Disbursement Requests. (a) Borrower shall request and Lender shall be required to make disbursements of the Loan not more frequently than once each calendar month (except that up to 3 times during the term of the Loan, Borrower may submit twice monthly disbursements of the Loan). Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of any portion of the Work, or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved by Borrower to Lender’s satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer of Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender: (i) An Owner’s Sworn Statement and disbursement request; (ii) A Contractor’s Application for Payment and Sworn Contractor’s Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement described in subparagraph 5.3(b) below; (iii) A certificate of the Contractor certifying (based on its diligent investigation of the Project and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment plus the amount then requested shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications; (iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and (v) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender. (b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, updating the same to the date of such disbursement and increasing the amount of coverage thereunder to the Principal Balance (taking into account the then current disbursement), and insuring the lien of the Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing. (c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the requested expenditure.
Appears in 2 contracts
Sources: Construction Loan Agreement (Campus Crest Communities, Inc.), Construction Loan Agreement (Campus Crest Communities, Inc.)
Disbursement Requests. (a) During each month, Borrower shall, subject to the conditions set forth herein and in the Loan Documents, request disbursements of the Loan to pay the actual costs incurred in connection with the construction and development of the Project. All disbursements shall be made by Agent within ten days of receiving a draw request and Lender all other documentation or information required hereunder, from Borrower.
(b) Agent and the Lenders shall not be required to make disbursements of the more than one Loan not more frequently than once each calendar month (except that up to 3 times during the term of the Loan, Borrower may submit twice monthly disbursements of the Loan)disbursement in any given 30 day period. Lender Agent may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender Agent in any such action. If in the course of any such verification, any amount shown on any the contract or subcontract entered into for the performance of any portion of the WorkWork (including the Construction Contract or any Subcontract), or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved eliminated by Borrower to Lender’s Agent's reasonable satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer an authorized agent of Borrower, Borrower addressed to LenderAgent, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to LenderAgent:
(i) An Owner’s 's Sworn Statement and disbursement request, including an allocation among line items in the Budget, of all hard costs of construction so requested;
(ii) A Contractor’s 's Application for Payment and Sworn Contractor’s Statement from Contractor's Statement, and together with (A) a statement of a duly authorized officer agent of the Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with and (B) waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen each contractor, subcontractor to whom payment is to be made, as are required by the Title Company as a condition with respect to issuing the date-down endorsement described in subparagraph 5.3(b) belowprevious disbursements;
(iii) A certificate Evidence (including invoices and contracts) showing the propriety of each non-construction cost item for which payment is requested and such supporting data as Agent may reasonably require to enable Agent to verify the correctness thereof;
(iv) Certificates of the Contractor certifying (and the Consultant stating that each of them has made diligent investigation and that based on its diligent such investigation of the Project and the all Work then performed) (A) that all construction performed to the date of the request for disbursement has been completed in substantial accordance with the Plans and Specifications; Specifications and certifying (BA) that the percentage of completion of each component of the Work; , (C) its approval of the request for disbursement; (DB) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; , (C) the total cost to complete the Work, (D) and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment payment, plus the amount then requested shall requested, the remaining uncertified and undisbursed funds will be sufficient to pay all known costs required to complete the construction of the Project Work in accordance with the Plans and Specifications;
(ivv) An inspection report Copies of the Consultant all licenses and permits (to be obtained by Lenderincluding building permits) certifying the percentages of necessary for construction and completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specificationsrespect thereto; and
(vvi) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by LenderAgent.
(bc) Notwithstanding anything contained in this Agreement to the contrary, Lender Agent shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, Policy updating the same to the date of such disbursement and increasing the amount of coverage (including mechanic's lien coverage) thereunder to by the Principal Balance (taking into account the then current disbursement)amount so disbursed, and insuring the lien of the Mortgage Deed of Trust to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writingExceptions.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the requested expenditure.
Appears in 2 contracts
Sources: Loan Agreement (Windrose Medical Properties Trust), Loan Agreement (Windrose Medical Properties Trust)
Disbursement Requests. Seller may, from time to time, deliver to Escrowee written instructions requesting a Disbursement in the form attached hereto as Exhibit A (aeach, a “Disbursement Request”). With each Disbursement Request, Seller shall submit: (i) Borrower all invoices, statements and other documentation (collectively, the “Payment Documentation”) evidencing the amount of the Disbursement and the payment of such Disbursement amount, (ii) a written confirmation or certificate from the LEP retained with respect to the Remediation Work performed to date is properly done and compliant with the Transfer Act, as defined in the Amendment (the “Compliance Certificate”), and (iii) all applicable conditional and final lien waivers and releases (collectively, the “Lien Waivers”) executed by the LEP retained with respect to the Remediation Work performed to date in form required by applicable law. The Payment Documentation, the Compliance Certificate and the Lien Waivers submitted with each Disbursement Request shall request collectively be referred to as the “Supporting Documentation”. Concurrently with delivering the Disbursement Request and Lender the Supporting Documentation to Escrowee, Seller shall deliver a copy of the same to the Owner for review and approval. Within three (3) business days after receipt of the Disbursement Request and Supporting Documentation, the Owner shall provide the Seller and Escrowee with written notice (the “Objection Notice”) stating either that the Owner agrees with the amount of the Disbursement requested in the Disbursement Request, and in such event the amount of the Disbursement requested in the Disbursement Request shall be required to make disbursements of immediately released to, or at the Loan not more frequently than once each calendar month (except that up to 3 times during order of, the term of Seller, or, if the Loan, Borrower may submit twice monthly disbursements of the Loan). Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of Owner disputes any portion of the WorkDisbursement requested in the Disbursement Request, or any application for paymentis not otherwise satisfied with the Supporting Documentation, sworn statement or waiver the Objection Notice shall set forth the same in detail, and in such event only the non-disputed amount of lien is subject to a possible discrepancy, such discrepancy the Disbursement shall be resolved by Borrower to Lender’s satisfaction. Each request for disbursement released to, or at the order of, Seller and Escrowee shall retain the disputed amount until it has received notice of resolution of such dispute from Seller and Owner or Escrowee shall be made within ten (10) Business Days entitled, at its own discretion, to deliver such amount to an appropriate court of law pending resolution of the requested date dispute. Absent receipt of disbursement, by a letter an Objection Notice from the chief financial officer of Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender:
Owner within three (i3) An Owner’s Sworn Statement and disbursement request;
(ii) A Contractor’s Application for Payment and Sworn Contractor’s Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement described in subparagraph 5.3(b) below;
(iii) A certificate business days after receipt of the Contractor certifying (based on its diligent investigation of the Project Disbursement Request and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment plus the amount then requested shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications;
(iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by LenderSupporting Documentation, the Consultant or their respective agents, employees and/or designees Owner shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and
(v) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender.
(b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, updating the same to the date of such disbursement and increasing agreed with the amount of coverage thereunder to the Principal Balance (taking into account Disbursement requested in the then current disbursement)Disbursement Request, and insuring in such event the lien of the Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the Disbursement requested expenditurein the Disbursement Request shall be immediately released to, or at the order of, the Seller.
Appears in 1 contract
Disbursement Requests. (a) During each month, Borrower shall, subject to the conditions set forth herein and in the Loan Documents, request disbursements of the Loan to pay the actual costs incurred in connection with the construction and development of the Project. All disbursements shall be made by Lender within ten days of receiving a draw request and all other documentation or information required hereunder, from Borrower.
(b) Lender shall not be required to make disbursements of the more than one Loan not more frequently than once each calendar month (except that up to 3 times during the term of the Loan, Borrower may submit twice monthly disbursements of the Loan)disbursement in any given 30 day period. Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any the contract or subcontract entered into for the performance of any portion of the WorkWork (including the Construction Contract or any Subcontract), or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved eliminated by Borrower to Lender’s 's reasonable satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer an authorized agent of Borrower, Borrower addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender:
(i) An Owner’s 's Sworn Statement and disbursement request, including an allocation among line items in the Budget, of all hard costs of construction so requested;
(ii) A Contractor’s 's Application for Payment and Sworn Contractor’s Statement from Contractor's Statement, and together with (A) a statement of a duly authorized officer agent of the Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with and (B) waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen each contractor, subcontractor to whom payment is to be made, as are required by the Title Company as a condition with respect to issuing the date-down endorsement described in subparagraph 5.3(b) belowprevious disbursements;
(iii) A certificate Evidence (including invoices and contracts) showing the propriety of each non-construction cost item for which payment is requested and such supporting data as Lender may reasonably require to enable Lender to verify the correctness thereof;
(iv) Certificates of the Contractor certifying (and the Consultant stating that each of them has made diligent investigation and that based on its diligent such investigation of the Project and the all Work then performed) (A) that all construction performed to the date of the request for disbursement has been completed in substantial accordance with the Plans and Specifications; Specifications and certifying (BA) that the percentage of completion of each component of the Work; , (C) its approval of the request for disbursement; (DB) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; , (C) the total cost to complete the Work, (D) and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment payment, plus the amount then requested shall requested, the remaining uncertified and undisbursed funds will be sufficient to pay all known costs required to complete the construction of the Project Work in accordance with the Plans and Specifications;
(ivv) An inspection report Copies of the Consultant all licenses and permits (to be obtained by Lenderincluding building permits) certifying the percentages of necessary for construction and completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specificationsrespect thereto; and
(vvi) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender.
(bc) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, Policy updating the same to the date of such disbursement and increasing the amount of coverage (including mechanic's lien coverage) thereunder to by the Principal Balance (taking into account the then current disbursement)amount so disbursed, and insuring the lien of the Mortgage Deed of Trust to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writingExceptions.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the requested expenditure.
Appears in 1 contract
Disbursement Requests. The Predevelopment Portion of Agency Loan and Construction Portion of Agency Loan shall be disbursed on a line-item by line-item basis in accordance with the Project Budget and the Project Financing Disbursement Agreement. In no event shall Agency have any obligation to disburse any amount for any item in excess of the amount allocated to such item in the Project Budget, unless approved, in writing, by the Executive Director; provided, however, that upon completion and payment of all work for a particular line item, Developer may move any amounts remaining in such line to any other line item where payment for work has not been completed, and no Agency consent shall be required therefor. Disbursement shall be made only upon Developer’s written request in the form attached hereto as Attachment No. 5 (a “Disbursement Request”) showing all costs that Developer intends to fund with such disbursement, itemized in such detail as the Executive Director may reasonably require, accompanied in each case by (a) Borrower shall request invoices and Lender shall be lien releases (if such work could give rise to mechanic’s or materialmen’s liens) reasonably satisfactory to the Executive Director, including in any event conditional lien releases executed by each contractor and subcontractor who has received any payment for work performed, and (b) all other documents and information reasonably required by the Executive Director. Agency agrees to make disbursements fund each Disbursement Request within twenty-one (21) days after Agency’s receipt of the Loan not more frequently than once each calendar month (except Disbursement Request in completed form with all required supporting documentation, and determination by Agency that up to 3 times during the term all of the Loan, Borrower may submit twice monthly disbursements of the Loan). Lender may at any time take such action as it deems appropriate conditions to verify that the conditions precedent to each disbursement set forth in this Section 6.2(c) have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of any portion of the Work, or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved waived by Borrower to Lender’s satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer of Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender:
(i) An Owner’s Sworn Statement and disbursement request;
(ii) A Contractor’s Application for Payment and Sworn Contractor’s Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement described in subparagraph 5.3(b) below;
(iii) A certificate of the Contractor certifying (based on its diligent investigation of the Project and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment plus the amount then requested shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications;
(iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and
(v) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by LenderAgency.
(b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, updating the same to the date of such disbursement and increasing the amount of coverage thereunder to the Principal Balance (taking into account the then current disbursement), and insuring the lien of the Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the requested expenditure.
Appears in 1 contract
Disbursement Requests. (a) Borrower shall request and Lender shall be required to make disbursements disbursement of the Construction Loan not more frequently than once each calendar month (except that up to 3 times during the term of the Loan, Borrower may submit twice monthly disbursements of the Loan)month. Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of any portion of the Work, or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved eliminated by Borrower to Lender’s 's satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer of the Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender:
(i) An Owner’s 's Sworn Statement and disbursement request;
(ii) A Contractor’s 's Application for Payment and Sworn Contractor’s 's Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement described in subparagraph 5.3(b) below;
(iii) A certificate of the Contractor Architect certifying (based on its diligent investigation of the Project and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds total construction cost to complete the construction of the Loan (Project and that after giving effect to all amounts previously certified for payment payment, plus the amount then requested requested, the remaining uncertified and undisbursed funds shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications;; and
(iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). (It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s 's own information and shall not be deemed to have been made for or on account of Borrower or any other party, and that Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and.)
(v) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender.
(b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Construction Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, updating the same to the date of such disbursement and increasing the amount of coverage (including mechanic lien coverage) thereunder to the Principal Balance (taking into account the then current disbursement), and insuring the lien of the Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s 's approval with respect to the type and amount of the requested expenditure, which approval shall not be unreasonably withheld.
Appears in 1 contract
Sources: Construction Loan Agreement (Heartland Partners L P)
Disbursement Requests. (a) Borrower shall request and Lender shall be required to make disbursements of the Loan not more frequently than once each calendar month (except that up per Loan. Lender shall not be required to 3 times during make more than five disbursements in connection with the term construction of the Loan, Borrower may submit twice monthly disbursements of the Loan)any one Unit. Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of any portion of the Work, or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved eliminated by Borrower to Lender’s 's satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer of Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement disbursement, and accompanied by the following, all in form and substance satisfactory to Lender:
(i) An Owner’s 's Sworn Statement and disbursement request;
(ii) A Contractor’s 's Application for Payment and Sworn Contractor’s 's Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement endorsements described in subparagraph 5.3(b(b) below;
(iii) A certificate of the Contractor certifying (based on its diligent investigation of the Project and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment plus the amount then requested shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications;
(iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s 's own information and shall not be deemed to have been made for or on account of Borrower or any other party, and that Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and.
(viv) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender.
(b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is unconditionally prepared to issue an endorsement endorsements to the Title PolicyPolicies, updating the same to the date of such disbursement and increasing the amount of coverage (including mechanic lien coverage) thereunder to the Principal Balance aggregate outstanding principal balance of the Loan (taking into account the then current disbursement), and insuring the lien of the Mortgage and the Seller Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing.
(c) No disbursement of any amount shown in the a Budget as a contingency reserve shall by made without Lender’s 's approval with respect to the type and amount of the requested expenditure, which approval shall not be unreasonably withheld.
Appears in 1 contract
Sources: Construction Loan Agreement (Heartland Partners L P)
Disbursement Requests. (a) Borrower shall request and Lender shall be required to make disbursements of the Loan not more frequently than once each calendar month (except that up to 3 times during the term of the Loan, Borrower may submit twice monthly disbursements of the Loan). Lender may at any time take such action as it deems appropriate to verify that the conditions precedent to each disbursement have been satisfied, including, without limitation, verification of any amounts due under the Construction Contract or any Subcontract. Borrower agrees to cooperate with Lender in any such action. If in the course of any such verification, any amount shown on any contract or subcontract entered into for the performance of any portion of the Work, or any application for payment, sworn statement or waiver of lien is subject to a possible discrepancy, such discrepancy shall be resolved by Borrower to Lender’s satisfaction. Each request for disbursement shall be made within ten (10) Business Days of the requested date of disbursement, by a letter from the chief financial officer of Borrower, addressed to Lender, specifying in detail the amount and mode of each disbursement and accompanied by the following, all in form and substance satisfactory to Lender:
(i) An Owner’s Sworn Statement and disbursement request;
(ii) A Contractor’s Application for Payment and Sworn Contractor’s Statement from Contractor, and a statement of a duly authorized officer of Contractor that all items of construction cost have been incorporated into the Project in accordance with the Plans and Specifications, together with waivers of lien with respect to the current disbursement and all previous disbursements from the Contractor and all subcontractors and materialmen to whom payment is to be made, as are required by the Title Company as a condition to issuing the date-down endorsement described in subparagraph 5.3(b) below;
(iii) A certificate of the Contractor certifying (based on its diligent investigation of the Project and the Work then performed) (A) that all construction to the date of the request for disbursement has been completed in accordance with the Plans and Specifications; (B) that the percentage of completion of each component of the Work; (C) its approval of the request for disbursement; (D) that there has been no material deviation from the contract amount under the Construction Contract or any Subcontract or from the projected time of completion of any component of the Work; and (E) that the remaining undisbursed funds of the Loan (after giving effect to all amounts previously certified for payment plus the amount then requested shall be sufficient to pay all costs required to complete the construction of the Project in accordance with the Plans and Specifications;
(iv) An inspection report of the Consultant (to be obtained by Lender) certifying the percentages of completion of the components of the Work and setting forth the amount authorized for disbursement and such other matters as Lender may require (including compliance with the Plans and Specifications). It is understood and agreed by Borrower that any and all inspections of the Work made by Lender, the Consultant or their respective agents, employees and/or designees shall be solely for Lender’s own information and shall not be deemed to have been made for or on account of Borrower or any other party, and Lender shall have no liability or responsibility relating in any way whatsoever to the construction of the Project, including, but not limited to, the work thereon, the material or labor supplied in connection therewith, and any errors, inconsistencies or other defects in the Plans and Specifications; and
(v) Such other documents, assignments, certificates and opinions as are required by the Title Company, or as may be reasonably required by Lender.
(b) Notwithstanding anything contained in this Agreement to the contrary, Lender shall not be required to make any disbursement of the Loan pursuant to this Agreement until the Title Company is prepared to issue an endorsement to the Title Policy, updating the same to the date of such disbursement and increasing the amount of coverage thereunder to the Principal Balance (taking into account the then current disbursement), and insuring the lien of the Mortgage to be superior to all defects in title other than the Permitted Exceptions and other exceptions hereafter approved by Lender in writing.
(c) No disbursement of any amount shown in the Budget as a contingency reserve shall by made without Lender’s approval with respect to the type and amount of the requested expenditure.. 5.4
Appears in 1 contract
Sources: Construction Loan Agreement