Common use of Conditions Precedent to Subsequent Disbursements Clause in Contracts

Conditions Precedent to Subsequent Disbursements. The disbursement of subsequent Loans shall be subject to the following conditions precedent: (a) No Default or Event of Default shall have occurred and be continuing. (b) No material adverse change shall have occurred in the financial condition of the Borrower or any Guarantor. (c) All representations and warranties contained herein shall be true and correct at the date of such disbursement. (d) No change shall have occurred in any law or regulations thereunder or interpretations thereof which in the opinion of counsel for the Lender would make it illegal for the Lender to make Loans hereunder. (e) If required by the Lender, the Borrower shall have delivered to the Lender a current Borrowing Base Certificate, a listing and aging of Accounts Receivable, a listing of accounts payable of the Borrower, a report setting forth the status of all contracts, all of which shall be of a current date, shall be appropriately completed and duly executed by the chief financial officer of the Borrower, the Treasurer of the Borrower or such other financial officer of the Borrower as is acceptable to the Lender and generally shall be in form and substance satisfactory to the Lender. (f) If previously waived by the Lender as a condition to Closing, financing statements and/or termination statements shall have been filed in each location where the Lender deems such filing necessary to perfect its security interest in the Collateral or terminate a previously perfected security interest in the Collateral.

Conditions Precedent to Subsequent Disbursements. The disbursement and issuance of the initial and subsequent Loans and Letters of Credit shall be subject to the following conditions precedent: (a) No Default or Event of Default shall have occurred and be continuing. (b) No material adverse change event or condition shall have occurred in the financial condition of the Borrower or any Guarantorwhich has a Material Adverse Effect. (c) All representations and warranties of the Borrowers contained herein in the Loan Documents shall be true and correct in all material respects at the date of such disbursement, except for representations and warranties that relate to an earlier date (in which case such representations and warranties shall have been true and accurate on and as of such earlier date). (d) No change shall have occurred in any law or regulations thereunder or interpretations thereof which in the opinion of counsel for the Lender that would make it illegal for the Administrative Agent or any Lender to make Loans Loans, or for the Issuing Bank to issue Letters of Credit, hereunder. (e) If required by To the extent any Lender is a Defaulting Lender or a Potential Defaulting Lender, at the Borrower shall have delivered time of such Loan or issuance of such Letter of Credit, the LC Exposure or the Swingline Exposure to the Issuing Bank or the Swingline Lender a current Borrowing Base Certificate, a listing and aging of Accounts Receivable, a listing of accounts payable that would result therefrom is fully covered or eliminated by cash collateralizing the reimbursement obligations of the Borrower, a report setting forth the status Borrowers with respect to such Letter of all contracts, all of which shall be of a current date, shall be appropriately completed and duly executed by the chief financial officer Credit or to obligations of the Borrowers to pay such Swingline Loan by an amount at least equal to the LC Exposure or the Swingline Exposure, as the case may be, of such Defaulting Lender or Potential Defaulting Lender, or that the Borrowers have made other arrangements reasonably satisfactory to the Administrative Agent, the Issuing Bank and the Swingline Lender in their reasonable discretion to protect them against the risk of non-payment by such Defaulting Lender or Potential Defaulting Lender; provided that no such cash collateralization will constitute a waiver or release of any claim any Borrower, the Treasurer of Administrative Agent, the Borrower Issuing Bank, the Swingline Lender or any other Lender may have against such other financial officer of the Borrower as is acceptable Defaulting Lender or Potential Defaulting Lender, or cause such Defaulting Lender or Potential Defaulting Lender to the Lender and generally shall be in form and substance satisfactory to the a Non-Defaulting Lender. (f) If previously waived by the Lender as a condition to Closing, financing statements and/or termination statements shall have been filed in each location where the Lender deems such filing necessary to perfect its security interest in the Collateral or terminate a previously perfected security interest in the Collateral.

Conditions Precedent to Subsequent Disbursements. The disbursement Prior to ------------------------------------------------ making any disbursements following the Initial Disbursement, all of subsequent Loans shall be subject to the following conditions precedentshall have been satisfied: (a) No Default or Event of Default a. The Initial Disbursement shall have occurred and be continuing.occurred; (b) b. No material adverse change default shall exist under this Agreement or any of the Loan Documents; c. No determination shall have occurred been made by Lender, in the financial condition reasonable exercise of its judgment, with notice thereof to Borrower, that the Construction Budget has fallen out of balance as provided in Section 2.14; d. The title insurer shall have agreed to issue its continuation endorsement (CLTA Form 122) to Lender indicating that since the last preceding disbursement to Borrower or general contractor, there has been no change in the state of title, there are no intervening liens which may take priority over the disbursement to be made, and that there are no survey exceptions not previously approved by Lender; e. Upon completion of each foundation for a Home, the title insurer shall have issued its foundation endorsement (CLTA Form 102.5) assuring Lender that the foundation is constructed wholly within the boundaries of the Borrower or legal parcel for such Home and does not encroach on any Guarantor.easements; (c) All f. The representations and warranties contained herein of Borrower made in Article IV below and in the other Loan Documents shall be true and correct at on and as of the date of disbursement with the same effect as if made on such disbursement.date; (d) No change g. The Improvements owned by Borrower shall not have been materially injured or damaged by fire or other casualty unless Lender shall have occurred in any law or regulations thereunder or interpretations thereof which received insurance proceeds sufficient, in the opinion reasonable exercise of counsel for its judgment, to affect the Lender would make it illegal for satisfactory restoration of such Improvements and to permit the Lender completion thereof prior to make Loans hereunder.the completion date; (e) If required h. No portion of the Property owned by the Lender, the Borrower shall have delivered been condemned or be subject to condemnation proceedings; i. The architect for the Improvements shall have certified in writing to Lender, in form acceptable to Lender, that the Improvements are being constructed in accordance with the Plans and Specifications therefor, using sound new materials, in a good and workmanlike manner, and in a lien-free manner; j. Lender or its architect or contractor shall have inspected the Improvements and shall be satisfied that the work is proceeding in accordance with the Plans and Specifications therefor, using sound, new materials, in a good and workmanlike manner, and in a lien-free manner, to the extent that the same can be determined based on a visual inspection; k. There shall be funds in the Account sufficient to make the requested disbursement; l. Lender a current Borrowing Base Certificateshall have received unconditional lien releases from all contractors, a listing subcontractors, and aging of Accounts Receivable, a listing of accounts payable other labor and material suppliers who have performed work or provided materials for the Improvements for all work performed and materials provided as of the Borrowerdate of the last disbursement request; m. Lender shall have received a detailed list of the line item costs and amounts against which the disbursement is to be applied and the contractors, a report setting forth subcontractors, and other labor and material suppliers that have supplied such services and materials, together with copies of invoices or other documentation that evidence that such costs have been incurred; n. Lender shall have received conditional lien releases (conditioned only on the status receipt of payment) from all contractscontractors, subcontractors, and other labor and material suppliers who have performed work or provided materials that are to be paid for out of the current disbursement request, which conditional lien releases cover all of which shall be work performed and materials provided as of a current date, shall be appropriately completed and duly executed by date ten days prior to the chief financial officer date of the Borrower, the Treasurer of the Borrower or such other financial officer of the Borrower as is acceptable to the Lender and generally shall be in form and substance satisfactory to the Lender. (f) If previously waived by the Lender as a condition to Closing, financing statements and/or termination statements shall have been filed in each location where the Lender deems such filing necessary to perfect its security interest in the Collateral or terminate a previously perfected security interest in the Collateral.disbursement request;

Conditions Precedent to Subsequent Disbursements. The disbursement of subsequent Loans and the issuance of subsequent Letters of Credit shall be subject to the following conditions precedent: (a) No Default or Event of Default shall have occurred and be continuing. (b) No material adverse change shall have occurred in the financial condition of the Borrower or any Guarantor. (c) All representations and warranties contained herein shall be true and correct at the date of such disbursement. (d) No change shall have occurred in any law or regulations thereunder or interpretations thereof which in the opinion of counsel for the Lender would make it illegal for the Lender to make Loans or issue Letters of Credit hereunder. (e) If required by the Lender, the Borrower shall have delivered to the Lender a current Borrowing Base Certificate, a listing and aging of Accounts Receivable, a listing of accounts payable of the Borrower, a report setting forth the status of all contracts, all of which shall be of a current date, shall be appropriately completed and duly executed by the chief financial officer of the Borrower, the Treasurer of the Borrower or such other financial officer of the Borrower as is acceptable to the Lender and generally shall be in form and substance satisfactory to the Lender. (f) If previously waived by the Lender as a condition to Closing, financing statements and/or termination statements shall have been filed in each location where the Lender deems such filing necessary to perfect its security interest in the Collateral or terminate a previously perfected security interest in the Collateral. (g) The Lender shall have received such landlord and mortgagee waivers as it shall request from any landlord or mortgagee which, in the reasonable judgment of the Lender, has an interest in any of the Collateral, and all landlord and mortgagee waivers previously provided to the Lender by any landlord or mortgagee which, in the reasonable judgment of the Lender, has an interest in any of the Collateral shall remain in effect. (h) The Borrower shall have executed all other agreements, instruments and documents and shall have performed all acts which the Lender may require with respect to Accounts Receivable owing by the Government to ensure compliance with the Assignment of Claims Act of 1940, as amended, and all applicable regulations issued pursuant thereto.