Common use of Direct Payment to Contractors and Others Clause in Contracts

Direct Payment to Contractors and Others. Borrower agrees that Lender shall have the right, but not the obligation, to pay any amount of any Advance directly to any contractor, title company, project engineer, developer, engineer, design professional or other Person instead of advancing that money to Borrower. No further direction or authorization from Borrower shall be necessary to warrant such direct advances and all such advances shall satisfy pro tanto the obligations of Lender hereunder and shall be secured by the Loan Documents as fully as if made directly to Borrower. Notwithstanding the other provisions of this paragraph, nothing in this Agreement is intended to be for the benefit of, nor may be enforced by, nor should be relied upon by, any Person other than Borrower.