Construction Deposits Clause Samples
The Construction Deposits clause establishes the requirement for one party, typically the contractor or property owner, to provide a monetary deposit before construction work begins. This deposit is usually held in trust or escrow and may be used to cover initial project costs, secure the contractor’s commitment, or ensure compliance with contractual obligations. By requiring a deposit, the clause helps guarantee that funds are available for project commencement and protects against potential non-performance or default, thereby reducing financial risk for both parties.
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Construction Deposits. Buyer agrees to deposit $ with Keystone Homes, Inc. for the construction of Home. The deposit (“Deposit”) will be credited toward the Purchase Price of Home at closing. Buyer agrees Deposit is not ▇▇▇▇▇▇▇ money and is not refundable if Buyer does not close on Home by the Closing Date stated in Paragraph 3, Page 1 of this Agreement. This non-refundable Construction Deposit is not subject to the provisions of Paragraph 4 B of this Agreement. The Construction Deposit is not refundable regardless of whether the Buyer’s mortgage loan is approved or not approved as provided in Paragraph 4 B above. Construction Deposits are not subject to any VA or FHA amendments. If Seller does not receive Deposit within five (5) business days of Agreement acceptance, Seller may terminate Agreement. If Buyer uses Lender not on Seller’s approved list and Closing Date is delayed, other than a delay because Seller has not obtained a Certificate of Occupancy for Property, then Seller shall retain $50 per day of Deposit as liquidated damages. Any and all amounts retained by Seller because of Closing Date delays shall not be credited toward the Purchase Price of Property.
Construction Deposits. The Construction Deposits are withheld by the Originator and will be paid out in case certain conditions are met. The Issuer and the Seller will agree in the Mortgage Receivables Purchase Agreement that the Issuer will be entitled to withhold from the Initial Purchase Price on the Closing Date an amount equal to the aggregate Construction Deposits on or around the Closing Date or, in case of a purchase and assignment of any New Mortgage Receivables, on the relevant Purchase Date. Such amounts will be deposited on the Construction Deposit Account. On or around each Mortgage Collection Payment Date, the Issuer will release from the Construction Deposit Account such part of the Initial Purchase Price which equals the positive difference between the balance standing to the credit of the Construction Deposit Account and the aggregate Construction Deposits and pay such amount to the Seller. Pursuant to the Mortgage Conditions in respect of the Mortgage Loans, Construction Deposits have to be paid out within 12 (in the case of existing Mortgaged Assets) to 18 months (in the case of newly built Mortgaged Assets). After such relevant period, if any remaining Construction Deposit is lower than EUR 5,000 it is paid to the Borrower and if it exceeds EUR 5,000, will be set-off against the relevant Mortgage Receivable, up to the amount of the remaining Construction Deposit, in which case the Issuer shall have no further obligation towards the Seller to pay the remaining corresponding part of the Initial Purchase Price and an amount equal to such part of the Initial Purchase Price will be debited from the Construction Deposit Account and will form part of the Available Principal Funds on the immediately succeeding Notes Payment Date. On or before the Closing Date, the Issuer will become a party to the Receivables Proceeds Distribution Agreement under which, inter alia, the Collection Foundation undertakes to transfer all amounts received on the Collection Foundation Account in respect of the Mortgage Receivables, to the Issuer Collection Account.
Construction Deposits. Buyer acknowledges and agrees that (i) Seller (or Affiliates thereof, including without limitation the General Contractor) has provided (or, in Seller's sole discretion may provide) certain security and other deposits, sureties, bonds and/or other similar items in connection with the completion of the Construction Projects (collectively, “Construction Deposits”), including without limitation those set forth on Schedule 8.10 attached hereto, and (ii) the Seller shall be entitled to the entirety of any refund or return of any such Construction Deposits, and for the avoidance of doubt, such amounts shall not be prorated.
Construction Deposits. 5.2.1 Unless otherwise agreed upon by the Parties and set forth In Exhibit B, Seller shall, upon execution of Exhibit B, deposit the estimated cost of Nevada's Facilities with Nevada. Seller's cost for the design and construction of that portion of Nevada's Facilities for which Seller has deposited the estimated cost with Nevada shall be adjusted to Nevada's actual cost after the facilities have been completed. If Seller's construction deposits exceed Nevada's actual cost, Nevada shall refund the excess deposits to Seller within sixty (60) days of the completion of those Facilities. If Nevada's actual cost exceeded Seller's construction deposits, Nevada shall render a bill to Seller for the excess cost.
5.2.2 If that portion of Nevada's Facilities for which Seller has deposited the estimated cost with Nevada shall be used for the sale of electric energy to Seller and related parties as defined In Internal Revenue Service Advance Notice 88-129 and If the electric energy that shall be sold to Seller and related parties has been projected to exceed five (5) percent of the electric energy that shall be sold to Nevada by Seller under the provisions of this Contract, the estimated cost of such facilities shall be Increased by 30.185 percent to cover the Income tax liability attributable to such facilities.
5.2.3 If that portion of Nevada's Facilities for which Seller has deposited the estimated cost with Nevada had been deemed "nontaxable" for the purposes of Section 5.2.2 and if those facilities subsequently became taxable during the term of this Contact because electric energy sales to Seller and related parties exceeded five (5) percent of the electric energy purchased by Nevada under the provisions of this Contract during any three (3) years of a five (5) year period, Nevada shall have the right to bill Seller for the Income tax liability attributable to such facilities because of the sales to Seller and related parties.