Loan Commitment Use of Proceeds Clause Samples

Loan Commitment Use of Proceeds. (a) Loan Commitment; Determination of Advance Amounts. Lender hereby agrees, if Borrower has Performed all of the Obligations then due, to make Loan Advances to Borrower in accordance with the terms and conditions of this Agreement for the purposes specified in paragraph 2.1(a). The Acquisition Refinancing Component Advance shall be in an amount not to exceed the Maximum Acquisition Refinancing Component Amount. Subject to the provisions of paragraph 4.8, the amount of each Interest Reserve Advance shall be in the amount of interest then accrued and unpaid on the portion of the Loan for which payment of interest is allocated within the applicable Construction Budget. The amount of each Construction Work-Related Advance shall be equal to the costs of the work covered by the applicable Construction Work-Related Advance Request and allocated within the applicable Construction Budget for payment out of the Loan less an amount equal to the sum of (a) an amount ("Basic Retainage") equal to the percentage identified in the Schedule as the Basic Retainage Percentage times the hard costs of such work and (b) any additional retainage in excess of the amount of the Basic Retainage required under the applicable Construction Work Contract(s); provided, however, that Construction Work-Related Advances shall not be made for stored or ordered materials not yet incorporated into the Construction Improvements unless such materials are: (1) owned by the Borrower; (2) kept in a secured, insured and covered facility; and (3) certified as to the foregoing by Lender's Inspector. The Basic Retainage for a Construction Work Phase shall be disbursed at the time of Substantial Completion of the Construction Work Phase to the extent Construction Work Contractor(s) are then entitled to it under the applicable Construction Work Contract(s) between Borrower and such Construction Work Contractor(s), subject to Lender's right to keep such portion of such Basic Retainage as it may reasonably determine to be necessary to ensure Completion of the Construction Work Phase. Lender shall have no obligation to make any Construction Work-Related Advance with respect to a Construction Work Phase if, after giving effect to such Advance, the cost of Completion of the Construction Work Phase exceeds the sum of (i) remaining undisbursed balance of the Construction Component allocated to the Construction Work Phase and (ii) all Required Completion Assurance Deposits (Construction) held with respect to s...