Conversion Fees. Each Borrower shall pay to FINOVA a fee (herein, the "Conversion Fees") in the amount of one percent (1%) of the sum of (i) total actual fundings to or for the benefit of such Borrower up through and including the Conversion Date plus (ii) any remaining undisbursed portion of such Borrower's Allocated Interest Reserve Amount, in consideration for FINOVA's agreement to provide financing following completion of the construction phase, which fees shall be payable by each such Borrower on the Conversion Date applicable to its particular portion of the Loan. The Conversion Fees are compensation to FINOVA in consideration of its agreement to fund the Loans during and after the construction phases applicable thereto, and shall not be applied against the outstanding principal, accrued interest, or any other amounts owing to FINOVA with respect to the Loans.
Appears in 2 contracts
Sources: Master Loan and Security Agreement (Arv Assisted Living Inc), Loan and Security Agreement (Arv Assisted Living Inc)