Common use of Advances to Contractor Clause in Contracts

Advances to Contractor. After an Event of Default, Lender may make any or all advances of the Loan directly to Contractor for deposit in an appropriately designated special bank account and the execution of this Agreement by the Borrower shall, and hereby does, constitute an irrevocable direction and authorization to so advance the funds. No further direction or authorization from Borrower shall be necessary to warrant such direct advances to Contractor and all such advances shall satisfy pro tanto the obligations of Lender hereunder and shall be secured by the Security Instrument and the other Loan Documents as fully as if made to Borrower, regardless of the disposition thereof by Contractor.

Advances to Contractor. After an Event of Default, At its option Lender may make any or all advances of the Loan directly to Contractor for deposit in an appropriately designated special bank account and the execution of this Agreement by the Borrower shall, and hereby does, constitute an irrevocable direction and authorization to so advance the funds. No further direction or authorization from Borrower shall be necessary to warrant such direct advances to Contractor and all such advances shall satisfy pro tanto the obligations of Lender hereunder and shall be secured by the Security Instrument Deed of Trust and the other Loan Documents as fully as if made to Borrower, regardless of the disposition thereof by Contractor.

Advances to Contractor. After an Event of DefaultThe above notwithstanding, following a default under Article V hereof, at its option Lender may make any or all advances of the Loan for construction expenses directly to Contractor for deposit in an appropriately designated special bank account account, and the execution of this Agreement by the Borrower shall, shall and hereby does, does constitute an irrevocable direction and authorization to so advance the funds. No further direction or authorization from Borrower shall be necessary to warrant such direct advances to Contractor Contractor, and all such advances shall satisfy pro tanto completely the obligations of Lender hereunder and shall be secured by the Security Instrument and the other Loan Documents Mortgage as fully as if made to Borrower, regardless of the disposition thereof by Contractor.