Common use of Documents Required for Each Construction Disbursement Clause in Contracts

Documents Required for Each Construction Disbursement. At least ten (10) business days prior to, and as a condition of, each Construction Disbursement, (or at such other date as is expressly provided for herein) Borrower shall furnish to Lender, the Title Company and to the Lender Consultant the following documents covering such disbursement: (a) Borrower’s disbursement request (“Disbursement Request”) in the form of Exhibit C-2 attached hereto. Each such Disbursement Request shall be deemed to be Borrower’s direction to Lender to disburse the funds requested by such Disbursement Request to be disbursed from the proceeds of the Loan in accordance with this Agreement; (b) A certificate as to completion and payment authorization in form reasonably approved by Lender, properly executed by the General Contractor or the Subcontractors seeking payment, the Architect and the Lender Consultant; (c) Owner’s and General Contractor’s sworn statements, and General Contractor’s and Subcontractors’ waivers of lien, covering all work and/or materials for which disbursement is to be made to a date specified therein, and covering all work done on the Property, to a reasonably current date, otherwise paid for or to be paid for by Borrower or any other person, all in compliance with the mechanics’ lien laws of the State of Tennessee and with the requirements of Lender and the Title Company (for issuance of interim title endorsements covering such disbursement), together with such invoices, contracts, Change Orders or other supporting data as Lender or the Title Company may require; (d) Endorsements to the Title Policy to cover the amount and date of the Construction Disbursement (whether into escrow or otherwise) insuring that the Security Instrument is a first, prior and paramount lien on the Property subject only to Permitted Encumbrances (and to exceptions and objections in the usual form relating to the issuance of a mortgage title insurance policy, which by their nature cannot be waived or removed until the Final Construction Disbursement of the proceeds of the Loan), that nothing has intervened to affect the validity or priority of the Security Instrument, insuring against mechanics’ lien claims for work performed prior to the date covered by such continuation, and containing a mechanics’ lien interim certification to cover the amount of the Loan then disbursed (including the current Construction Disbursement); which endorsements may be delivered to Lender concurrently with the disbursement of the Loan Proceeds which are the subject of the endorsements; (e) A statement indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment; (f) Such other papers and documents as the Title Company may require for the issuance of endorsements to the Title Policy for each disbursement of Loan Proceeds; (g) An updated Construction Schedule, including a statement from each of the General Contractor and the Architect that, in their best professional judgment, the Construction Schedule, as updated, is realistic and can be adhered to in completing the Project in accordance with the Plans; (h) A report from the Lender Consultant, in form and substance reasonable satisfactory to Lender; (i) An updated Draw Schedule, if the Borrower is requesting any modification to the Draw Schedule previously approved by Lender; (j) Copies of any Change Orders to the General Contract not theretofore delivered to Lender, together with a statement of any anticipated changes in any line item of Project Costs which could result in a future Change Order; (k) Copies of any Subcontracts, or Change Orders to Subcontracts, not theretofore delivered to Lender and requested by Lender in Lender’s sole discretion; and (l) If the advance of Loan Proceeds is being made concurrently with a disbursement of Borrower equity, all such disbursements have been approved and the funds to be advanced pursuant to such disbursements have been deposited into the Construction Escrow.

Documents Required for Each Construction Disbursement. At least ten (10) business days prior to, and as a condition of, each “Construction Disbursement”, (or at such other date as is expressly provided for herein) Borrower shall furnish to Lender, the Title Company Lender and to the Lender Lender’s Consultant the following documents covering such disbursement: (a) Borrower’s disbursement request (“Disbursement RequestRequest For Advance”) in ), which shall, among other things specify the form amount of Exhibit C-2 attached hereto. Each such Disbursement Request shall be deemed to be Borrower’s direction to the requested disbursement (exclusive of interest); direct Lender to disburse the such funds requested by such Disbursement Request to be disbursed from the proceeds of the Loan in accordance with this Agreement; and certify to Lender, as of the date of the applicable request for disbursement, that: (i) the total amount of each request for disbursement (exclusive of interest) represents the actual amount payable to the General Contractor and/or Subcontractors who have performed work on the Project and indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment; (ii) no Event of Default, or condition or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, exists under this Agreement; (iii) the representations and warranties contained in Article 2 of this Agreement are true and correct; (iv) Borrower has received no notice and has no knowledge of any liens or claims of lien either filed or threatened against the Premises except the liens of Lender and those which are specifically identified in writing to Lender; (v) all amounts shown as previous payments on the current disbursement request have been paid to the parties entitled to such payment; (vi) approval by Borrower of all work and materials for which a payment is then due and for which disbursement of the Loan is thereby requested; (vii) that all work and materials theretofore furnished for the Project conform with the Plans and Specifications; (viii) copies of all Construction Contracts, as then in effect, have been delivered to Lender; and (ix) the Loan is In Balance; (b) A certificate as to completion and payment authorization in form reasonably approved by Lender, properly executed by the General Contractor or the Subcontractors seeking payment, the Architect and the Lender Lender’s Consultant; (c) Owner’s and General Contractor’s sworn statements’s, and General Contractor’s and Subcontractors’ sworn statements and waivers of lien, covering all work and/or materials for which disbursement is to be made to a date specified therein, and covering all work done on the PropertyPremises, to a reasonably current date, otherwise paid for or to be paid for by Borrower or any other person, all in compliance with the mechanics’ lien laws of the State of Tennessee and with the requirements of Lender and the Title Insurance Company (for issuance of interim title endorsements covering such disbursement), together with such invoices, contracts, Change Orders contracts or other supporting data as Lender or the Title Insurance Company may require; (d) Disclaimers from suppliers of fixtures and equipment of any vendor’s lien or purchase money security interest therein and evidence satisfactory to Lender that all fixtures and equipment are and will remain free of security interests of all kinds other than security interests of Lender; (e) Endorsements to the Construction Title Insurance Policy to cover the amount and date of the Construction Disbursement (whether into escrow or otherwise) insuring that the Security Instrument Mortgage is a first, prior and paramount lien on the Property Land subject only to Permitted Encumbrances Exceptions (and to exceptions and objections in the usual form relating to the issuance of a mortgage title insurance policy, which by their nature cannot be waived or removed until the Final Construction Disbursement final disbursement of the proceeds of the Loan), that nothing has intervened to affect the validity or priority of the Security InstrumentMortgage, insuring against mechanics’ lien claims for work performed prior to the date covered by such continuation, and containing a mechanics’ lien interim certification to cover the amount of the Loan then disbursed (including the current Construction Disbursement); which those endorsements may be delivered to Lender concurrently with the disbursement of the Loan Proceeds which are the subject of the those endorsements; (e) A statement indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment; (f) Such other papers and documents as the Title Insurance Company may require for the issuance of endorsements to the Construction Title Insurance Policy for each disbursement of Loan Proceeds; (g) An updated Construction Schedule, including a statement from each of the General Contractor and the Architect that, in their best professional judgment, the Construction Schedule, as updated, is realistic and can be adhered to in completing the Project in accordance with the Plans;Plans and Specifications; and (h) A report from the Lender Consultant, in form and substance reasonable Evidence satisfactory to Lender;Lender that the following conditions are true: (i) An updated Draw ScheduleBorrower, if the Borrower is requesting any modification Architect and Lender’s Consultant shall provide evidence that all proceeds of the Loan disbursed to date have been applied to payment of the Draw Schedule previously approved by LenderProject Costs; (jii) Copies of any Change Orders to Borrower, the General Contract not theretofore delivered to Architect and Lender, together ’s Consultant shall provide evidence that the Project is being constructed in accordance with a statement of any anticipated changes in any line item of Project Costs which could result in a future Change Orderthe Plans and Specifications and with applicable law; (kiii) Copies of any SubcontractsBorrower, or Change Orders to Subcontracts, not theretofore delivered to Lender the Architect and requested by Lender in Lender’s sole discretionConsultant shall provide evidence that the Construction Contracts are in full force and effect; and (liv) If Borrower, the advance of Loan Proceeds Architect and Lender’s Consultant shall provide evidence that the Project is being made concurrently completed in accordance with a disbursement of Borrower equity, all such disbursements have been approved and the funds to be advanced pursuant to such disbursements have been deposited into the Construction EscrowSchedule.

Documents Required for Each Construction Disbursement. At least ten (10) business days prior to, and as a condition of, each Construction Disbursement, (or at such other date as is expressly provided for herein) Borrower shall furnish to Lender, the Title Company and to the Lender Consultant the following documents covering such disbursement: (a) Borrower’s disbursement request (“Disbursement Request”) in the form of Exhibit C-2 C attached hereto. Each such Disbursement Request shall be deemed to be Borrower’s direction to Lender to disburse the funds requested by such Disbursement Request to be disbursed from the proceeds of the Loan in accordance with this Agreement; (b) A certificate as to completion and payment authorization in form reasonably approved by Lender, properly executed by the General Contractor or the Subcontractors seeking payment, the Architect and the Lender Consultant; (c) Owner’s and General Contractor’s sworn statements, and General Contractor’s and Subcontractors’ conditional partial or full waivers of lien, lien covering all work and/or materials for which disbursement is to be made to a date specified therein, and covering all work done on the Property, to a reasonably current datemade, otherwise paid for or to be paid for by Borrower or any other person, all in compliance with the mechanics’ lien laws of the State of Tennessee and with Texas (including without limitation Section 53.284 of the requirements of Lender and Texas Property Code) in form satisfactory to the Title Company (for issuance of interim title endorsements covering such disbursement), together with such invoices, contracts, Change Orders or other supporting data as Lender or the Title Company may reasonably require; (d) Endorsements to the Title Policy Policy, including, without limitation, a “Downdate Endorsement” to cover the amount and date of the Construction Disbursement (whether into escrow or otherwise) insuring that the Security Instrument is a first, prior and paramount lien on the Property subject only to Permitted Encumbrances (and to exceptions and objections in the usual form relating to the issuance of a mortgage title insurance policy, which by their nature cannot be waived or removed until the Final Construction Disbursement of the proceeds of the Loan), that nothing has intervened to affect the validity or priority of the Security Instrument, insuring against mechanics’ lien claims for work performed prior to the date covered by such continuation, and containing a mechanics’ lien interim certification to cover the amount of the Loan then disbursed (including the current Construction DisbursementDisbursement for the prior month); which endorsements may be delivered to Lender concurrently with the disbursement of the Loan Proceeds which are the subject of the endorsements; (e) A statement indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment; (f) Such other papers and documents as the Title Company may reasonably require for the issuance of endorsements to the Title Policy for each disbursement of Loan ProceedsConstruction Disbursement; (g) An updated Construction Schedule, including a statement from each of the General Contractor and the Architect that, in their best professional judgment, the Construction Schedule, as updated, is realistic subject to Force Majeure Events, and can be adhered to in completing the Project in accordance with the Plans; (h) A report from the Lender Consultant, in form and substance reasonable satisfactory to Lender; (i) An If applicable, an updated Draw Schedule, if the Borrower is requesting any modification to the Draw Schedule previously approved by Lender; (j) Copies of any Change Orders to the General Contract not theretofore delivered to Lender, together with a statement of any anticipated changes in any line item of Project Costs which could reasonably be anticipated to result in a future Change Order;; and (k) Copies of any Subcontracts, or Change Orders to Subcontracts, not theretofore delivered to Lender and requested by Lender in Lender’s sole discretion; and (l) If the advance of Loan Proceeds is being made concurrently with a disbursement of Borrower equity, all such disbursements have been approved and the funds to be advanced pursuant to such disbursements have been deposited into the Construction Escrow.

Documents Required for Each Construction Disbursement. At least ten (10) business days prior to, and as a condition of, each Construction Disbursement, (or at such other date as is expressly provided for herein) Borrower shall furnish to Lender, the Title Company Lender and to the Lender Consultant the following documents covering such disbursement: (a) Borrower’s disbursement request (“Disbursement Request”) in the form of Exhibit C-2 C attached hereto. Each such Disbursement Request shall be deemed to be Borrower’s direction to Lender to disburse the funds requested by such Disbursement Request to be disbursed from the proceeds of the Loan in accordance with this Agreement; (b) A certificate as to completion and payment authorization in form reasonably approved by Lender, properly executed by the General Contractor or the Subcontractors seeking payment, the Architect payment and the Lender ConsultantArchitect; (c) Owner’s and General Contractor’s sworn statements, and General Contractor’s and Subcontractors’ waivers of lien, covering all work and/or materials for which disbursement is to be made to a date specified therein, and covering all work done on the Property, to a reasonably current date, otherwise paid for or to be paid for by Borrower or any other person, all in compliance with the mechanics’ lien laws of the State of Tennessee and with the requirements of Lender and the Title Company (for issuance of interim title endorsements covering such disbursement), together with such invoices, contracts, Change Orders or other supporting data as Lender or the Title Company may require; (d) Endorsements to the Title Policy to cover the amount and date of the Construction Disbursement (whether into escrow or otherwise) insuring that the Security Instrument is a first, prior and paramount lien on the Property subject only to Permitted Encumbrances (and to exceptions and objections in the usual form relating to the issuance of a mortgage title insurance policy, which by their nature cannot be waived or removed until the Final Construction Disbursement of the proceeds of the Loan), that nothing has intervened to affect the validity or priority of the Security Instrument, insuring against mechanics’ lien claims for work performed prior to the date covered by such continuation, and containing a mechanics’ lien interim certification to cover the amount of the Loan then disbursed (including the current Construction Disbursement); which endorsements may be delivered to Lender concurrently with the disbursement of the Loan Proceeds which are the subject of the endorsements; (e) A statement indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment; (f) Such other papers and documents as the Title Company may require for the issuance of endorsements to the Title Policy for each disbursement of Loan Proceeds; (g) An if reasonably requested by Lender, an updated Construction Schedule, including a statement from each of the General Contractor and the Architect that, in their best professional judgment, the Construction Schedule, as updated, is realistic and can be adhered to in completing the Project in accordance with the Plans; (h) A report from the Lender Consultant, in form and substance reasonable satisfactory to Lender; (i) An an updated Draw Schedule, if the Borrower is requesting any modification to the Draw Schedule previously approved by Lender; (j) Copies of any Change Orders to the General Contract not theretofore delivered to Lender, together with a statement of any anticipated changes in any line item of Project Costs which could result in a future Change Order; (k) Copies of any Subcontracts, or Change Orders to Subcontracts, not theretofore delivered to Lender and requested by Lender in Lender’s sole discretion; and (l) If the advance of Loan Proceeds is being made concurrently with a disbursement of Borrower equity, all such disbursements have been approved and the funds to be advanced pursuant to such disbursements have been deposited into the Construction Escrowapproved.