Common use of Building Loans Clause in Contracts

Building Loans. 8.1 The following provisions of this clause 8 only apply if the Agreement states that the type of loan is a Building Loan. 8.2 The Bank lends the Borrower the loan progressively by: (a) paying any fees and charges and insurance premiums included in the loan; and (b) paying the loan balance as progress payments after the Borrower has exhausted their own funds. 8.3 The Bank only has to lend progress payments if: (a) for each progress payment (including the first and the last): (i) the Bank receives an authority form from the Borrower to pay the builder which is satisfactory to the Bank; (ii) the Bank’s valuer recommends that the Bank makes the progress payment (the Bank’s valuer will normally need to value the building work to do this; (b) before the first progress payment, the Bank receives all of the following and they are satisfactory to the Bank: (i) copy of stamped local council approved plans and specifications; (ii) copy of building contract between the Borrower and the Borrower’s builder; (iii) any other certificates or authorities from local councils or other authorities necessary to conduct the building works; (iv) a report by the Bank’s valuer; and (v) evidence of any insurance the Bank requires, which are satisfactory to the Bank; (c) before the last progress payment, the Bank has received all of the following: (i) confirmation that the building works are finished (including a signed certificate from the Borrower of satisfactory completion of the building works); (ii) evidence of any insurance the Bank requires; and (iii) any other certificates or authorities from local councils or other authorities in relation to the completion of the building works, which are satisfactory to the Bank. 8.4 Within 12 months (or such longer time as the Bank agrees) of the date the Borrower signs the Agreement the Borrower must complete the building works specified in the plans and specifications that the Borrower gives the Bank before the first progress payment.

Building Loans. 8.1 The following provisions of this clause 8 6 only apply if the Agreement states that the type of loan is a Building Loan. 8.2 The Bank lends the Borrower the loan progressively by: (a) paying any fees and charges and insurance premiums included in the loan; and (b) paying the loan balance as progress payments after the Borrower has exhausted their own funds. 8.3 The Bank only has to lend progress payments if: (a) for each progress payment (including the first and the last):) (i) the The Bank receives an authority form from the Borrower to pay the builder which is satisfactory to the Bank; (ii) the The Bank’s valuer recommends that the Bank makes the progress payment (the Bank’s valuer will normally need to value the building work to do this; (b) before the first progress payment, the Bank receives all of the following and they are satisfactory to the Bank: (i) copy of stamped local council approved plans and specifications;; and (ii) copy of building contract between the Borrower and the Borrower’s builder; (iii) any other certificates or authorities from local councils or other authorities necessary to conduct the building works; (iv) a report by the Bank’s valuer; and; (v) evidence of any insurance the Bank requires, which are satisfactory to the Bank; (c) before the last progress payment, the Bank has received all of the following: (i) confirmation that the building works are is finished (including a signed certificate from the Borrower of satisfactory completion of the building works); (ii) evidence of any insurance the Bank requires; and; (iii) any other certificates or authorities from local councils or other authorities in relation to the completion of the building works, which are satisfactory to the Bank. 8.4 Within 12 months (or such longer time as the Bank agrees) of the date the Borrower signs the Agreement the Borrower must complete the building works specified in the plans and specifications that the Borrower gives the Bank before the first progress payment.