Administrative Agent's satisfaction, Borrower must have satisfied the conditions required under this Agreement, including all of those conditions set forth in EXHIBIT C and SECTION 4 below.
CONDITIONS TO THE FIRST ADVANCE. The obligations of any Lender to make the Term Loan (and to maintain the existing outstanding Term Loan) shall be subject to the satisfaction of the following conditions precedent on or prior to the Closing Date with, in each instance, the Agent, acting on behalf of the Lenders, having approved in its sole discretion each matter submitted to it in compliance with such conditions:
CONDITIONS TO THE FIRST ADVANCE. The following requirements must be satisfied as conditions to the first Advance:
CONDITIONS TO THE FIRST ADVANCE. As a condition precedent to the first Advance hereunder: (1) Borrower must satisfy the conditions required hereby and execute and deliver to, procure for and deposit with, and pay to Lender and, if appropriate, record in the proper records with all filing and recording fees paid, such documents, instruments, certificates and other items as Lender may reasonably require; (2) As a condition precedent to the first Advance for labor, materials, or construction services (whether or not it is the first Advance), if requested by ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ and each original contractor, including the Contractor, shall have executed and recorded with the county clerk of the county in which the Property is situated an affidavit of commencement of work, in form and substance approved by ▇▇▇▇▇▇, which contains the information required by Section 53.124(c) of the Texas Property Code, provided further that the date of commencement of work specified in such affidavit shall be subsequent to the date of recordation of the Deed of Trust. Such affidavit shall be executed and recorded after the date the work actually commenced, but not later than the 30th day thereafter. In addition to the requirements and conditions stated elsewhere in this Agreement, the obligation of Lender to fund the Loan, and make the first Advance hereunder is subject to ▇▇▇▇▇▇▇▇’s delivery to Lender of the documents, certificates, and other items that are set forth below, if requested by ▇▇▇▇▇▇, together with such other documents, instruments, and certificates as Lender, or its legal counsel, may reasonably require from time to time:
(a) As a condition precedent to the first construction Advance with respect to the Property hereunder, the Borrower must satisfy the conditions required hereby, including, without limitation, the conditions set forth in Sections 2.3 and 2.4 of this Agreement.
(b) The Loan Documents duly executed and in recordable form by the Borrower, Guarantor, and other parties thereto, if applicable;
(c) Current survey of the Property to be funded with such Advance prepared in compliance with standards established by Lender and certified to the benefit of Lender and the Title Company, by a duly registered land surveyor or engineer, acceptable to ▇▇▇▇▇▇;
(d) The Borrower shall, at its expense, have provided Lender with a Mortgagee Title Policy binder (the “Mortgagee Title Binder”) for the Property, together with a tax deletion endorsement issued by the Title Company, dated the date the Deed of Tru...
CONDITIONS TO THE FIRST ADVANCE. As conditions precedent to the first ------------------------------- advance hereunder, the Borrower must have satisfied the conditions required under this Agreement, including all of those conditions set forth in Exhibit "C" and Section 4 below.
CONDITIONS TO THE FIRST ADVANCE. As conditions precedent to the first Advance, Borrower must satisfy the conditions required hereby and execute and deliver to, procure for and deposit with, and pay to Lender, and if appropriate record in the proper records with all filing and recording fees paid, the documents, certificates, and other items referred to in EXHIBIT B, together with such other documents, certificates and items as Lender may reasonably require from time to time. Except as otherwise specifically provided herein or agreed in writing by Lender, all such documents, certificates and other items shall bear a Current Date.
CONDITIONS TO THE FIRST ADVANCE. As conditions precedent to the first advance hereunder (other than an initial advance which shall not exceed $1,000.00 upon closing of the Loan to “prime” the lien of the Deed of Trust), if and to the extent required by Administrative Agent, to Administrative Agent’s reasonable satisfaction, Borrower must have satisfied the conditions required under this Agreement, including all of those conditions set forth in Exhibit “C” (to the extent not waived upon execution of this Agreement as set forth in Exhibit “C”) and Section 4 below.