Common use of Release to Borrower Clause in Contracts

Release to Borrower. Subject to Article 3.3, provided that an Event of Default does not then exist, (a) any balance remaining that is attributable to the Additional Deposit Amount, the Cash Out Proceeds Amount, and any portion of the Repair Work Escrow funded by Borrower separate from Loan proceeds, may be released to Borrower when: (i) all Repair Work has been satisfactorily completed, as determined by HUD, (ii) evidence of clear title has been provided to HUD, and (iii) Latent Defects assurances that are compliant with Program Obligations have been provided in the form of a cash escrow, letter of credit, or a surety bond from a surety on the accredited list of the U.S. Treasury, in an amount equal to two and one-half percent (2 ½ %) of the Repair Work Escrow (“Latent Defects Deposit”). Said sums may be used for the correction of Latent Defects in the event Borrower fails to make such corrections; and (b) any balance remaining on account of the Latent Defects Deposit shall be released to Borrower, upon the later of (i) fifteen (15) months from the completion of the Repair Work, or (ii) at such time as the Latent Defects have been corrected to the satisfaction of HUD.