Final Construction Holdback Advances Clause Samples
The 'Final Construction Holdback Advances' clause defines the process and conditions under which the last portion of funds retained during a construction project—known as the holdback—will be released to the contractor or builder. Typically, this clause outlines the requirements that must be met before the final payment is made, such as completion of all work, submission of necessary documentation, and the expiration of any lien periods. Its core practical function is to protect the project owner from potential claims or defects by ensuring that all contractual obligations are fulfilled before the final payment is disbursed.
Final Construction Holdback Advances. Subject to the provisions of ------------------------------------ the Loan Documents, and so long as Borrower is not in default in the due, prompt and complete performance or observance of any of the conditions, covenants, or obligations applicable to Borrower contained in the Loan Documents, a disbursement of the Loan proceeds totaling ten percent (10%) of the amount of the Construction Contract, comprising the Contractor's final draw request thereunder, will be disbursed upon the satisfaction of the following: (a) the Improvements shall have been completed in accordance with the terms of this Note (including, without limitation, the disbursement conditions set forth in subparagraph (iii) above) and the Loan Agreement, and (b) Borrower shall have ------------------ delivered or caused to be delivered to Lender (i) unconditional lien releases covering all Construction Holdback Advances previously delivered to or on account of Borrower together with conditional lien releases covering the final Construction Holdback Advance, (ii) such additional title insurance with endorsements thereto as Lender may require, with a liability limit of not less than the Loan Amount, issued by the Title Insurer, with coverage and in form satisfactory to Lender, insuring Lender's interest under the Deed of Trust as a valid lien on the Project, excepting only such items as shall have been approved in writing by lender and providing affirmative insurance therein against mechanics' liens, materialmen's liens or claims or liens in the nature thereof on account of any construction of the Improvements, (iii) a certificate of occupancy acceptable to Lender covering the improvements, and (iv) the Architect's written certification that the Improvements have been completed in accordance with the Plans therefor, that all utility connections for the Improvements have been completed and the Improvements are otherwise fully operational and fully ready for occupancy and use.
Final Construction Holdback Advances. Subject to the provisions ------------------------------------ of the Loan Documents, and so long as there is no Potential Default or Event of Default, a disbursement of the Loan proceeds totaling 10.00% of the amount of the Construction Contract, comprising the Contractor's final draw request thereunder, will be disbursed upon the satisfaction of the following: (a) the Greenhouse shall have been completed substantially in accordance with the terms of the Work Letter, and (b) Lender shall have received or waived the receipt of (i) unconditional lien releases covering all previously disbursed Construction Holdback Advances together with conditional lien releases covering the final Construction Holdback Advance, (ii) a 55 certificate of occupancy acceptable to Lender covering the Greenhouse, and (iii) the Architect's written certification that the Greenhouse has been completed substantially in accordance with the Plans therefor, that all utility connections for the Greenhouse have been completed, and that the Greenhouse is otherwise fully operational and fully ready for the occupancy and use contemplated in the Lease. EXHIBIT A-1 DESCRIPTION OF SITE ------------------- Being a particular tract or tracts of land located in Durham County, Triangle Township, Research Triangle Park, North Carolina and being further described below: BEGINNING at a point, said point being located the following courses from NC Geodetic Monument "Triad", said NC Geodetic Monument bearing NC Grid Coordinates NAD 83 of N:238,772.801 Meters, E:620,488.448 Meters; Thence from said monument, South 01(degree)34'26" West a ground distance of 3,011.37 feet to an existing R/W Monument set in the westerly right-of-way of ▇.▇. ▇▇▇▇▇▇▇▇▇ Drive; Thence with said right-of-way along a curve to the right having a radius of 2846.41 feet, an arc length of 153.75 feet and being subtended by a chord bearing and distance of South 02(degree)43'15" West, 153.73 feet to an existing concrete R/W Monument set in the westerly right-of-way of ▇.▇. ▇▇▇▇▇▇▇▇▇ Drive; Thence leaving said right-of-way, North 87(degree)20'44" West a distance of 142.69 feet to a point, said point being the POINT AND PLACE OF BEGINNING. Thence, from the POINT AND PLACE OF BEGINNING South 02(degree)44'10" West a distance of 100.85 feet to a point; Thence, North 89(degree)49'25" West a distance of 85.25 feet to a point; Thence, South 02(degree)33'01" West a distance of 80.34 feet to a point; Thence, North 89(degree)49'25" West a distanc...