Examination of the use of Funds Sample Clauses

Examination of the use of Funds. After the loan fund is paid, the lender has the right to verify the use of the funds through on-site and off-site examination. The borrower shall submit to the lender a report about the use of funds and related expense receipts according to the lender’s request. The lender can check the use of the funds on site. The borrower shall cooperate and provide applicable materials. The lender’s examination includes the following: A. Whether the project capital and other matching funds are in place according to the contract; B. Whether the funds are used for other purpose, whether the capital is used in the areas prohibited by the state government; C. Whether the project progresses smoothly, whether there are major incidents, major equipment is in place in time, whether the construction period is extended; D. Whether the speed of project construction lags behind the spending of the capital; E. Whether the total investment is within the budget estimates; F. Other areas that the lender needs to examine. If the lender finds that the project will not be completed on time due to improper use of funds, it may require the borrower to make corrections within certain period of time.