Common use of Conditions to be Met for All Draws Clause in Contracts

Conditions to be Met for All Draws. The following are conditions for all draws and must be satisfied in the sole and reasonable discretion of LHC (it being understood and agreed that subject to the provisions contained in Section 4 of this Agreement, LHC may withhold from disbursement any amounts required to fund any reserve required by the terms of the MRLF Legal Documents): (a) Borrower shall supply LHC with a Draw Request in the form provided by LHC requesting disbursement of Loan proceeds for reimbursement of Eligible Expenses. Each Draw Request shall set forth the amount requested (which in no event shall exceed LHC’s pari passu share) and shall be accompanied by partial releases of liens from the general contractor and all major subcontractors to the effect that such amount has been paid for labor and materials supplied to the Project for the immediately preceding draw period and that general contractor and the major subcontractors claim no lien on the Project, and such other evidence as may be required by this Agreement or by LHC. By executing and delivering a Draw Request to LHC, Borrower agrees and acknowledges that such execution and delivery shall constitute a reaffirmation that the warranties and representations in the MRLF Legal Documents are correct and true in all material respects, that all the covenants, terms, and conditions of this Agreement are being and have been complied with, and that no Event of Default has occurred and is continuing as of the date of the Draw Request. LHC shall have received for its approval the Draw Request for such disbursement, and any other certifications provided for herein or as requested by LHC in its reasonable discretion. For all draw requests submitted for payment of any contractor or supplier with an Identity of Interest relationship with the Borrower, the Borrower’s Architect shall submit a certification of cost reasonableness, establishing that such costs are reasonable. (b) All conditions precedent to the funding of any construction loan shall have been satisfied to the construction lender's satisfaction and there shall be no defaults or events with which the passage of time could serve as the basis for a default under the Construction Loan. (c) There shall be at all times undisbursed loan funds, which, when combined with any committed sources, are sufficient to complete the construction of the Project. Each Draw Request from Borrower shall be deemed to be a certification by Borrower to LHC that, taking into account any retainage, there will be sufficient funds to complete the Project. (d) LHC shall have received from the Inspector or from Borrower a copy of Inspector’s report prior to the date of such Draw Request and such report shall be satisfactory to LHC in its sole discretion. (e) LHC shall have received an endorsement to the title insurance policy using standard construction loan disbursement endorsements updating the status of title to the date of the current Draw Request and increasing the insurance coverage to an amount equal to the sum of all prior Draw Requests and the current Draw Request, without additional exceptions or objections, except those specifically approved in writing by LHC. (f) LHC shall have received evidence that all certificates of insurance as to Builder's Risk and Hazard Insurance remain in effect. (g) The warranties and representations contained in the MRLF Legal Documents are correct and true, in all material respects, all the covenants, terms and conditions of the MRLF Legal Documents remain satisfied, and no uncured Event of Default, default, or circumstances or events which upon the lapse of time, the giving of notice, or both, could become an Event of Default, have occurred as of the date of the Draw Request under the MRLF Legal Documents. (h) LHC shall have received a certificate of Borrower included with each Draw Request stating that Borrower has satisfied and is in compliance with all of the terms, covenants and conditions of the Application, the MRLF Program, and all laws, rules, regulations, ordinances and codes applicable to the Project, including without limitation CDBG regulations, to the extent not waived in writing. Such certificate shall state that all of Borrower’s representations, warranties and covenants contained in the Application and the MRLF Legal Documents are true and correct in all material respects as of the Disbursement Date, and Borrower has performed all of its obligations under the MRLF Legal Documents, and no Event of Default, or circumstance or event which with notice or the passage of time, or both would constitute an Event of Default under the MRLF Legal Documents shall exist as of the Disbursement Date. (i) If requested by LHC, Borrower shall furnish copies, certified by Borrower to be true and correct, of all subcontracts and purchase orders for the provision of labor and materials for the construction of the Improvements and statements from each subcontractor and supplier: stating the amount of its contract and the amount paid to date; and acknowledging full payment (less retainage) of all sums due and payable for all work done and materials supplied. (j) If requested by LHC, Borrower shall furnish to LHC evidence reasonably satisfactory to LHC that Borrower and general contractor have obtained or can obtain all necessary materials as and when required for the completion of the Project in accordance with the Plans and Specifications.

Appears in 1 contract

Samples: Loan Agreement

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Conditions to be Met for All Draws. The following are conditions for all draws and must be satisfied in the sole and reasonable absolute discretion of LHC (it being understood and agreed that subject to the provisions contained in Section 4 of this AgreementSection, LHC may withhold from disbursement any amounts required to fund any reserve required by the terms of the MRLF Legal Loan Documents): (a) Borrower shall supply LHC with a Draw Request in the form provided by LHC requesting disbursement of Loan proceeds for reimbursement of Eligible Expenses. Each Draw Request shall set forth the amount requested (which in no event shall exceed LHC’s pari passu share) and shall be accompanied by partial releases of liens from the general contractor and all major subcontractors to the effect that such amount has been paid for labor and materials supplied to the Project for the immediately preceding draw period and that general contractor and the major subcontractors claim no lien on the Project, and such other evidence as may be required by this Agreement or by LHC. By executing and delivering a Draw Request to LHC, Borrower agrees and acknowledges that such execution and delivery shall constitute a reaffirmation that the warranties and representations in the MRLF Legal Loan Documents are correct and true in all material respects, that all the covenants, terms, and conditions of this Agreement are being and have been complied with, and that no Event of Default has occurred and is continuing as of the date of the Draw Request. LHC shall have received for its approval the Draw Request for such disbursement, and any other certifications provided for herein or as requested by LHC in its reasonable discretion. For all draw requests submitted for payment of any contractor or supplier with an Identity of Interest relationship with the Borrower, the Borrower’s Architect shall submit a certification of cost reasonableness, establishing that such costs are reasonable. (b) All conditions precedent to the funding of any construction loan shall have been satisfied to the construction lender's satisfaction and there shall be no defaults or events with which the passage of time could serve as the basis for a default under the Construction Senior Loan. (c) There shall be at all times undisbursed loan fundsfunds (collectively held by LHC and the other lenders), which, when combined with any committed sourcesequity amounts to be funded by the Investor [Member][Limited Partner], are sufficient to complete the construction of the Project. Each Draw Request from Borrower shall be deemed to be a certification by Borrower to LHC that, taking into account any retainage, there will be sufficient funds to complete the Project. (d) LHC shall have received from the Inspector or from Borrower a copy of Inspector’s report prior to the date of such Draw Request and such report shall be satisfactory to LHC in its sole discretion. (e) LHC shall have received an endorsement to the title insurance policy using standard construction loan disbursement endorsements updating the status of title to the date of the current Draw Request and increasing the insurance coverage to an amount equal to the sum of all prior Draw Requests and the current Draw Request, without additional exceptions or objections, except those specifically approved in writing by LHC. (f) LHC shall have received evidence that all certificates of insurance as to Builder's Risk and Hazard Insurance remain in effect. (g) The warranties and representations contained in the MRLF Legal Loan Documents are correct and true, in all material respects, all the covenants, terms and conditions of the MRLF Legal Loan Documents remain satisfied, and no uncured Event of Default, default, or circumstances or events which upon the lapse of time, the giving of notice, or both, could become an Event of Default, have occurred as of the date of the Draw Request under the MRLF Legal Loan Documents. (h) LHC shall have received a certificate of Borrower included with each Draw Request stating that Borrower has satisfied and is in compliance with all of the terms, covenants and conditions of contained in the the Application, the MRLF 2018 Piggyback Program, and the 2018 Piggyback NOFA, the and all laws, rules, regulations, ordinances and codes applicable to the Project, including without limitation CDBG CDBG-DR regulations, to the extent not waived in writing. Such certificate shall state that all of Borrower’s representations, warranties and covenants contained in the Application and the MRLF Legal Loan Documents are true and correct in all material respects as of the Disbursement Date, and Borrower has performed all of its obligations under the MRLF Legal Loan Documents, and no Event of Default, or circumstance or event which with notice or the passage of time, or both would constitute an Event of Default under the MRLF Legal Loan Documents shall exist as of the Disbursement Date. (i) If requested by LHC, Borrower shall furnish copies, certified by Borrower to be true and correct, of all subcontracts and purchase orders for the provision of labor and materials for the construction of the Improvements and statements from each subcontractor and supplier: stating the amount of its contract and the amount paid to date; and acknowledging full payment (less retainage) of all sums due and payable for all work done and materials supplied.the (j) If requested by LHC, Borrower shall furnish to LHC evidence reasonably satisfactory to LHC that Borrower and general contractor have obtained or can obtain all necessary materials as and when required for the completion of the Project in accordance with the Plans and Specifications.

Appears in 1 contract

Samples: Gap Financing Loan Agreement

Conditions to be Met for All Draws. The following are conditions for all draws and must be satisfied in the sole and reasonable absolute discretion of LHC (it being understood and agreed that subject to the provisions contained in Section 4 of this AgreementSection, LHC may withhold from disbursement any amounts required to fund any reserve required by the terms of the MRLF Legal Loan Documents): (a) Borrower shall supply LHC with a Draw Request in the form provided by LHC requesting disbursement of Loan proceeds for reimbursement of Eligible Expenses. Each Draw Request shall set forth the amount requested (which in no event shall exceed LHC’s pari passu share) and shall be accompanied by partial releases of liens from the general contractor and all major subcontractors to the effect that such amount has been paid for labor and materials supplied to the Project for the immediately preceding draw period and that general contractor and the major subcontractors claim no lien on the Project, and such other evidence as may be required by this Agreement or by LHC. By executing and delivering a Draw Request to LHC, Borrower Xxxxxxxx agrees and acknowledges that such execution and delivery shall constitute a reaffirmation that the warranties and representations in the MRLF Legal Loan Documents are correct and true in all material respects, that all the covenants, terms, and conditions of this Agreement are being and have been complied with, and that no Event of Default has occurred and is continuing as of the date of the Draw Request. LHC shall have received for its approval the Draw Request for such disbursement, and any other certifications provided for herein or as requested by LHC in its reasonable discretion. For all draw requests submitted for payment of any contractor or supplier with an Identity of Interest relationship with the Borrower, the Borrower’s Architect shall submit a certification of cost reasonableness, establishing that such costs are reasonable. (b) All conditions precedent to the funding of any construction loan shall have been satisfied to the construction lender's satisfaction and there shall be no defaults or events with which the passage of time could serve as the basis for a default under the Construction Senior Loan. (c) There shall be at all times undisbursed loan fundsfunds (collectively held by LHC and the other lenders), which, when combined with any committed sourcesequity amounts to be funded by the Investor [Member][Limited Partner], are sufficient to complete the construction of the Project. Each Draw Request from Borrower shall be deemed to be a certification by Borrower to LHC that, taking into account any retainage, there will be sufficient funds to complete the Project. (d) LHC shall have received from the Inspector or from Borrower a copy of Inspector’s report prior to the date of such Draw Request and such report shall be satisfactory to LHC in its sole discretion. (e) LHC shall have received an endorsement to the title insurance policy using standard construction loan disbursement endorsements updating the status of title to the date of the current Draw Request and increasing the insurance coverage to an amount equal to the sum of all prior Draw Requests and the current Draw Request, without additional exceptions or objections, except those specifically approved in writing by LHC. (f) LHC shall have received evidence that all certificates of insurance as to Builder's Risk and Hazard Insurance remain in effect. (g) The warranties and representations contained in the MRLF Legal Loan Documents are correct and true, in all material respects, all the covenants, terms and conditions of the MRLF Legal Loan Documents remain satisfied, and no uncured Event of Default, default, or circumstances or events which upon the lapse of time, the giving of notice, or both, could become an Event of Default, have occurred as of the date of the Draw Request under the MRLF Legal Loan Documents. (h) LHC shall have received a certificate of Borrower included with each Draw Request stating that Borrower has satisfied and is in compliance with all of the terms, covenants and conditions of contained in the Application, the MRLF 2018 Piggyback Program, and the 2020 Piggyback PRIME NOFA, the and all laws, rules, regulations, ordinances and codes applicable to the Project, including without limitation CDBG CDBG-DR regulations, to the extent not waived in writing. Such certificate shall state that all of Borrower’s representations, warranties and covenants contained in the Application and the MRLF Legal Loan Documents are true and correct in all material respects as of the Disbursement Date, and Borrower has performed all of its obligations under the MRLF Legal Loan Documents, and no Event of Default, or circumstance or event which with notice or the passage of time, or both would constitute an Event of Default under the MRLF Legal Loan Documents shall exist as of the Disbursement Date. (i) If requested by LHC, Borrower shall furnish copies, certified by Borrower to be true and correct, of all subcontracts and purchase orders for the provision of labor and materials for the construction of the Improvements and statements from each subcontractor and supplier: stating the amount of its contract and the amount paid to date; and acknowledging full payment (less retainage) of all sums due and payable for all work done and materials supplied. (j) If requested by LHC, Borrower shall furnish to LHC evidence reasonably satisfactory to LHC that Borrower and general contractor have obtained or can obtain all necessary materials as and when required for the completion of the Project in accordance with the Plans and Specifications.

Appears in 1 contract

Samples: Gap Financing Loan Agreement

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Conditions to be Met for All Draws. The following are conditions for all draws and must be satisfied in the sole and reasonable discretion of LHC (it being understood and agreed that subject to the provisions contained in Section 4 of this Agreement, LHC may withhold from disbursement any amounts required to fund any reserve required by the terms of the MRLF Legal Loan Documents): (a) Borrower shall supply LHC with a Draw Request in the form provided by LHC requesting disbursement of Loan proceeds for reimbursement of Eligible Expenses. Each Draw Request shall set forth the amount requested (which in no event shall exceed LHC’s pari passu share) and shall be accompanied by partial releases of liens from the general contractor and all major subcontractors to the effect that such amount has been paid for labor and materials supplied to the Project for the immediately preceding draw period and that general contractor and the major subcontractors claim no lien on the Project, and such other evidence as may be required by this Agreement or by LHC. By executing and delivering a Draw Request to LHC, Borrower Xxxxxxxx agrees and acknowledges that such execution and delivery shall constitute a reaffirmation that the warranties and representations in the MRLF Legal Loan Documents are correct and true in all material respects, that all the covenants, terms, and conditions of this Agreement are being and have been complied with, and that no Event of Default has occurred and is continuing as of the date of the Draw Request. LHC shall have received for its approval the Draw Request for such disbursement, and any other certifications provided for herein or as requested by LHC in its reasonable discretion. For all draw requests submitted for payment of any contractor or supplier with an Identity of Interest relationship with the Borrower, the Borrower’s Architect shall submit a certification of cost reasonableness, establishing that such costs are reasonable. (b) All conditions precedent to the funding of any construction loan shall have been satisfied to the construction lender's satisfaction and there shall be no defaults or events with which the passage of time could serve as the basis for a default under the Construction Loan. (c) There shall be at all times undisbursed loan funds, which, when combined with any committed sourcesequity amounts to be funded by the Investor, are sufficient to complete the construction of the Project. Each Draw Request from Borrower shall be deemed to be a certification by Borrower to LHC that, taking into account any retainage, there will be sufficient funds to complete the Project. (d) LHC shall have received from the Inspector or from Borrower a copy of Inspector’s report prior to the date of such Draw Request and such report shall be satisfactory to LHC in its sole discretion. (e) LHC shall have received an endorsement to the title insurance policy using standard construction loan disbursement endorsements updating the status of title to the date of the current Draw Request and increasing the insurance coverage to an amount equal to the sum of all prior Draw Requests and the current Draw Request, without additional exceptions or objections, except those specifically approved in writing by LHC. (f) LHC shall have received evidence that all certificates of insurance as to Builder's Risk and Hazard Insurance remain in effect. (g) The warranties and representations contained in the MRLF Legal Loan Documents are correct and true, in all material respects, all the covenants, terms and conditions of the MRLF Legal Loan Documents remain satisfied, and no uncured Event of Default, default, or circumstances or events which upon the lapse of time, the giving of notice, or both, could become an Event of Default, have occurred as of the date of the Draw Request under the MRLF Legal Loan Documents.. DRAFT (h) LHC shall have received a certificate of Borrower included with each Draw Request stating that Borrower has satisfied and is in compliance with all of the terms, covenants and conditions of the Application, the MRLF Program, and all laws, rules, regulations, ordinances and codes applicable to the Project, including without limitation CDBG regulations, to the extent not waived in writing. Such certificate shall state that all of Borrower’s representations, warranties and covenants contained in the Application and the MRLF Legal Loan Documents are true and correct in all material respects as of the Disbursement Date, and Borrower has performed all of its obligations under the MRLF Legal Loan Documents, and no Event of Default, or circumstance or event which with notice or the passage of time, or both would constitute an Event of Default under the MRLF Legal Loan Documents shall exist as of the Disbursement Date. (i) If requested by LHC, Borrower shall furnish copies, certified by Borrower to be true and correct, of all subcontracts and purchase orders for the provision of labor and materials for the construction of the Improvements and statements from each subcontractor and supplier: stating the amount of its contract and the amount paid to date; and acknowledging full payment (less retainage) of all sums due and payable for all work done and materials supplied. (j) If requested by LHC, Borrower shall furnish to LHC evidence reasonably satisfactory to LHC that Borrower and general contractor have obtained or can obtain all necessary materials as and when required for the completion of the Project in accordance with the Plans and Specifications.

Appears in 1 contract

Samples: Performance and Completion Guaranty

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