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Common use of Adequate security Clause in Contracts

Adequate security. When any event occurs that Lender reasonably and in good faith determines may endanger completion of the Project or the fulfillment of any condition or covenant in this Agreement, Lender may require Borrower to furnish, within twenty (20) days after delivery of a written request, adequate security to eliminate, reduce, or indemnify Lender against such danger. In addition, upon such occurrence, Lender may, but shall not be required to, advance funds or agree to undertake to advance funds to any party to eliminate, reduce, or indemnify Lender against such danger or to complete the Project. All reasonable sums paid by Lender pursuant to such agreements or undertakings shall be for Borrower’s account and shall be without prejudice to Borrower’s rights, if any, to recover such funds from the party to whom paid. All sums paid by Lender in the exercise of its option to complete the Project or protect Lender’s interests shall be payable on demand by Borrower to Lender, together with interest from and including the date the funds are advanced by Lender at the rate applicable to the Loan. In addition, any Disbursement of Construction Funds under this Agreement, including, without limitation, direct disbursements to Contractor or other parties in payment of sums due under Construction Contract, shall be deemed to have been expended by or on behalf of Borrower and, to the extent any such Disbursement of Construction Funds consists of Loan Proceeds, shall be secured by Lender’s Security Instruments, if any, in the Collateral.

Appears in 2 contracts

Samples: Construction Loan Agreement, Construction Loan Agreement (CNL Growth Properties, Inc.)

Adequate security. When any event occurs that Lender reasonably and in good faith determines may endanger completion of the Project or the fulfillment of any condition or covenant in this Agreement, Lender may require Borrower to furnish, within twenty ten (2010) days after delivery of a written request, adequate security to eliminate, reduce, or indemnify Lender against against, such danger. In addition, upon such occurrence, Lender may, but shall not be required to, in its sole discretion may advance funds or agree to undertake to advance funds to any party to eliminate, reduce, or indemnify Lender against against, such danger or to complete the Project. All reasonable sums paid by Lender pursuant to such agreements or undertakings shall be for Borrower’s 's account and shall be without prejudice to Borrower’s 's rights, if any, to recover receive such funds from the party to whom paid. All sums paid expended by Lender in the exercise of its option to complete the Project or protect Lender’s 's interests shall be payable to Lender on demand by Borrower to Lender, together with interest from and including the date of the funds are advanced by Lender Advance at the rate applicable to the Loan. In addition, any Disbursement Advance of Construction Funds funds under this Agreement, including, including without limitation, limitation direct disbursements to the General Contractor or other parties in payment of sums due under the Construction Contract, shall be deemed to have been expended by or on behalf of Borrower and, and to the extent any such Disbursement of Construction Funds consists of Loan Proceeds, shall be have been secured by Lender’s 's Mortgage and Security InstrumentsAgreement, if any, in on the Collateral.

Appears in 2 contracts

Samples: Construction Loan Agreement (Shepherd's Finance, LLC), Construction Loan Agreement (Shepherd's Finance, LLC)

Adequate security. When any event occurs that Lender reasonably and in good faith determines may endanger completion of the Project or the fulfillment of any condition or covenant in this Agreement, Lender may require Borrower to furnish, within twenty ten (2010) days after delivery of a written request, adequate security to eliminate, reduce, or indemnify Lender against against, such danger. In addition, upon such occurrence, Lender may, but shall not be required to, in its sole discretion may advance funds or agree to undertake to advance funds to any party to eliminate, reduce, or indemnify Lender against against, such danger or to complete the Project. All reasonable sums paid by Lender pursuant to such agreements or undertakings shall be for Borrower’s account and shall be without prejudice to Borrower’s rights, if any, to recover receive such funds from the party to whom paid. All sums paid expended by Lender in the exercise of its option to complete the Project or protect Lender’s interests shall be payable to Lender on demand by Borrower to Lender, together with interest from and including the date of the funds are advanced by Lender Advance at the rate applicable to the Loan. In addition, any Disbursement Advance of Construction Funds funds under this Agreement, including, including without limitation, limitation direct disbursements to the General Contractor or other parties in payment of sums due under the Construction Contract, shall be deemed to have been expended by or on behalf of Borrower and, and to the extent any such Disbursement of Construction Funds consists of Loan Proceeds, shall be have been secured by Lender’s Mortgage and Security InstrumentsAgreement, if any, in on the Collateral.

Appears in 1 contract

Samples: Construction Loan Agreement (Shepherd's Finance, LLC)

Adequate security. When any event occurs that Lender reasonably and in good faith determines may endanger completion of the Project or the fulfillment of any condition or covenant in this Agreement, Lender may require Borrower to furnish, within twenty ten (2010) days after delivery of a written request, adequate security to eliminate, reduce, or indemnify Lender against against, such danger. In addition, upon such occurrence, Lender may, but shall not be required to, in its sole discretion may advance funds or agree to undertake to advance funds to any party to eliminate, reduce, or indemnify Lender against against, such danger or to complete the Project. All reasonable sums paid by Lender pursuant to such agreements or undertakings shall be for Borrower’s 's account and shall be without prejudice to Borrower’s 's rights, if any, to recover receive such funds from the party to whom paid. All sums paid expended by Lender in the exercise of its option to complete the Project or protect Lender’s 's interests shall be payable to Lender on demand by Borrower to Lender, together with interest from and including the date of the funds are advanced by Lender Advance at the rate applicable to the Loan. In addition, any Disbursement Advance of Construction Funds funds under this Agreement, including, including without limitation, limitation direct disbursements to the General Contractor or other parties in payment of sums due under the Construction Contract, shall be deemed to have been expended by or on behalf of Borrower and, and to the extent any such Disbursement of Construction Funds consists of Loan Proceeds, shall be have been secured by Lender’s Security Instruments's Deed of Trust, if any, in on the Collateral.

Appears in 1 contract

Samples: Construction Loan Agreement (Applied Optoelectronics, Inc.)

Adequate security. When any event occurs that Lender reasonably and in good faith determines may endanger completion of the Project or the fulfillment of any condition or covenant in this Agreement, Lender may require Borrower to furnish, within twenty ten (2010) days after delivery of a written request, adequate security to eliminate, reduce, or indemnify Lender against against, such danger. In addition, upon such occurrence, Lender may, but shall not be required to, in its sole discretion may advance funds or agree to undertake to advance funds to any party to eliminate, reduce, or indemnify Lender against against, such danger or to complete the Project. All reasonable sums paid by Lender pursuant to such agreements or undertakings shall be for Borrower’s 's account and shall be without prejudice to Borrower’s 's rights, if any, to recover receive such funds from the party to whom paid. All sums paid expended by Lender in the exercise of its option to complete the Project or protect Lender’s 's interests shall be payable to Lender on demand by Borrower to Lender, together with interest from and including the date of the funds are advanced by Lender Advance at the rate applicable to the Loan. In addition, any Disbursement Advance of Construction Funds funds under this Agreement, including, including without limitation, limitation direct disbursements to the General Contractor or other parties in payment of sums due under the Construction Contract, shall be deemed to have been expended by or on behalf of Borrower and, and to the extent any such Disbursement of Construction Funds consists of Loan Proceeds, shall be have been secured by Lender’s Security Instruments's Deeds of Trust, if any, in on the Collateral.

Appears in 1 contract

Samples: Construction Loan Agreement (Husker Ag Processing LLC)