Common use of CONDITIONS TO THE FIRST ADVANCE Clause in Contracts

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 Trust for the Property is filed of record, committing to insure the lien of the Deed of Trust is a first and prior lien upon the Property subject only to such other exceptions as Lender may expressly approve in writing; provided, however, at any time, Lender may require that the Borrower, at Borrower’s expense, provide Lender with a Mortgagee Title Policy (“Mortgagee Title Policy”) for the Property if Lender reasonably determines that such Mortgagee Title Policy is necessary to protect ▇▇▇▇▇▇’s interest in the Property; (e) Evidence that all taxes and assessments levied against or affecting the Property that are due and payable have been paid and are current; (f) The insurance policies or certificates of such insurance policies as specified herein; (g) Evidence of the applicable Property’s compliance with the requirements of all applicable “environmental protection” laws, rules, codes and regulations, whether federal, state, or municipal and that the Improvements are in full compliance with all Governmental Requirements relating to the use, occupancy and operation thereof; (h) Evidence reasonably satisfactory to Lender that all necessary action on the part of Borrower has been taken with respect to the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, so that this Agreement and all Loan Documents to be executed and delivered by or on behalf of Borrower will be valid and binding upon Borrower or the person or entity executing and delivering such document in accordance with its terms; (i) Evidence of approval of the Plans for the Property by any necessary Governmental Authority; (j) All building permits and other permits or licenses required by the Governmental Requirements with respect to the construction of the Property, all of which are to be assigned to Lender as additional security for the Loan, in such manner as shall be reasonably acceptable to Lender; (k) Copies of the executed agreement with the Architect, Contractor and any engineer in form reasonably acceptable to Lender, as applicable; (l) Evidence that all applicable zoning ordinances or restrictive covenants affecting the applicable Property permit the use for which the applicable Property is intended and have been or will be complied with; and (m) Such other documents as Lender or its counsel shall require in its commercially reasonable discretion.