Common use of Direct Disbursements Following Default Clause in Contracts

Direct Disbursements Following Default. After any default by the Borrower hereunder and passage of any cure or grace period permitted hereunder without cure being effected, the Borrower irrevocably permits and authorizes the Financial Monitor to disburse any remaining proceeds of the Loan directly to the subcontractors for the Project but Financial Monitor is not under any obligation so to do. No further direction or authorization from Borrower shall be necessary to warrant such direct disbursements and all such disbursements shall satisfy pro tanto the obligations of the Borrower hereunder and shall be secured by the Mortgage as fully as if made to the Borrower regardless of the disposition thereof by any major subcontractor or such other persons. The Financial Monitor shall impose reasonable conditions for such direct payment including, but not limited to, receipt of estoppel certificates, waivers of lien, releases and the like. The Financial Monitor shall account to the Borrower for all sums so paid. The Financial Monitor shall be under no obligation to disburse funds to complete improvement or rehabilitation of the Project unless sufficient funds are available and on deposit with the Trustee to complete improvement or rehabilitation of the Project and to pay the fees and expenses of the Financial Monitor in connection with such activities. Notwithstanding the foregoing, in the event the Financial Monitor exercises the authority under this Section 7.05, the Financial Monitor shall complete requisitions as required by Section 6.02 of the Indenture pursuant to the authority given to the Financial Monitor under Section 7.04.

Direct Disbursements Following Default. After any default by the Borrower hereunder and passage of any cure or grace period permitted hereunder without cure being effected, the Borrower irrevocably permits and authorizes the Financial Monitor to disburse any remaining proceeds of the Loan directly to the subcontractors for the Project but Financial Monitor is not under any obligation so to do. No further direction or authorization from Borrower shall be necessary to warrant such direct disbursements and all such disbursements shall satisfy pro tanto the obligations of the Borrower hereunder and shall be secured by the Mortgage as fully as if made to the Borrower regardless of the disposition thereof by any major subcontractor or such other persons. The Financial Monitor shall impose reasonable conditions for such direct payment including, but not limited to, receipt of estoppel certificates, waivers of lien, releases and the like. The Financial Monitor shall account to the Borrower for all sums so paid. The Financial Monitor shall be under no obligation to disburse funds to complete improvement or rehabilitation of the Project unless sufficient funds are available and on deposit with the Trustee to complete improvement or rehabilitation of the Project and to pay the fees and expenses of the Financial Monitor in connection with such activities. Notwithstanding the foregoing, in the event the Financial Monitor exercises the authority under this Section 7.05, the Financial Monitor shall complete requisitions as required by Section 6.02 of the Indenture pursuant to the authority given to the Financial Monitor under Section 7.04.7.04.‌

Direct Disbursements Following Default. After any default by the Borrower hereunder and passage of any cure or grace period permitted hereunder without cure being effected, the Borrower irrevocably permits and authorizes the Financial Monitor Servicer to disburse any remaining proceeds of the Loan directly to the subcontractors for the Project but Financial Monitor Servicer is not under any obligation so to do. No further direction or authorization from Borrower shall be necessary to warrant such direct disbursements and all such disbursements shall satisfy pro tanto the obligations of the Borrower hereunder and shall be secured by the Mortgage as fully as if made to the Borrower regardless of the disposition thereof by any major subcontractor or such other persons. The Financial Monitor Servicer shall impose reasonable conditions for such direct payment including, but not limited to, receipt of estoppel certificates, waivers of lien, releases and the like. The Financial Monitor Servicer shall account to the Borrower for all sums so paid. The Financial Monitor Servicer shall be under no obligation to disburse funds to complete improvement or rehabilitation of the Project unless sufficient funds are available and on deposit with the Trustee to complete improvement or rehabilitation of the Project and to pay the fees and expenses of the Financial Monitor in connection with such activities. Notwithstanding the foregoing, in the event the Financial Monitor exercises the authority under this Section 7.05, the Financial Monitor shall complete requisitions as required by Section 6.02 of the Indenture pursuant to the authority given to the Financial Monitor under Section 7.04.or

Direct Disbursements Following Default. After any default by the Borrower hereunder and passage of any cure or grace period permitted hereunder without cure being effected, the Borrower irrevocably permits and authorizes the Financial Monitor Servicer to disburse any remaining proceeds of the Loan directly to the subcontractors for the Project but Financial Monitor Servicer is not under any obligation so to do. No further direction or authorization from Borrower shall be necessary to warrant such direct disbursements and all such disbursements shall satisfy pro tanto the obligations of the Borrower hereunder and shall be secured by the Mortgage as fully as if made to the Borrower regardless of the disposition thereof by any major subcontractor or such other persons. The Financial Monitor Servicer shall impose reasonable conditions for such direct payment including, but not limited to, receipt of estoppel certificates, waivers of lien, releases and the like. The Financial Monitor Servicer shall account to the Borrower for all sums so paid. The Financial Monitor Servicer shall be under no obligation to disburse funds to complete improvement or rehabilitation of the Project unless sufficient funds are available and on deposit with the Trustee to complete improvement or rehabilitation of the Project and to pay the fees and expenses of the Financial Monitor Servicer in connection with such activities. Notwithstanding the foregoing, in the event the Financial Monitor Servicer exercises the authority under this Section 7.05, the Financial Monitor Servicer shall complete requisitions as required by Section 6.02 of the Indenture pursuant to the authority given to the Financial Monitor Servicer under Section 7.04.