Common use of Requests for Disbursements Clause in Contracts

Requests for Disbursements. (a) Borrower shall request disbursements of the Loan not more frequently than monthly. Advances shall be made upon requisitions in such form as may be prescribed by Lender from time to time, signed by an Authorized Representative of Borrower, and approved by such persons as Lender may direct. Lender shall fund each approved requisition within ten (10) Business Days following receipt of all supporting instruments and documents which Lender may require. In connection with Advances, Lender may require on-site inspections and a review of construction (i) to verify percentage of completion and the estimated cost to complete the Improvements, and (ii) to certify disbursement requests. Any such inspections shall be for the sole use and benefit of Lender, and neither Borrower nor any third party shall be entitled to rely thereon for any purpose. As provided in Section 8.9, Lender shall be reimbursed for its costs in connection with such requisitions. (b) Each requisition shall thereby constitute, without the necessity of specifically containing a written statement, a representation and warranty by Borrower with respect to the item for which payment is requested that (i) if the item is work or materials, it has been physically incorporated into or stored on the Property, free of all liens and encumbrances (except for those to be discharged in full with the proceeds of the requested advance), (ii) the item is included in the Budget, (iii) the cost of the item is as specified in the requisition and Budget (or if not, that Borrower has paid any excess), (iv) the work, materials or other item substantially conforms to the Plans and Specifications and/or Budget and all applicable statutes, laws, ordinances, administrative rules, regulations and other legal requirements, (v) the item has been approved by all zoning, building and other governmental officers, offices or departments having jurisdiction and whose approval is required, and (vi) the representations and warranties of Borrower contained in this Agreement are true and correct in all respects as if made on the date of the request for disbursement.

Requests for Disbursements. (a) Upon written request from Borrower shall request disbursements (each, a "Request for Disbursement") and satisfaction of the Loan not more frequently requirements set forth in Sections 6 and 7 of this Agreement, ▇▇▇▇▇▇ Mae shall make disbursements to Borrower from the Escrow. Each disbursement (other than monthly. Advances the final disbursement) shall be made upon requisitions in such form as may be prescribed by Lender from time to time, signed by an Authorized Representative of Borrower, and approved by such persons as Lender may direct. Lender shall fund each approved requisition within ten (10) Business Days following receipt of all supporting instruments and documents which Lender may require. In connection with Advances, Lender may require on-site inspections and a review of construction the amount specified in clause (i) or (ii) below, whichever is less: (i) The actual cost of the Repair covered by the disbursement request, or, if such Repair was done under a contract or subcontract pursuant to verify percentage which other work remains to be done, an amount equal to 90 percent of completion the actual cost of such Repair, plus 100 percent of the cost of any materials used, or to be used, in connection with such Repair, if at the time of Request for Disbursement, title to such materials has passed to Borrower and such materials have been installed, or are being properly stored, on the Property; or (ii) The difference between the balance of the Escrow at the time of the disbursement request and the estimated cost to complete of all remaining Repairs at the Improvements, and (ii) to certify disbursement requests. Any time of such inspections shall be Request for the sole use and benefit of Lender, and neither Borrower nor any third party shall be entitled to rely thereon for any purpose. As provided in Section 8.9, Lender shall be reimbursed for its costs in connection with such requisitionsDisbursement. (b) Each requisition Request for Disbursement shall thereby constitute, without the necessity of specifically containing be made on a written statement, a representation form provided or approved by ▇▇▇▇▇▇ ▇▇▇ and warranty by Borrower with respect to the item for which payment is requested that shall specify (i) if the item specific Repair for which reimbursement is work or materials, it has been physically incorporated into or stored on the Property, free of all liens and encumbrances (except for those to be discharged in full with the proceeds of the requested advance)being sought, (ii) the item is included quantity and price of all materials (grouped by type or category) or specific replacement items (e.g., appliances) purchased in the Budget, connection with such Repair; and (iii) the cost of the item is as specified in the requisition and Budget (or if not, that Borrower has paid any excess), (iv) the work, materials all contracted labor or other item substantially conforms services involved in completing such Repair. Borrower shall certify to ▇▇▇▇▇▇ Mae that such Repair has been completed in a good and workmanlike manner in accordance with the Plans as approved by ▇▇▇▇▇▇ ▇▇▇ and Specifications and/or Budget and is in compliance with all applicable statutes, laws, ordinances, administrative rules, and regulations of all governmental authorities, agencies, and other legal requirements, (v) the item has been approved by all zoning, building and other governmental officers, offices or departments instrumentalities having jurisdiction over the Property. Borrower shall provide to ▇▇▇▇▇▇ Mae with each Request for Disbursement copies of invoices and whose approval evidence of payment for all items/materials purchased and all labor/services provided in connection with such Repair together with an acknowledgment of payment and release of lien from all Construction Personnel providing services and/or materials in connection with such Repair. (c) Borrower shall not make a Request for Disbursement more frequently than once in any month unless ▇▇▇▇▇▇ ▇▇▇ determines, in its sole and absolute discretion, that more frequent disbursements of funds are appropriate and can be managed effectively by ▇▇▇▇▇▇ Mae. Borrower shall not be entitled to receive any funds from the Escrow if Borrower is required, and (vi) the representations and warranties of Borrower contained in default under this Agreement are true or the Loan Documents. (d) Borrower shall pay all invoices for items or material supplied or purchased and correct all contracted labor or services performed in connection with the Repairs prior to submitting a Request for Disbursement for such Repair. However, ▇▇▇▇▇▇ ▇▇▇, at its option, may issue joint checks, payable to Borrower and the supplier, materialman, mechanic, subcontractor or other party to whom payment is due in connection with a Repair. In the case of all respects payments made by joint check, a waiver of liens from each party receiving payments, prior to ▇▇▇▇▇▇ Mae's disbursement of any further Escrow funds will be required. (e) ▇▇▇▇▇▇ ▇▇▇ shall keep a record of each action taken by ▇▇▇▇▇▇ Mae with respect to each Request for Disbursement. Borrower agrees that ▇▇▇▇▇▇ ▇▇▇ and/or Servicer, as if made on applicable, may reimburse itself from the date of Escrow for its actual, reasonable administrative and/or inspection costs in an amount not to exceed that provided for in the request for disbursementinsurance policy and actually disbursed by the insurance company.

Requests for Disbursements. Borrower shall, when it believes it is entitled to a disbursement hereunder, furnish Lender with the following: 3.5.1 A request for payment in the form of Exhibit F ("Request for Payment") and such details concerning the Approved Project Budget and the application of the Loan proceeds as Lender shall reasonably require, including but not limited to (a) invoices and evidence satisfactory to Lender of the proper application of past disbursements and a detailed breakdown of the amounts expended to the date of the Request for Payment for the Approved Project Budget, (b) the amounts then due and unpaid in connection with the Approved Project Budget and (c) an itemized estimate of the amount necessary to complete the construction of and open the Project. 3.5.2 (i) lien waivers or releases, or partial lien waivers and releases, as the case may be, from all contractors, subcontractors and materialmen known by Borrower or its Construction Manager or who have filed a pre-lien who are employed or furnishing materials in connection with the construction of any improvements; (ii) title insurance endorsements showing the Security Agreement and Second Deed of Trust to be a lien or charge upon the Mortgaged Property subordinate only to the lien of the Existing Deed of Trust, and having priority over any and all liens which could be filed in connection with the construction of the Project; and written certification by the Construction Manager that the applicable Project improvements have been constructed in accordance with the Approved Project Budget and any plans and specifications relating thereto. Lender shall request disbursements have the right to telephone or otherwise communicate with the Construction Manager and any contractor, subcontractor, materialman or other person to verify the facts disclosed by any Request for Payment, or for any other purpose, provided that Lender shall endeavor to give Borrower at least twenty-four hours advance notice of the proposed telephone conference or other communication and provide a reasonable opportunity for Borrower to be present and/or participate in any such conference or communication, and provided further that Lender's breach or violation of the requirements of the last proviso shall not give rise to any right or remedy or claim of damages to Borrower or any defense, offset or counterclaim with respect to the repayment of the Loan not more frequently than monthly. Advances shall be made upon requisitions in such form as may be prescribed by Lender from time to time, signed by an Authorized Representative of Borroweror any other amount due Lender, and approved Borrower's exclusive remedy for failing to receive such advance notice shall obtain directly from the Construction Manager any information delivered by such persons as Lender may direct. Lender shall fund each approved requisition within ten (10the Construction Manager to Lender. 3.5.3 Provided the requirements set forth in Sections 3.5.1 and 3.5.2(i) Business Days following receipt of all supporting instruments and documents which Lender may require. In connection with Advances, Lender may require on-site inspections and a review of construction (i) to verify percentage of completion and the estimated cost to complete the Improvements, and (ii) have been met by Borrower, Lender will fund a requested disbursement within fifteen (15) days of receipt of Borrower's Request for Payment. Following receipt of Borrower's Request for Payment, if Lender determines additional information or documentation is reasonably required to certify disbursement requests. Any such inspections shall be for confirm that the sole use applicable Project improvements have been constructed in accordance with applicable laws and benefit of Lender, the Approved Project Budget and neither Borrower nor any third party shall be entitled to rely thereon for any purpose. As provided in Section 8.9plans and specifications relating thereto ("Supplemental Information"), Lender shall be reimbursed provide Borrower written notice specifying such Supplemental Information within eight (8) business days of receipt of Borrower's Request for its costs in connection with such requisitions. (b) Each requisition shall thereby constitutePayment. Thereafter, without the necessity of specifically containing a written statement, a representation and warranty by Borrower with respect to the item for which payment is requested that (i) if the item is work or materials, it has been physically incorporated into or stored on the Property, free of all liens and encumbrances (except for those to be discharged in full with the proceeds of Lender will fund the requested advance), disbursement within five (ii5) the item is included in the Budget, (iii) the cost business days of the item is as specified in the requisition and Budget (or if not, that Borrower has paid any excess), (iv) the work, materials or other item substantially conforms to the Plans and Specifications and/or Budget and all applicable statutes, laws, ordinances, administrative rules, regulations and other legal requirements, (v) the item has been approved by all zoning, building and other governmental officers, offices or departments having jurisdiction and whose approval is required, and (vi) the representations and warranties receipt of Borrower contained in this Agreement are true and correct in all respects as if made on the date of the request for disbursementsatisfactory Supplemental Information.