Common use of Basis for Construction Loan Advances Clause in Contracts

Basis for Construction Loan Advances. Following receipt and approval of a Draw Request, all supporting documentation and information, and receipt and approval of a written report from the Construction Consultant, the Administrative Agent will determine the amount of the Construction Loan Advance the Lenders will make in accordance with this Agreement, the other Loan Documents and the Budget, and the following standards: (i) Construction Loan Advances for construction work will be made on the basis of ninety percent (90%) of the costs shown on the application for payment from the General Contractor reviewed and approved by the Administrative Agent for the work or material in place on the Improvements that comply with the terms of the Loan Documents, minus all previous Construction Loan Advances and all amounts required to be paid by the Borrower, as described in Columns (B) and (C) of the Budget. When the Work (as defined in the Construction Contract) is fifty percent (50%) complete, there shall be no further retainage for the balance of the Work if the Borrower is satisfied that the General Contractor maintains the construction schedule provided for in the Construction Contract and is performing to the Borrower's satisfaction. If the General Contractor subsequently fails to maintain the construction schedule or fails to perform the Work to the Borrower's satisfaction, the ten percent (10%) retainage may be resumed. There shall be no retainage with respect to the General Contractor's fee or with respect to the payment of costs and expenses included in the Budget as part of the General Conditions. (ii) Construction Loan Advances will not be made for building materials or furnishings that are not yet incorporated into the Improvements ("stored materials") unless the stored materials are in the Borrower's possession or control and satisfactorily stored on the Land and the aggregate amount of Construction Loan Advances for stored materials does not exceed $250,000. (iii) Construction Loan Advances will be made available to the Borrower solely to the extent that, at the time of each requested advance for construction work, the Borrower shall make available to the Administrative Agent in immediately available funds such portion of the requested advance for construction work as shall be necessary to ensure that the aggregate outstanding principal amount of the Construction Loan Advances at no time exceeds the lesser of (A) eighty percent (80%) of the Aggregate Project Cost or (B) seventy-five percent (75%) of the Appraised Value.

Basis for Construction Loan Advances. Following receipt and approval of a Draw Request, all supporting documentation and information, and receipt and approval of a written report from the Construction Consultant, the Administrative Agent will determine the amount of the Construction Loan Advance the Lenders will make in accordance with this Agreement, the other Loan Documents and the Budget, and the following standards: (i) Construction Loan Advances for construction work will be made on the basis of ninety percent (90%) of the costs shown on the application for payment from the General Contractor reviewed and approved by the Administrative Agent for the work or material in place on the Improvements that comply with the terms of the Loan Documents, minus all previous Construction Loan Advances and all amounts required to be paid by the Borrower, as described in Columns (B) and (C) of the Budget. When the Work (as defined in the Construction Contract) is fifty percent (50%) complete, there shall be no further retainage for the balance of the Work if the Borrower is satisfied that the General Contractor maintains the construction schedule provided for in the Construction Contract and is performing to the Borrower's satisfaction. If the General Contractor subsequently fails to maintain the construction schedule or fails to perform the Work to the Borrower's satisfaction, the ten percent (10%) retainage may be resumed. There shall be no retainage with respect to the General Contractor's fee or with respect to the payment of costs and expenses included in the Budget as part of the General Conditions. (ii) Construction Loan Advances will not be made for building materials or furnishings that are not yet incorporated into the Improvements ("stored materials") unless the stored materials are in the Borrower's possession or control and satisfactorily stored on the Land and the aggregate amount of Construction Loan Advances for stored materials does not exceed $250,000. (iii) Construction Loan Advances will be made available to the Borrower solely to the extent that, at the time of each requested advance for construction work, the Borrower shall make available to the Administrative Agent in immediately available funds such portion of the requested advance for construction work as shall be necessary to ensure that the aggregate outstanding principal amount of the Construction Loan Advances at no time exceeds the lesser of (A) eighty percent (80%) of the Aggregate Project Cost or (B) seventy-five percent (75%) of the Appraised Value. (iv) Construction Loan Advances with respect to the construction of the Treatment Plant will be made available to the Borrower solely to the extent that, (i) the aggregate amount of all such Construction Loan Advances shall not exceed $450,000, (ii) Kxxxx X. XxXxxx or Northlake Environmental Engineering Services, Inc. or any of their respective Affiliates and the Borrower shall have entered into the Treatment Plant Construction Contract and the Treatment Plant Services Agreement and (iii) the Borrower shall have pledged to the Administrative Agent for the benefit of the Lenders the Treatment Plant Construction Contract and the Treatment Plant Services Agreement as additional collateral for the Obligations pursuant to the Treatment Plant Collateral Assignments.