Conditions Precedent to All Disbursements on the CONSTRUCTION LOAN. The obligation of BANKS to make any advances under the CONSTRUCTION LOAN (including the initial disbursement) is subject to the further conditions precedent that BORROWER shall remain in compliance with the conditions precedent contained in Section 4.1 of this AGREEMENT and, unless waived by ADMINISTRATIVE AGENT in writing in the POST CLOSING LETTER, ADMINISTRATIVE AGENT shall have received on or before the submission of a DRAW REQUEST for such advance all of the following in form and substance satisfactory to ADMINISTRATIVE AGENT: 4.2.1 The disbursement requirements of Section 3 of this AGREEMENT have been satisfied and the DISBURSING AGREEMENT, in form and substance acceptable to ADMINISTRATIVE AGENT, has been executed by each party thereto and delivered to ADMINISTRATIVE AGENT. 4.2.2 That the INDEPENDENT INSPECTOR, based upon on-site inspections of the PROJECT, has reported to ADMINISTRATIVE AGENT that the portion of the PROJECT completed as of the date of last inspection by the INDEPENDENT INSPECTOR has been completed in accordance with the PLANS and that the PROJECT can be completed by the CONSTRUCTION LOAN TERMINATION DATE in accordance with the PLANS for the remaining funds available for construction of the PROJECT. 4.2.3 The TITLE COMPANY shall have issued an endorsement to the loan policy of title insurance reflecting the amount of all previous advances on the CONSTRUCTION LOAN, insuring the continued priority of the MORTGAGE over mechanics’ liens and similar liens and showing no exceptions to title other than those previously approved by ADMINISTRATIVE AGENT and the TITLE COMPANY will issue an endorsement insuring the requested advance on the CONSTRUCTION LOAN upon compliance with the terms of the DISBURSING AGREEMENT. 4.2.4 Construction of the PROJECT to the date of the request for the advance has been completed in accordance with all applicable laws, rules, restrictions, regulations and PERMITS, and BORROWER has complied with all applicable PERMITS and such PERMITS remain valid and have not been challenged, terminated, revoked or restricted, or modified, altered, restated or amended without the prior written consent of ADMINISTRATIVE AGENT. 4.2.5 BORROWER has delivered to ADMINISTRATIVE AGENT a fully executed Notice to Proceed as referenced and defined in the CONSTRUCTION CONTRACT. In addition, BORROWER, DESIGN-BUILDER and each SUBCONTRACTOR have each materially complied with all of their respective obligations under the CONSTRUCTION CONTRACT and other general contracts for the construction of the railroad spur and administration building and the CONSTRUCTION CONTRACT and such other general contracts remain in full force and effect. 4.2.6 Evidence satisfactory to ADMINISTRATIVE AGENT that all then due installments of general real estate taxes, special assessments and other levies against the PROPERTY or the PROJECT have been paid in full. 4.2.7 BORROWER has expended the equity referenced in Section 4.1.23 above and any TIF and grant funds on the PROJECT in accordance with the SOURCES AND USES OF FUNDS. 4.2.8 The representations and warranties contained in Section 5 of this AGREEMENT are correct in all material respects on and as of the date of such disbursement as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date and except to the extent of changes permitted under the terms of this AGREEMENT. 4.2.9 No event has occurred and is continuing, or would result from such disbursement, which constitutes an EVENT OF DEFAULT. 4.2.10 No determination shall have been made by ADMINISTRATIVE AGENT or the INDEPENDENT INSPECTOR in the exercise of their reasonable judgment that the undisbursed amount of the CONSTRUCTION LOAN is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the PROJECT; or, if such a determination has been made and notice thereof sent to BORROWER in accordance with this AGREEMENT, BORROWER shall have deposited the necessary funds with ADMINISTRATIVE AGENT in accordance with the Section 3.6 of this AGREEMENT. 4.2.11 If required by ADMINISTRATIVE AGENT, ADMINISTRATIVE AGENT shall be furnished with a statement from BORROWER and the DESIGN-BUILDER or other general contractor, in form and substance satisfactory to ADMINISTRATIVE AGENT, in the exercise of its reasonable discretion, setting forth the names, addresses and amounts due or to become due, as well as the amounts previously paid, to every SUBCONTRACTOR whose charges exceed $20,000.00. 4.2.12 No PERMIT necessary for the construction of the PROJECT shall have been revoked or the issuance thereof subjected to challenge before any court or other governmental authority having or asserting jurisdiction as to the PROJECT, and the construction of the PROJECT is in compliance with applicable PERMITS. 4.2.13 The parties intend that the CONSTRUCTION LOAN is available to fund the lesser of sixty percent (60%) of the TOTAL PROJECT COST as shown in the TOTAL PROJECT COST STATEMENT, including all other approved expenses as set forth in the final version of the SOURCES AND USES OF FUNDS document furnished to BANK by BORROWER prior to CLOSING, or $100,000,000.00. No advances or disbursements under the CONSTRUCTION LOAN shall exceed such levels, unless ADMINISTRATIVE AGENT consents in writing to the same.
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Samples: Construction Loan Agreement (One Earth Energy LLC), Construction Loan Agreement (Rex Stores Corp)
Conditions Precedent to All Disbursements on the CONSTRUCTION LOAN. The obligation of BANKS BANK to make any advances under the CONSTRUCTION LOAN (including the initial disbursement) is subject to the further conditions precedent that BORROWER shall remain in compliance with the conditions precedent contained in Section 4.1 of this AGREEMENT and, unless waived by ADMINISTRATIVE AGENT BANK in writing in the POST CLOSING LETTERpost-closing letter agreement, ADMINISTRATIVE AGENT BANK shall have received on or before the submission of a DRAW REQUEST for such advance all of the following in form and substance satisfactory to ADMINISTRATIVE AGENTBANK:
4.2.1 The disbursement requirements of Section 3 of this AGREEMENT have been satisfied and the DISBURSING AGREEMENT, in form and substance acceptable to ADMINISTRATIVE AGENT, has been executed by each party thereto and delivered to ADMINISTRATIVE AGENTsatisfied.
4.2.2 That the INDEPENDENT INSPECTOR, based upon on-site inspections of the PROJECT, has reported to ADMINISTRATIVE AGENT BANK that the portion of the PROJECT completed as of the date of last inspection by the INDEPENDENT INSPECTOR has been completed in accordance with the PLANS and that the PROJECT can be completed by the CONSTRUCTION LOAN TERMINATION DATE in accordance with the PLANS for the remaining funds available for construction of the PROJECT.
4.2.3 The TITLE COMPANY shall have issued an endorsement to the loan policy of title insurance reflecting the amount of all previous advances on the CONSTRUCTION LOAN, insuring the continued priority of the MORTGAGE over mechanics’ liens and similar liens and showing no exceptions to title other than those previously approved by ADMINISTRATIVE AGENT BANK and the TITLE COMPANY will issue an endorsement insuring the requested advance on the CONSTRUCTION LOAN upon compliance with the terms of the DISBURSING AGREEMENT.
4.2.4 Construction of the PROJECT to the date of the request for the advance has been completed in accordance with all applicable laws, rules, restrictions, regulations and PERMITS, and BORROWER has complied with all applicable PERMITS and such PERMITS remain valid and have not been challenged, terminated, revoked or restricted, or modified, altered, restated or amended without the prior written consent of ADMINISTRATIVE AGENTBANK.
4.2.5 BORROWER has delivered to ADMINISTRATIVE AGENT a fully executed Notice to Proceed as referenced and defined in the CONSTRUCTION CONTRACT. In addition, BORROWER, DESIGN-BUILDER and each SUBCONTRACTOR have each materially complied with all of their respective obligations under the CONSTRUCTION CONTRACT and other general contracts for the construction of the railroad spur and administration building and the CONSTRUCTION CONTRACT and such other general contracts remain in full force and effect.
4.2.6 Evidence satisfactory to ADMINISTRATIVE AGENT BANK that all then due installments of general real estate taxes, special assessments and other levies against the PROPERTY or the PROJECT have been paid in full.
4.2.7 BORROWER has expended the equity referenced in Section 4.1.23 above and any TIF and grant funds on the PROJECT in accordance with the SOURCES AND USES OF FUNDS.
4.2.8 The representations and warranties contained in Section 5 of this AGREEMENT are correct in all material respects on and as of the date of such disbursement as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date and except to the extent of changes permitted under the terms of this AGREEMENT.
4.2.9 No event has occurred and is continuing, or would result from such disbursement, which constitutes an EVENT OF DEFAULT.
4.2.10 No determination shall have been made by ADMINISTRATIVE AGENT or the INDEPENDENT INSPECTOR in the exercise of their reasonable judgment BANK that the undisbursed amount of the CONSTRUCTION LOAN is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the PROJECT; or, if such a determination has been made and notice thereof sent to BORROWER in accordance with this AGREEMENT, BORROWER shall have deposited the necessary funds with ADMINISTRATIVE AGENT BANK in accordance with the Section 3.6 of this AGREEMENT.
4.2.11 If required by ADMINISTRATIVE AGENTBANK, ADMINISTRATIVE AGENT BANK shall be furnished with a statement from BORROWER and the DESIGN-BUILDER or other general contractorBUILDER, in form and substance satisfactory to ADMINISTRATIVE AGENTBANK, in the exercise of its reasonable discretion, setting forth the names, addresses and amounts due or to become due, as well as the amounts previously paid, to every SUBCONTRACTOR whose charges exceed $20,000.00.
4.2.12 No PERMIT necessary for the construction of the PROJECT shall have been revoked or the issuance thereof subjected to challenge before any court or other governmental authority having or asserting jurisdiction as to the PROJECT, and the construction of the PROJECT is in compliance with applicable PERMITS.
4.2.13 The parties intend that the CONSTRUCTION LOAN is available to fund the lesser of sixty fifty-five percent (6055%) of the TOTAL PROJECT COST as shown in the TOTAL PROJECT COST STATEMENT, including all other approved expenses as set forth in the final version of the SOURCES AND USES OF FUNDS document furnished to BANK by BORROWER prior to CLOSING, or $100,000,000.0083,000,000.00. No advances or disbursements under the CONSTRUCTION LOAN shall exceed such levels, unless ADMINISTRATIVE AGENT BANK consents in writing to the same.
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Conditions Precedent to All Disbursements on the CONSTRUCTION LOAN. The obligation of BANKS to make any advances under the CONSTRUCTION LOAN (including the initial disbursement) is subject to the further conditions precedent that BORROWER shall remain in compliance with the conditions precedent contained in Section 4.1 of this AGREEMENT and, unless waived by ADMINISTRATIVE AGENT in writing in the POST CLOSING LETTER, ADMINISTRATIVE AGENT shall have received on or before the submission of a DRAW REQUEST for such advance all of the following in form and substance satisfactory to ADMINISTRATIVE AGENT:
4.2.1 The disbursement requirements of Section 3 of this AGREEMENT have been satisfied and the DISBURSING AGREEMENT, in form and substance acceptable to ADMINISTRATIVE AGENT, has been executed by each party thereto and delivered to ADMINISTRATIVE AGENT.
4.2.2 That the INDEPENDENT INSPECTOR, based upon on-site inspections of the PROJECT, has reported to ADMINISTRATIVE AGENT that the portion of the PROJECT completed as of the date of last inspection by the INDEPENDENT INSPECTOR has been completed in accordance with the PLANS and that the PROJECT can be completed by the CONSTRUCTION LOAN TERMINATION DATE in accordance with the PLANS for the remaining funds available for construction of the PROJECT.
4.2.3 The TITLE COMPANY shall have issued an endorsement to the loan policy of title insurance reflecting the amount of all previous advances on the CONSTRUCTION LOAN, insuring the continued priority of the MORTGAGE over mechanics’ liens and similar liens and showing no exceptions to title other than those previously approved by ADMINISTRATIVE AGENT and the TITLE COMPANY will issue an endorsement insuring the requested advance on the CONSTRUCTION LOAN upon compliance with the terms of the DISBURSING AGREEMENT.
4.2.4 Construction of the PROJECT to the date of the request for the advance has been completed in accordance with all applicable laws, rules, restrictions, regulations and PERMITS, and BORROWER has complied with all applicable PERMITS and such PERMITS remain valid and have not been challenged, terminated, revoked or restricted, or modified, altered, restated or amended without the prior written consent of ADMINISTRATIVE AGENT.
4.2.5 BORROWER has delivered to ADMINISTRATIVE AGENT a fully executed Notice to Proceed as referenced and defined in the CONSTRUCTION CONTRACT. In addition, BORROWER, DESIGN-BUILDER and each SUBCONTRACTOR have each materially complied with all of their respective obligations under the CONSTRUCTION CONTRACT and other general contracts for the construction of the railroad spur and spur, administration building and water mains and natural gas lines, and the CONSTRUCTION CONTRACT and such other general contracts remain in full force and effect.
4.2.6 Evidence satisfactory to ADMINISTRATIVE AGENT that all then due installments of general real estate taxes, special assessments and other levies against the PROPERTY or the PROJECT have been paid in full.
4.2.7 BORROWER has expended the equity referenced in Section 4.1.23 above and any TIF and grant funds on the PROJECT in accordance with the SOURCES AND USES OF FUNDS.
4.2.8 The representations and warranties contained in Section 5 of this AGREEMENT are correct in all material respects on and as of the date of such disbursement as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date and except to the extent of changes permitted under the terms of this AGREEMENT.
4.2.9 No event has occurred and is continuing, or would result from such disbursement, which constitutes an EVENT OF DEFAULT.
4.2.10 No determination shall have been made by ADMINISTRATIVE AGENT or the INDEPENDENT INSPECTOR in the exercise of their reasonable judgment that the undisbursed amount of the CONSTRUCTION LOAN is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the completion of the PROJECT; or, if such a determination has been made and notice thereof sent to BORROWER in accordance with this AGREEMENT, BORROWER shall have deposited the necessary funds with ADMINISTRATIVE AGENT in accordance with the Section 3.6 of this AGREEMENT.
4.2.11 If required by ADMINISTRATIVE AGENT, ADMINISTRATIVE AGENT shall be furnished with a statement from BORROWER and the DESIGN-BUILDER or other general contractor, in form and substance satisfactory to ADMINISTRATIVE AGENT, in the exercise of its reasonable discretion, setting forth the names, addresses and amounts due or to become due, as well as the amounts previously paid, to every SUBCONTRACTOR whose charges exceed $20,000.00.
4.2.12 No PERMIT necessary for the construction of the PROJECT shall have been revoked or the issuance thereof subjected to challenge before any court or other governmental authority having or asserting jurisdiction as to the PROJECT, and the construction of the PROJECT is in compliance with applicable PERMITS.
4.2.13 The parties intend that the CONSTRUCTION LOAN is available to fund the lesser of sixty percent (60%) up to $50,400,000.00 of the TOTAL PROJECT COST as shown in the TOTAL PROJECT COST STATEMENT, including all other approved expenses as set forth in the final version of the SOURCES AND USES OF FUNDS document furnished to BANK by BORROWER prior to CLOSING, or $100,000,000.00. No advances or disbursements under the CONSTRUCTION LOAN shall exceed such levels, unless ADMINISTRATIVE AGENT consents in writing to the same.to
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Samples: Construction Loan Agreement (Highwater Ethanol LLC)
