Advance and Use of Loan Proceeds Construction of Project Sample Clauses

This clause defines the rules and conditions under which loan funds are disbursed and used specifically for the construction of a project. It typically outlines the process for requesting advances, such as submitting draw requests with supporting documentation, and restricts the use of loan proceeds to approved construction costs or related expenses. By setting these parameters, the clause ensures that the lender’s funds are used appropriately and that the project is completed as intended, thereby protecting both parties’ interests and reducing the risk of misuse of funds.