Common use of Construction of Buildings or Improvements Clause in Contracts

Construction of Buildings or Improvements. 9.1 The borrower will not demolish, construct, alter or add to any buildings or improvements on the land without the prior written consent of the lender and then only in accordance with accepted construction standards, building codes and municipal or government requirements and plans and specifications approved by the lender. By granting approval, the lender does not assume responsibility for the conformity of any documentation to any set standard, code or other requirement. 9.2 The lender or its agent may, at any time it becomes aware of a failure to carry on approved work in a timely manner or in accordance with accepted standards, enter the property and have exclusive possession of the property and of all materials, plant, gear and equipment on the property, free of interference from the borrower, and complete construction of the building(s) in accordance with exiting plans or such other plans as the lender may choose. The costs of such construction will form part of the mortgage money, be due on demand and bear interest until fully paid. 9.3 The money advanced pursuant to this mortgage is not to be used for the purpose of securing the financing of any improvement (as defined in the Builders’ Lien Act (Saskatchewan)) to the land or for repaying any mortgage or charge which was taken to secure the financing of an improvement of the land, unless the mortgage money was advanced for this expressed purpose with the lender’s knowledge and set out as such in the loan documents. 9.4 If this mortgage was advanced with the expressed intent to finance any construction, alteration or addition, the lender may make advances of the principal amount to the borrower based on the progress of construction. The lender will decide whether or not any advances will be made, the amount of the advances and holdback requirements, and when and on what criteria those advances will be made. 9.5 During such time or times that there is construction of any buildings or other improvements on the property, the borrower or the borrower’s contractor must maintain builder’s all risk insurance with a stated amount clause for the improvements to their full insurable value.

Construction of Buildings or Improvements. 9.1 The borrower will not demolish, construct, alter or add to any buildings or improvements on the land without the prior written consent of the lender and then only in accordance with accepted construction standards, building codes and municipal or government requirements and plans and specifications approved by the lender. By granting approval, the lender does not assume responsibility for the conformity of any documentation to any set standard, code or other requirement. 9.2 The lender or its agent may, at any time it becomes aware of a failure to carry on approved work in a timely manner or in accordance with accepted standards, enter the property and have exclusive possession of the property and of all materials, plant, gear and equipment on the property, free of interference from the borrower, and complete construction of the building(s) in accordance with exiting plans or such other plans as the lender may choose. The costs of such construction will form part of the mortgage money, be due on demand and bear interest until fully paid. 9.3 The money advanced pursuant to this mortgage is not to be used for the purpose of securing the financing of any improvement (as defined in the Builders’ Lien Act (Saskatchewan)Act) to the land or for repaying any mortgage or charge which was taken to secure the financing of an improvement of the land, unless the mortgage money was advanced for this expressed purpose with the lender’s knowledge and set out as such in the loan documents. 9.4 If this mortgage was advanced with the expressed intent to finance any construction, alteration or addition, the lender may make advances of the principal amount to the borrower based on the progress of construction. The lender will decide whether or not any advances will be made, the amount of the advances and holdback requirements, and when and on what criteria those advances will be made. 9.5 During such time or times that there is construction of any buildings or other improvements on the property, the borrower or the borrower’s contractor must maintain builder’s all risk insurance with a stated amount clause for the improvements to their full insurable value.

Construction of Buildings or Improvements. 9.1 The borrower will not demolish, construct, alter or add to any buildings or improvements on the land without the prior written consent of the lender and then only in accordance with accepted construction standards, building codes and municipal or government requirements and plans and specifications approved by the lender. By granting approval, the lender does not assume responsibility for the conformity of any documentation to any set standard, code or other requirement. 9.2 The lender or its agent may, at any time it becomes aware of a failure to carry on approved work in a timely manner or in accordance with accepted standards, enter the property and have exclusive possession of the property and of all materials, plant, gear and equipment on the property, free of interference from the borrower, and complete construction of the building(s) in accordance with exiting plans or such other plans as the lender may choose. The costs of such construction will form part of the mortgage money, be due on demand and bear interest until fully paid. 9.3 The money advanced pursuant to this mortgage is not to be used for the purpose of securing the financing of any improvement (as defined in the Builders’ Lien Act (Saskatchewan)Construction Act) to the land or for repaying any mortgage or charge which was taken to secure the financing of an improvement of the land, unless the mortgage money was advanced for this expressed purpose with the lender’s knowledge and set out as such in the loan documents. 9.4 If this mortgage was advanced with the expressed intent to finance any construction, alteration or addition, the lender may make advances of the principal amount to the borrower based on the progress of construction. The lender will decide whether or not any advances will be made, the amount of the advances and holdback requirements, and when and on what criteria those advances will be made. 9.5 During such time or times that there is construction of any buildings or other improvements on the property, the borrower or the borrower’s contractor must maintain builder’s all risk insurance with a stated amount clause for the improvements to their full insurable value.