Common use of Advances for Stored Materials Clause in Contracts

Advances for Stored Materials. Notwithstanding anything to the contrary contained in this Agreement and subject to the terms of the Loan Agreement, the Bank may consent to disbursements of the Bond proceeds to pay for Direct Construction Costs actually incurred by the Borrower for stored materials which are required in connection with the construction of the Improvements, provided that (i) such materials are in accordance with the Plans and Specifications approved by the Bank and the Construction Consultant, (ii) such materials are securely stored, properly inventoried, and clearly stenciled or otherwise marked to indicate that they are the property of the Borrower, (iii) such materials if they are stored off-site, are stored in a bonded warehouse or with a contractor, materialman or fabricator who bears the risk of loss until delivery and installation of such materials in the construction of the Improvements as part of the work in place, and who has supplied a bond securing such contractor's, materialman's or fabricator's obligation to so deliver and install such materials, which bond shall be issued by a company, shall be in an amount and shall be in form and substance satisfactory to the Bank and shall name the Bank as a dual obligee, (iv) the bills of sale and contracts under which such materials are being provided shall be in form and substance satisfactory to the Bank and the Construction Consultant, (v) such materials are insured against casualty, loss and theft in a manner satisfactory to the Bank, (vi) the Borrower owns such materials free and clear of all liens and encumbrances of any nature whatsoever and establishes such ownership by evidence satisfactory to the Bank, (vii) the Borrower executes and delivers to the Bank such additional security documents as the Bank shall deem necessary to create and perfect a first lien in such materials as additional security for the payment of the Debt, (viii) the aggregate amount of such disbursements for such materials shall in no event at any time exceed the actual Direct Construction Costs incurred by the Borrower for such materials as verified by the Construction Consultant pursuant to the provisions of this Agreement, (ix) the materials which are stored off-site shall be limited to the materials listed on Exhibit E hereto. The Bank shall in no event or under any circumstance have any obligation to authorize the Trustee to make any advance of the Bond proceeds for materials which are stored off-site unless the Bank shall agree to the contrary in its sole and absolute discretion.

Advances for Stored Materials. Notwithstanding anything to the contrary contained in this Agreement and subject to the terms of the Loan Agreement, the Bank Lenders may consent to disbursements of the Bond proceeds make advances under a Construction Note to pay for Direct Construction Costs actually incurred by the Borrower for stored materials which are required in connection with the construction of the ImprovementsProject, provided that (i) such materials are in accordance with the Plans and Specifications approved by the Bank and Agent for the Construction ConsultantProject, (ii) such materials are securely stored, stored and properly inventoried, and clearly stenciled or otherwise marked to indicate that they are the property of the Borrower, (iii) such materials materials, if they are stored off-site, are stored in a bonded warehouse or with a contractor, materialman or fabricator who bears the risk of loss until delivery and installation of such materials in the construction of the Improvements Project as part of the work in place, and who has supplied a bond securing such contractor's’s, materialman's ’s or fabricator's ’s obligation to so deliver and install install, such materials, which bond shall be issued by a company, shall be in an amount and shall be in form and substance satisfactory to the Bank Agent and shall name the Bank Agent as a dual obligee, (iv) the bills of sale and contracts under which such materials are being provided shall be in form and substance satisfactory to the Bank and the Construction ConsultantAgent, (v) such materials are insured against casualty, loss and theft in a manner satisfactory to the BankAgent, (vi) the applicable Borrower owns such materials free and clear of all liens and encumbrances of any nature whatsoever and establishes such ownership by evidence satisfactory to the BankAgent, (vii) the applicable Borrower executes and delivers to the Bank Agent such additional security documents as the Bank shall deem Agent deems necessary to create and perfect a first lien in such materials as additional security for the payment of the DebtConstruction Advance, (viii) the aggregate amount of such disbursements for such materials shall in no event at any time exceed the actual Direct Construction Costs incurred by the Borrower for such materials as is verified by the Construction Consultant Agent pursuant to the provisions of this Agreement, and (ix) the aggregate amount of such disbursements for such materials which are stored off-site shall be limited to the materials listed on Exhibit E hereto. The Bank shall in no event or under any circumstance have any obligation to authorize the Trustee to make any advance of the Bond proceeds for materials which are stored off-site unless the Bank shall agree to the contrary in its sole and absolute discretionexceed Fifty Thousand Dollars ($50,000.00).

Advances for Stored Materials. Notwithstanding anything to the contrary contained in this Agreement and subject to the terms of the Loan Agreement, the Bank Lender may consent to disbursements of the Bond proceeds make advances under a Construction Note to pay for Direct Construction Costs actually incurred by the Borrower for stored Stored materials which are required in connection with the construction of the ImprovementsProject, provided that (i) such materials are in accordance with the Plans and Specifications approved by Lender for the Bank and the Construction ConsultantProject, (ii) such materials are securely stored, stored and properly inventoried, and clearly stenciled or otherwise marked to indicate that they are the property of the Borrower, (iii) such materials materials, if they are stored off-off- site, are stored in a bonded warehouse or with a contractor, materialman or fabricator who bears the risk of loss until delivery and installation of such materials in the construction of the Improvements Project as part of the work in place, and who has supplied a bond securing such contractor's, materialman's or fabricator's obligation to so deliver and install install, such materials, which bond shall be issued by a company, shall be in an amount and shall be in form and substance satisfactory to the Bank Lender and shall name the Bank Lender as a dual obligee, (iv) the bills of sale and contracts under which such materials are being provided shall be in form and substance satisfactory to the Bank and the Construction ConsultantLender, (v) such materials are insured against casualty, loss and theft in a manner satisfactory to the BankLender, (vi) the Borrower Company owns such materials free and clear of all liens and encumbrances of any nature whatsoever and establishes such ownership by evidence satisfactory to the BankLender, (vii) the Borrower Company executes and delivers to the Bank Lender such additional security documents as the Bank Lender shall deem necessary to create and perfect a first lien in such materials as additional security for the payment of the DebtConstruction Advance, (viii) the aggregate amount of such disbursements for such materials shall in no event at any time exceed the actual Direct Construction Costs incurred by the Borrower for such materials as is verified by the Construction Consultant Lender pursuant to the provisions of this Agreement, and (ix) the aggregate amount of such disbursements for such materials which are stored off-site shall be limited to the materials listed on Exhibit E hereto. The Bank shall in no event or under any circumstance have any obligation to authorize the Trustee to make any advance of the Bond proceeds for materials which are stored off-site unless the Bank shall agree to the contrary in its sole and absolute discretionexceed Fifty Thousand Dollars ($50,000.00).

Advances for Stored Materials. Notwithstanding anything Lender shall make disbursements for Stored Materials to the contrary contained in this Agreement and subject to the terms of the Loan Agreement, the Bank may consent to disbursements of the Bond proceeds to pay for Direct Construction Costs actually incurred by the Borrower for stored materials which are required be utilized in connection with the construction Project, as applicable, in amounts such that the sum of all Additional Advances and Mezzanine Loan Additional Advances on account of all such Stored Materials not yet installed or incorporated into the ImprovementsProject shall not be in excess of $1,500,000 (“Stored Materials Cap”) in the aggregate at any one time, provided it being agreed that once Borrower provides satisfactory evidence to Lender and Construction Consultant that such applicable Stored Materials have been installed or incorporated into the Project, such Stored Materials so installed or incorporated into the Project shall no longer count against the Stored Materials Cap. The aggregate amount of Additional Advances for Stored Materials shall in no event at any time exceed the actual Hard Costs incurred by Borrower for such materials as verified by Construction Consultant pursuant to the provisions of this Agreement. In addition to the foregoing limitations, Additional Advances on account of Stored Materials shall be subject to the other provisions of this Agreement and, prior to any Additional Advance for Stored Materials being made, Lender shall have received the following, in form and substance reasonably satisfactory to Lender: (a) evidence that the Stored Materials are appropriate for purchase during the then current stage of construction; (b) (i) as to any Stored Materials, evidence that such materials Stored Materials are or will be securely stored (A) on site at the Property or (B) in accordance with the Plans and Specifications approved by the Bank and the Construction Consultant, (ii) such materials are securely stored, a bonded warehouse off-site properly inventoried, inventoried and clearly stenciled or otherwise marked to indicate that they are (I) the property of Borrower and (II) the Borrower, subject of a security interest by Lender and (iiiii) such materials if they are with respect to Stored Materials stored off-sitesite in accordance with the foregoing, an agreement of the owner of such warehouse to permit Lender and/or Construction Consultant access to the same; (c) evidence that the Stored Materials have been paid for and are stored owned by (or upon payment of the amounts to be disbursed in the applicable Draw Request shall be paid for and owned by) Borrower free of all liens or claims of the vendor or any third party; (d) a perfected, first-priority security interest in such Stored Materials is held by Lender; (e) as to any Off-Site Materials, evidence reasonably satisfactory to Lender that such Off-Site Materials are segregated and identified as Borrower’s property; (f) as to any Unincorporated Materials, Construction Consultant shall have determined, in a bonded warehouse or with a contractor, materialman or fabricator who bears the risk of loss until delivery and installation of such materials in the construction of the Improvements as part of the work in place, and who has supplied a bond securing such contractor's, materialman's or fabricator's obligation to so deliver and install such materials, which bond shall be issued by a company, shall be in an amount and shall be in form and substance manner reasonably satisfactory to the Bank and shall name the Bank as a dual obligee, (iv) the bills of sale and contracts under which such materials are being provided shall be in form and substance satisfactory to the Bank and the Construction Consultant, that such Unincorporated Materials are not in excess of such building equipment and materials as would be kept at the Property in accordance with good construction practice for current installation or incorporation; (vg) such materials evidence reasonably satisfactory to Lender that the Off-Site Materials or Unincorporated Materials, as the case may be, are insured against casualty, loss and theft in a manner for an amount equal to their replacement costs and Lender is named as an additional insured and loss payee with respect thereto; (h) as to any Off-Site Materials, proof of payment reasonably satisfactory to Lender from the Bank, (vi) the Borrower owns such materials free and clear of all liens and encumbrances of any nature whatsoever and establishes such ownership by evidence satisfactory to the Bank, (vii) the Borrower executes and delivers to the Bank such additional security documents as the Bank shall deem necessary to create and perfect a first lien in such materials as additional security for the payment of the Debt, (viii) the aggregate amount supplier or fabricator of such disbursements Off-Site Materials, the cost of which is, in whole or in part, payment for such materials shall in no event at all amounts covered by any time exceed the actual Direct Construction Costs incurred by the Borrower for such materials as verified by the Construction Consultant pursuant to the provisions of this Agreement, (ix) the materials which are stored off-site shall be limited to the materials listed on Exhibit E hereto. The Bank shall in no event or under any circumstance have any obligation to authorize the Trustee to make any advance of the Bond proceeds for materials which are stored off-site unless the Bank shall agree to the contrary in its sole and absolute discretion.prior Draw Request; and