Common use of Disbursement of Loan Proceeds Clause in Contracts

Disbursement of Loan Proceeds. (a) Each disbursement request shall be delivered to DNR. Each request must contain invoices or other evidence acceptable to DNR and DOA that Project Costs for which disbursement is requested have been incurred by the Municipality. (b) The SDWLP, through its agents or Trustee, plans to make disbursements of Loan proceeds on a semimonthly basis upon approval of each disbursement request by DNR and DOA. Such approval by DNR and DOA may require adjustment and corrections to the disbursement request submitted by the Municipality. The Municipality shall be notified whenever such an adjustment or correction is made by DNR or DOA. (c) Disbursements made to the Municipality are subject to pre- and post-payment adjustments by DNR or DOA. (1) If the Loan proceeds are not yet fully disbursed, and SDWLP funds were previously disbursed for costs not eligible for SDWLP funding or not eligible under this FAA, the SDWLP shall make necessary adjustments to future disbursements. (2) If the Loan proceeds are fully disbursed, including disbursements for any costs not eligible for SDWLP funding or not eligible under this FAA, the Municipality agrees to repay to the SDWLP an amount equal to the non-eligible costs within 60 days of notification by DNR or DOA. The SDWLP shall then apply the amount it receives as a Loan prepayment. (d) The SDWLP or its agent shall disburse Loan proceeds only to the Municipality's account by electronic transfer of funds. The Municipality hereby covenants that it shall take actions and provide information necessary to facilitate these transfers. (e) Disbursement beyond ninety-five percent (95%) of the principal amount of the Loan, unless otherwise agreed to by DNR and DOA pursuant to a written request from the Municipality, may be withheld until: (1) DNR is satisfied that the Project has been completed in accordance with the Plans and Specifications, and DNR has approved all change orders relating to the Project; (2) the Municipality certifies to DNR its acceptance of the Project from its contractors; (3) the Municipality certifies in writing to DNR its compliance with applicable Federal requirements (certification must be as prescribed on Exhibit G); and (4) DNR certifies in writing to DOA the Municipality’s compliance with all applicable requirements of this FAA. (f) Treas. Regs. 26 CFR § 1.148-6(d)(1) (iii) applies to project expenditures; it states, in part, “An issuer must account for the allocation of proceeds to expenditures not later than 18 months after the later of the date the expenditure is paid or the date the project, if any, that is financed by the issue is placed in service”.

Disbursement of Loan Proceeds. (a) Each disbursement request shall be delivered to DNR. Each request must contain invoices or other evidence acceptable to DNR and DOA that Project Costs for which disbursement is requested have been incurred by the Municipality. (b) The SDWLP, through its agents or Trustee, plans to make disbursements of Loan proceeds on a semimonthly basis upon approval of each disbursement request by DNR and DOA. Such approval by DNR and DOA may require adjustment and corrections Subject to the conditions described in this Section, KDHE agrees to disburse the proceeds of the Loan during the progress of the Project. Requests for disbursement request may be submitted by the MunicipalityMunicipality (in substantially the form attached hereto as Exhibit E), not more than once per month, in accordance with the procedures set forth by KDHE. Any request for disbursement must be supported by proper invoices and a certificate of the Authorized Municipality Representative to the effect that all representations made in this Loan Agreement remain true as of the date of the request and, based upon that information then available to such person, no adverse developments affecting the financial condition of the Municipality or its ability to complete the Project or to repay the Loan have occurred. The Municipality shall be notified whenever such an adjustment or correction is made by DNR or DOA. (c) Disbursements made to the Municipality are subject to pre- and post-payment adjustments by DNR or DOA. (1) If the Loan proceeds are not yet fully disbursedmay request disbursement for Project Costs, and SDWLP funds were previously disbursed for costs not eligible for SDWLP funding or not eligible under this FAA, the SDWLP shall make necessary adjustments to future disbursements. (2) If the Loan proceeds are fully disbursed, including disbursements for any costs not eligible for SDWLP funding or not eligible under this FAA, the Municipality agrees to repay to the SDWLP an amount equal to the non-eligible costs within 60 days of notification by DNR or DOA. The SDWLP shall then apply the amount it receives as a Loan prepayment. (d) The SDWLP or its agent shall disburse Loan proceeds only to the Municipality's account by electronic transfer of funds. The Municipality hereby covenants that it shall take actions and provide information necessary to facilitate these transfers. (e) Disbursement beyond ninety-five percent (95%) of the principal amount of the Loan, unless otherwise agreed to by DNR and DOA pursuant to a written request from the Municipality, may be withheld untilincluding: (1) DNR any eligible planning/design costs incurred prior to execution of this Loan Agreement (initial disbursement request only); (2) disbursement for eligible Project Costs if such Project Costs have been incurred and are due and payable to Project contractors (actual payment of such Project Costs by the Municipality is satisfied that not required as a condition of the Project has been completed in accordance with payment request); (3) interest becoming due on the Plans and Specifications, and DNR has approved all change orders relating Loan prior to the Projectinitial scheduled payment of principal; (b) KDHE shall not be under any obligation to disburse any Loan proceeds to the Municipality under this Loan Agreement unless: (1) there are moneys available in the Revolving Fund to fund the Loan, as determined solely by KDHE; (2) the Municipality certifies shall have funds available to DNR its acceptance pay for that portion of the Project from its contractorsCosts not eligible (pursuant to the Loan Act or the Federal Act) to be funded under this Loan Agreement; (3) no Event of Default by the Municipality certifies in writing to DNR its compliance with applicable Federal requirements (certification must shall have occurred and be as prescribed on Exhibit G)continuing; and (4) DNR certifies in writing KDHE’s reasonable discretion, the Municipality continues to DOA the Municipality’s compliance with all applicable requirements of this FAA. (f) Treas. Regs. 26 CFR § 1.148-6(d)(1) (iii) applies to project expenditures; it states, in part, “An issuer must account for the allocation of proceeds to expenditures not later than 18 months after the later maintain reasonable progress towards completion of the date the expenditure is paid or the date the project, if any, that is financed by the issue is placed in service”Project.

Disbursement of Loan Proceeds. (a) Each disbursement request shall The Loan may be delivered to DNR. Each request must contain invoices disbursed by KHC in one lump sum or other evidence acceptable to DNR and DOA that Project Costs for which disbursement is requested have been incurred by the Municipality.in multiple advances as KHC may determine in its sole discretion; (b) The SDWLP, through its agents or Trustee, plans to make disbursements of Loan proceeds on a semimonthly basis upon approval of each disbursement request by DNR Proceeds will be provided only for costs and DOA. Such approval by DNR reimbursement items identified in the financial spreadsheet attached hereto and DOA may require adjustment and corrections to the disbursement request submitted by the Municipality. The Municipality shall be notified whenever such an adjustment or correction is made by DNR or DOA.incorporated herein as Exhibit B; (c) Disbursements made Disbursement of Loan Proceeds to the Municipality Owner shall be made by KHC within 30 days after invoices are subject received and approved for payment for services, fees and costs incurred by Owner. Reimbursement by KHC does not imply acceptance of the work or concurrence in the eligibility of such reimbursement by KHC and KHC reserves the right to pre- disallow payment of any item of cost or expense at any time upon later review and post-payment adjustments by DNR or DOA. (1) If the Loan proceeds are not yet fully disbursed, and SDWLP funds were previously disbursed for costs not eligible for SDWLP funding or not eligible under this FAA, the SDWLP shall make necessary adjustments upon Owner's final submission of cost certification items to future disbursements. (2) If the Loan proceeds are fully disbursed, including disbursements for any costs not eligible for SDWLP funding or not eligible under this FAA, the Municipality agrees to repay to the SDWLP an amount equal to the non-eligible costs within 60 days of notification by DNR or DOA. The SDWLP shall then apply the amount it receives as a Loan prepayment.KHC; (d) The SDWLP Requests for payment shall be in writing on a form provided by KHC. These forms and draw requirements may be amended at any time to comply with KHC's policies and procedures. In order to receive payment under this Agreement, Owner shall submit requests for payment based upon actual expenditures. KHC may set a minimum payment level or its agent amount for each request for payment. Funds will NOT be provided in advance for any costs or expenses. KHC will not provide Loan Proceeds to Owner in advance of need. Any disbursement in violation of this section shall disburse Loan proceeds only be subject to immediate repayment to KHC by the Municipality's account by electronic transfer of funds. The Municipality hereby covenants that it shall take actions and provide information necessary to facilitate these transfers.Owner; (e) Disbursement beyond ninety-five percent (95%) of the principal amount of the LoanDraws must be submitted to KHC with all required signatures. If Owner has other funding sources, unless otherwise agreed to by DNR and DOA pursuant to a written request from the Municipality, may all disbursements must be withheld until: (1) DNR is satisfied that the Project has been completed made in accordance with a disbursement agreement signed by all parties in form and substance acceptable to KHC. KHC will not disburse any Loan Proceeds to Owner if at any time there are not sufficient funds available from all funding sources to support the Plans and Specifications, and DNR has approved all change orders relating to construction and/or rehabilitation of the Project; (2f) The Owner must fully account for all costs and expenses involved in the Municipality certifies Project to DNR its acceptance satisfy KHC close out requirements at the end of the construction or rehabilitation of the Project from its contractors(“Cost Certification”) and throughout the disbursement period as necessary to meet all applicable Tax Credit Program Requirements. KHC may establish separate reserves during the disbursement process to provide funds it deems necessary to ensure completion of the Project, including contractor holdbacks for work completed and hold back of earned but unpaid Developer fees; (3g) KHC will only disburse funds it receives from the Municipality certifies United States Department of Treasury (“Treasury”) pursuant to the Exchange Program. Nothing herein shall be construed as an assurance that funds will be available to the Project from the Treasury and Owner waives and holds KHC harmless from any delay or failure to fund for circumstances beyond KHC's control; (h) Time is of the essence and Owner hereby covenants to complete thirty percent (30%) (the “Initial Completion Requirement”) of the Project as described in writing the Plans and Specifications prior to DNR its compliance with applicable Federal requirements November 1, 2010 and submit all draw requests and supporting documentation required to evidence the attainment of the Initial Completion Requirement to KHC no later than November 15, 2010. No later than November 15, 2010, KHC may grant one thirty (certification must 30) day extension if the Owner demonstrates that at least thirty percent (30%) of the Project will be as prescribed on Exhibit G)completed by December 15, 2010. Failure to complete thirty percent (30%) of the Project prior to November 1, 2010 or to demonstrate that thirty percent (30%) of the Project will be completed by December 30, 2010 shall constitute an event of default; and (4i) DNR certifies Provided that the Owner meets the deadlines provided in writing Paragraph 4(h) above, the Owner may continue to DOA expend Loan Proceeds after July 1, 2010, except that, the Municipality’s compliance with all applicable requirements of this FAA. (f) TreasExchange Program prohibits KHC from disbursing Loan Proceeds after December 31, 2011. Regs. 26 CFR § 1.148-6(d)(1) (iii) applies to project expenditures; it states, The Project must be completed and each building in part, “An issuer must account for the allocation of proceeds to expenditures not Project placed in service no later than 18 months after the later of the date the expenditure is paid or the date the projectNovember 15, if any, that is financed by the issue is placed in service”2011.

Disbursement of Loan Proceeds. (a) Each disbursement request Funds in the Mortgage Loan Fund shall be delivered to DNR. Each request must contain invoices or other evidence acceptable to DNR and DOA that Project Costs for which disbursement is requested have been incurred disbursed by the MunicipalityTrustee upon receipt of an original executed Funding Requisition, substantially in the form in Exhibit B hereto, executed by the Borrowers Representative and approved by XXXX Advisory Services, LLC, pursuant to the Construction Management Agreement. Such disbursements shall be limited in frequency to no more than two per calendar month. (b) The SDWLPOn the first regularly scheduled Interest Payment Date on or after the Completion Date (unless such date is extended by the written consent of the Issuer, through its agents or Trusteeand the Bank, plans to make disbursements the Trustee and the Issuer have received an opinion of Loan proceeds on a semimonthly basis upon approval of each disbursement request by DNR and DOA. Such approval by DNR and DOA may require adjustment and corrections Bond Counsel to the disbursement request submitted by effect that such extension will not affect the Municipalitytax exempt status of the Bonds), the Trustee shall transfer to the Principal Account of the Debt Service Fund the amount of funds allocable to such Bonds remaining in the Mortgage Loan Fund on the Completion Date (or the 15th day of the second month preceding the month in which any extension of such prepayment date ends). The Municipality Mortgage Note will be prepaid in that amount on the first regularly scheduled Interest Payment Date on or after the Completion Date. Upon the Bank’s payment of a draw on the Letter of Credit to partially redeem Bonds, the Trustee shall deliver the unused Bond proceeds and interest earnings thereon to the Bank to reimburse the Bank for payment of such draw, and the amount of unused Bond proceeds shall be notified whenever such credited against the Borrower’s obligations under the Reimbursement Agreement. Unless there has been an adjustment or correction is made by DNR or DOAextension of the redemption date as provided in this subsection, no Funding Requisition requesting a draw upon the Mortgage Loan Fund will be honored after the Completion Date. (c) Disbursements made The Borrowers covenant and agree that (i) it will cause all of the moneys disbursed from the Mortgage Loan Fund (including any investment earnings on such moneys) to the Municipality are subject to pre- and post-payment adjustments by DNR or DOA. (1) If the Loan proceeds are not yet fully disbursedbe disbursed for Project Costs, and SDWLP funds were previously (ii) that no moneys will be disbursed for costs not eligible for SDWLP funding or not eligible under this FAA, from the SDWLP shall make necessary adjustments Mortgage Loan Fund to future disbursements. (2) If the Loan proceeds are fully disbursed, including disbursements for any costs not eligible for SDWLP funding or not eligible under this FAA, the Municipality agrees to repay to the SDWLP an amount equal to the non-eligible costs within 60 days of notification by DNR or DOA. The SDWLP shall then apply the amount it receives as a Loan prepaymentpay Issuance Costs. (d) The SDWLP or its agent Within two (2) Business Days of receipt of an original executed Funding Requisition, properly executed by the Borrowers, the Trustee, subject to the availability of liquid funds, shall disburse moneys from the Mortgage Loan proceeds only Fund to the Municipality's Borrower’s account by electronic transfer of funds. The Municipality hereby covenants that it shall take actions and provide information necessary to facilitate these transfersindicated therein in accordance with such Funding Requisition. (e) Disbursement beyond ninety-five percent (95%) of The Borrowers hereby agree that funds disbursed to the principal amount of the Loan, unless otherwise agreed Borrowers for further disbursement to by DNR and DOA third parties pursuant to a written request from Funding Requisition (requesting a draw upon the Municipality, may Mortgage Loan Fund) shall be withheld until: (1) DNR is satisfied that paid to such third parties in the Project has been completed in accordance with the Plans and Specifications, and DNR has approved all change orders relating to the Project; (2) the Municipality certifies to DNR its acceptance ordinary course of the Project business. The Borrowers reasonably expect such funds will be disbursed from its contractors; (3) the Municipality certifies in writing to DNR its compliance with applicable Federal requirements (certification must be as prescribed on Exhibit G); and (4) DNR certifies in writing to DOA the Municipality’s compliance with all applicable requirements account within five Business Days of this FAAsuch deposit. (f) Treas. Regs. 26 CFR § 1.148-6(d)(1)[Reserved] (iiig) applies Amounts held under the Indenture shall be invested in accordance with the terms thereof. The Borrowers acknowledge that to project expenditures; it states, in part, “An issuer must account for the allocation of proceeds to expenditures not later than 18 months after the later extent that regulations of the date Comptroller of the expenditure is paid Currency or other applicable regulatory agency grant the date Borrowers the projectright to receive brokerage confirmations of security transactions, if any, that is financed the Borrowers waive receipt of such confirmations. The Trustee shall furnish the Borrowers Representative periodic statements which include detail of all investment transactions made by the issue is placed in service”Trustee.