Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows: (a) The Closing shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person prior to the Closing have been satisfied or performed. (b) Advances of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date. (c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ix) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself. (d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion. (e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion. (f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 2 contracts
Samples: Construction Loan Agreement (Bluerock Enhanced Multifamily Trust, Inc.), Construction Loan Agreement (Bluerock Enhanced Multifamily Trust, Inc.)
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person prior to the Closing have been satisfied or performed.
(b) Advances of Loan Proceeds for construction hard costs shall be based on a percentage the Architect’s certificate of completion basis work in place and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (viii) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (viiv) all Appraisal fees; (viiv) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all reasonable fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ixvi) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consentconsent in Lender’s sole discretion; provided that Lender shall not unreasonably withhold consent to amendments to the Approved Budget if (i) no Event of Default has occurred and is continuing, (ii) the Plans have not been modified except in accordance with Change Orders approved by Lender to the extent required pursuant to the terms hereof, and (iii) after giving effect to the proposed amendment to the Approved Budget and any Balancing Deposit to be made concurrently with the proposed modification, the Loan will remain In Balance. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; and (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and . Notwithstanding the foregoing, upon notice but without the prior approval of Lender, Borrower may reallocate cost savings in one line item of the Approved Budget to cover cost overruns in another line item, provided that (iiii) a Budget Reallocation Request reallocations of cost savings from any line item pursuant to this sentence shall not exceed, when aggregated with prior reallocations of cost savings from the same line item, ten percent (10%) of the budgeted amount for such line item in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” initially approved by Lender in connection with origination of the Loan, (ii) construction and not otherwise spent development of the Improvements is at least fifty percent (50%) complete as reasonably determined by Borrower Lender’s Consultant, (“Cost Savings”)iii) no such reallocation shall reduce a line item for interest, (iv) no such reallocation shall increase a line item associated with the Development Agreement or any other agreement with an Affiliate of Borrower, (v) no such reallocation shall reduce a line item for Operating Cash Flow to be paid to the General Contractor retained for purposes of funding Project Costs, and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower (vi) no Event of Default shall have occurred and be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completioncontinuing.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, upon notice to Lender shall not unreasonably withholdbut without the prior approval of Lender, condition or delay its consent to any reallocation of Borrower may reallocate funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project remaining to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in , based on the Approved Budget to complete most recent percentage of completion estimate provided by or approved by the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completionConsultant.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender, such consent not to be unreasonably withheld or delayed provided the Loan is In Balance and the construction is progressing in accordance with the Construction Schedule.
(g) If Borrower does not request or qualify for a Disbursement concurrently with Closing, then Lender and all other parties whose consent shall have the right, but not the obligation, to make a nominal Disbursement to Borrower at Closing with a view to ensuring the priority of the lien of the Deed of Trust over subsequent liens for labor or materials. If Lender elects to make such a nominal Disbursement, Borrower shall apply it to Project Costs. Such a nominal Disbursement shall not be regarded as the “first” Disbursement for purposes of Section 4.1(h). Nothing in this section shall be construed as an acknowledgement by Lender that such a Disbursement is required under any Project Agreementapplicable law to ensure the priority of the lien of the Deed of Trust over subsequent liens for labor or materials.
Appears in 1 contract
Samples: Construction Loan Agreement (Sentio Healthcare Properties Inc)
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing Loan Opening shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person parties prior to the Closing Loan Opening have been satisfied or performed. At the Loan Opening, Lender shall disburse funds necessary to pay any Loan Expenses then due.
(b) Advances If any disbursement of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be is made more than once per month. Loan Proceeds disbursed by Lender into an a third party escrow, including the Construction Escrow, those Loan Proceeds shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, Loan and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (viii) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (viiv) all Appraisal appraisal fees; (viiv) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viiivi) all reasonable fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ixvii) any amounts required to be paid by Borrower under this Agreement, the Security Instrument Deed of Trust or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as the “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 1 contract
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person prior to the Closing have been satisfied or performed.
(b) Advances of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrowany Retainage Escrow Account, shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement, if any; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Security Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Security Documents; and (ix) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Security Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds disbursed by Lender through the into a Construction Escrow, unless otherwise agreed by LenderDisbursement Account maintained with Lender for such purpose. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; and (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Approved Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of is adequate, in Lender’s opinion, for the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completioncompleted.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 1 contract
Samples: Construction Loan Agreement (CNL Growth Properties, Inc.)
Loan Disbursement. 1.1 Subject to the satisfaction of the terms and conditions herein containedcontained herein, the Borrower(s) hereby agrees to borrow and VWFPL agrees to lend to the Borrower(s) the loan amount specified in Annexure I ("Loan"). The Loan Proceeds shall, upon the request of the Borrower(s), be disbursed by VWFPL (a) either to the Borrower(s), or (b) to such manufacturer /dealer / person(s) as specified in Annexure I. The Loan amount shall be disbursed as follows:
to the Borrower(s) net of all initial payments towards Pre Monthly Instalment Interest, Advance Instalment, Documentation Charges, Loan Processing Charges, Loans for Insurance, Maintenance Pack, Extended Warranty (aif applicable). All Loans thus disbursed/paid by VWFPL to the manufacturer/dealer/owner /person(s) The Closing shall be made at such time as all deemed to be a Loan granted to and availed by the Borrower(s). If so required by VWFPL, the Borrower(s) shall acknowledge the receipt of the conditions disbursement of the Loan in the form and requirements manner as required by VWFPL.
1.2 Disbursements of this Agreement required the Loan shall be deemed to be performed made on the date the cheque (s) / pay order(s) / authorization(s) / demand draft(s)/ Real Time Gross Settlement (RTGS) / National Electronics Funds Transfer System (NEFT)/ Unified Payment Interface (UPI) instruction are issued / made by Borrower or any other Person prior to the Closing have been satisfied or performed.
(b) Advances of Loan Proceeds for construction hard costs shall be based VWFPL and not on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrowtheir actual receipt, and interest shall accrue on those Loan Proceeds from that dateif by credit, when credit is made by VWFPL.
(c1.3 The Borrower(s) Borrower hereby requests further acknowledges and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred confirms that any delivery order or instructions or confirmation given by Lender in connection with the Loan, including, but not limited to, (i) without limitation VWFPL to the establishment manufacturer / dealer / seller of the Interest ReserveProduct(s) of having approved the Loan and to deliver the Product(s) to the Borrower(s) shall, interest due on the Loanwhere VWFPL has provided credit or has some other financial arrangement with such manufacturer / dealer / seller and notwithstanding that no monies have actually been paid to such manufacturer / dealer / seller, also constitute and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any be deemed as a disbursement of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of that this Agreement or shall be fully and completely binding on (and strictly complied with by) the Borrower(s) upon such event also. Disbursement(s) made, at the Borrower(s) request / instructions and behalf to any person(s) shall be binding on them. The Borrower(s) shall be solely liable to bear any increase in the price of the Loan Documents; and (ixProduct(s) any amounts required to be paid by Borrower under this Agreement, and/or the Security Instrument or any Loan Document after costs of insurance or
1.4 registration of the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”Product(s). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower 1.5 VWFPL shall be entitled to draw on cancel or rescind the Borrower(s)’ order /booking of the Product(s) with the Manufacturer / dealer / seller and to collect the refund of the booking price or any other amounts directly from the Manufacturer / dealer / seller (after any deduction that may be made by manufacturer / dealer / seller) and adjust the same against any monies that may be due and payable by the Borrower(s) to VWFPL: (i) if within 7 days of the date of disbursement of the Loan for amounts shown on (a) the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”manufacturer/ dealer/ seller fails to deliver the Product(s) to the Borrower(s), or (b) the Borrower(s) fails to be paid take delivery of the Product(s), or (ii) if the Borrower(s) fails to provide VWFPL the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLCdocuments evidencing the payment of Borrower(s) contribution towards the purchase of the Product(s),or (iii) if within 30 days of the date of disbursement of the Loan the Product(s) is not available for any reason whatsoever. Borrower Any deficit which is not immediately made good by the Borrower(s) shall be entitled to draw for Cost Savings construed as set forth in the Construction Contract upon Construction Completionan Event of Default.
1.6 The Borrower(s) acknowledges and confirms that (ea) Lender shall not have any obligation to consent to any disbursement from fundsthis Agreement, regardless of source(b) the ‘Sanction Letter’, allocated in (c) the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.‘Loan Application’,
Appears in 1 contract
Samples: Loan Agreement
Loan Disbursement. 1.1 Subject to the satisfaction of the terms and conditions herein containedcontained herein, the Borrower(s) hereby agrees to borrow and VWFPL agrees to lend to the Borrower(s) the loan amount specified in Annexure I ("Loan"). The Loan Proceeds shall, upon the request of the Borrower(s), be I. The Loan amount shall be disbursed as follows:
to the Borrower(s) net of all initial payments towards Pre Monthly Instalment Interest, Advance Instalment, Documentation Charges, Loan Processing Charges, Premium for Insurance (aif applicable), Maintenance Pack Charges and Fees, Extended Warranty Charges and Fees. All Loans thus disbursed/paid by VWFPL to the manufacturer/dealer/owner /person(s) The Closing shall be made at such time as all deemed to be a Loan granted to and availed by the Borrower(s). If so required by VWFPL, the Borrower(s) shall acknowledge the receipt of the conditions disbursement of the Loan in the form and requirements manner as required by VWFPL.
1.2 Disbursements of this Agreement required the Loan shall be deemed to be performed made on the date the cheque(s) / pay order(s) / authorization(s) / demand draft(s)/ Real Time Gross Settlement (RTGS) / National Electronics Funds Transfer System (NEFT)/ Unified Payment Interface (UPI) instruction are issued / made by Borrower or any other Person prior to the Closing have been satisfied or performed.
(b) Advances of Loan Proceeds for construction hard costs shall be based VWFPL and not on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrowtheir actual receipt, and interest shall accrue on those Loan Proceeds from that dateif by credit, when credit is made by VWFPL.
(c1.3 The Borrower(s) Borrower hereby requests further acknowledges and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred confirms that any delivery order or instructions or confirmation given by Lender in connection with the Loan, including, but not limited to, (i) without limitation VWFPL to the establishment manufacturer / dealer / seller of the Interest ReserveProduct(s) of having approved the Loan and to deliver the Product(s) to the Borrower(s) shall, interest due on the Loanwhere VWFPL has provided credit or has some other financial arrangement with such manufacturer / dealer / seller and notwithstanding that no monies have actually been paid to such manufacturer / dealer / seller, also constitute and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any be deemed as a disbursement of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of that this Agreement or shall be fully and completely binding on (and strictly complied with by) the Borrower(s) upon such event also. Disbursement(s) made, at the Borrower(s) request / instructions and behalf to any person(s) shall be binding on them. The Borrower(s) shall be solely liable to bear any increase in the price of the Loan Documents; and (ixProduct(s) any amounts required to be paid by Borrower under this Agreement, and/or the Security Instrument or any Loan Document after costs of insurance or
1.4 registration of the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”Product(s). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower 1.5 VWFPL shall be entitled to draw on cancel or rescind the Borrower(s)’ order /booking of the Product(s) with the Manufacturer / dealer / seller and to collect the refund of the booking price or any other amounts directly from the Manufacturer / dealer / seller (after any deduction that may be made by manufacturer / dealer / seller) and adjust the same against any monies that may be due and payable by the Borrower(s) to VWFPL: (i) if within 7 days of the date of disbursement of the Loan for amounts shown on (a) the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”manufacturer/ dealer/ seller fails to deliver the Product(s) to the Borrower(s), or (b) the Borrower(s) fails to be paid take delivery of the Product(s), or (ii) if the Borrower(s) fails to provide VWFPL the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLCdocuments evidencing the payment of Borrower(s) contribution towards the purchase of the Product(s),or (iii) if within 30 days of the date of disbursement of the Loan the Product(s) is not available for any reason whatsoever. Borrower Any deficit which is not immediately made good by the Borrower(s) shall be entitled to draw for Cost Savings construed as set forth in the Construction Contract upon Construction Completionan Event of Default.
1.6 The Borrower(s) acknowledges and confirms that (ea) Lender shall not have any obligation to consent to any disbursement from fundsthis Agreement, regardless of source(b) the ‘Sanction Letter’, allocated in (c) the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.‘Loan Application’,
Appears in 1 contract
Samples: Loan Agreement
Loan Disbursement. (a) Subject to the satisfaction of the terms and conditions herein contained, the proceeds of the Note shall be disbursed at Closing as follows:
(i) Payment as per Estoppel to pay off the existing first mortgage and other debt on the Property;
(ii) $640,000.00 for the payment of Loan Proceeds Expenses and Lender Points (net of deposits previously made by Borrower) due as of the Closing Date;
(iii) $42,000.00 to pay Marketing Expenses;
(iv) $189,208.00 to repay advances by the Borrower to the Lender prior to the date hereof;
(v) $ to fund balances owed to prospective purchasers arising out of cancellations of sales; Page25
(vi) $675,000.00 for the payment of initial construction of prefabricated homes;
(vii) $ (the “Interest Reserve”) into an account at Lender’s selection (the “Interest Reserve Escrow”) to be released in accordance with Section 7.1 for the payment of interest under the Note; and
(viii) $ (the “Construction Costs Reserve”) into an account at Lender’s selection (the “Construction Costs Reserve Escrow”) to be released in accordance with Section 7.2 for payment of Construction Costs.
(b) Subject to the satisfaction of the terms and conditions herein contained, the balance of the proceeds of the Note shall be disbursed as follows:
(ai) The Closing shall be made at such time as all of As per approved Construction Draw Request form in Lender’s Approved format. Borrower must submit the conditions and requirements of this Agreement required to be performed by Borrower or any other Person prior to the Closing have been satisfied or performedDraw Request in Lender’s Approved format.
(bc) Advances of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds proceeds disbursed by Lender into an escrowescrow account, including the Interest Reserve Escrow and the Construction Costs Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that the such escrow, and interest shall accrue on those Loan Proceeds proceeds from that datethe date of such disbursement.
(cd) Borrower hereby requests and authorizes Lender to make advances disburse Loan proceeds directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ix) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 1 contract
Samples: Developmental Loan Agreement
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing Loan Opening shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person parties prior to the Closing Loan Opening have been satisfied or performed. At the Loan Opening, Lender shall disburse funds necessary to pay any Loan Expenses then due.
(b) Advances of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, Loan and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iviii) all fees and disbursements of appraisers, architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender ConsultantLender’s insurance consultant; (viv) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (viv) all Appraisal appraisal fees; (viivi) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viiivii) all reasonable fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ixviii) any amounts required to be paid by Borrower under this Agreement, the Security Instrument Mortgage or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(dc) No disbursement Borrower acknowledges that the Commitment Fee shall have been earned by Lender whether or not all or any portion of the Loan Proceeds shall have been disbursed, and shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs due and payable in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted full to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction CompletionOpening Date.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 1 contract
Samples: Loan Agreement (Cornerstone Growth & Income REIT, Inc.)
Loan Disbursement. Subject to the satisfaction Provided no Event of Default shall have occurred and be continuing, advances of proceeds of the terms and conditions herein contained, Loan are to be made by the Loan Proceeds shall be disbursed as followsParticipating Lenders under the following conditions:
(aA) The Closing At least ten (10) business days before the date on which an advance is requested to be made, the Borrower shall give notice to the Participating Lenders and/or their designees specifying the advances which will be desired from each of the Participating Lenders (the "Disbursement Request"). Each Disbursement Request shall consist of a summary request, in form acceptable to the Participating Lenders, accompanied by copies of bills, invoices or other satisfactory documentation of expenses incurred or owing for Eligible Project Costs in an amount equal to or exceeding the aggregate amount of the Disbursement Request and shall be made at consistent with the final approved Project Sources and Uses. Such Disbursement Request shall also be accompanied by a certificate of the Borrower in the form of the Requisition Certificate attached as Exhibit I hereto to the effect that the Borrower’s representations and warranties set forth in Section 4 below remain true, complete and correct, and such other documentation as the Participating Lenders may from time to time require to evidence the Borrower’s Disbursement Request. Each Participating Lender being requested to fund will promptly approve or disapprove the requested advance or notify the Borrower that further supporting documentation is required. Any Participating Lender, whether or not being requested to fund, will promptly notify all Participating Lenders of any objection to such Disbursement Request. Upon approval of a requested advance by a Participating Lender, such Participating Lender or its designee shall promptly make the requested advance. A Participating Lender may withhold its advance if another Participating Lender has objected to the Disbursement Request until such time as all objections by the Participating Lenders have been resolved; however, a Participating Lender may authorize disbursement of an advance notwithstanding any objection from other Participating Lenders.
(B) Requisitions for construction costs must be submitted on AIA forms or in another acceptable and pre-approved form; and a Participating Lender may require either an authorization from the conditions primary construction lender to disburse these costs or certification by a construction inspector reasonably acceptable to such Participating Lender that construction work is acceptable and requirements consistent with the Project Sources and Uses and the approved plans and specifications. A Participating Lender may require as a condition of this Agreement required any advance that the Borrower submit satisfactory evidence that (i) all funds scheduled to be performed by Borrower or any other Person advanced under the Project Sources and Uses prior to the Closing proceeds of the Loan have been satisfied or performedadvanced to the Borrower and expended in accordance with the Project Sources and Uses and (ii) the unadvanced portion of the Loan together with the unadvanced funds of all other funding sources shown in the Project Sources and Uses are sufficient to pay all costs for the completion of the Project in accordance with the approved plans and specifications. The construction contract for the Project shall require 10% retainage until 50% completion and 5% retainage thereafter.
(bC) Advances Prior to the funding of Loan Proceeds any requisition for construction hard costs costs, the Borrower shall obtain an endorsement to the Agent's title insurance policy insuring title through the date of funding.
(D) Loan proceeds shall be based on a percentage of completion basis and disbursed only for Eligible Project Costs.
(E) Requests for advances shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, Borrower until the funds are needed for payment of Eligible Project Costs and the amount of each request shall be considered limited to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that dateamount needed.
(cF) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement The final ten percent (10%) of all interest, charges, costs and expenses incurred by Lender in connection with the proceeds of the AHT Loan, includingDHCD HOME Loan and City HOME Loan, but and the final five percent (5%) or $5,000, whichever is greater, of the proceeds of the CBH Loan and HIF Loan shall not limited to, be advanced until such time as the Borrower (i) without limitation gives notice to the establishment of Participating Lenders that the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the LoanProject is substantially complete; (ii) delivers to all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements Participating Lenders a certificate of architects, engineers and consultants engaged by Borrower and Lender, including substantial completion from the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ix) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.architect;
Appears in 1 contract
Samples: Loan Agreement
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing shall be made at such time as all Administrative Agent must notify each Creditor no later than 2:00 pm, Panama time, of the conditions day on which it receives the Disbursement Request in question, the details of the Loan requested and requirements of this Agreement required the disburse portion that corresponds to be performed by Borrower or any other Person prior to the Closing have been satisfied or performedit.
(b) Advances The portion of each Loan Proceeds for construction hard costs shall be based that is disbursable to a Creditor is its Pro rata Share of such Loan on a percentage of completion basis and shall not be made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that dateDisbursement Date.
(c) Borrower hereby requests and authorizes Lender No Creditor is obliged to make advances directly to itself for payment and reimbursement participate in the Loan that is the subject of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, a Disbursement Request if:
(i) without limitation to Its participation in the establishment portion of the Interest Reserve, interest due on Loan that is the Loan, and any points, loan fees, service charges, commitment fees or other fees due to Lender subject of such Disbursement Request plus its participation in connection with the Loanprevious disbursements exceeds its Commitment; or
(ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any The portion of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ix) any amounts required subject to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a said Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through plus previous disbursements exceeds the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itselfTotal Commitments.
(d) No If the conditions precedent to disbursements established in this Contract are satisfied, once notified by the Administrative Agent to the Creditors through a written document, each Creditor must make available and liquid the funds corresponding to its portion of the Loan to the Administrative Agent no later than 10:00 am, Panama time, on the Disbursement Date. For its part, the Administrative Agent will transfer, to the extent possible, the funds corresponding to said disbursement to the account designated by the Debtor in the Disbursement Request, no later than 10:00 am, Panama time, the Disbursement Date, for the total amounts made available by the Creditors. Without prejudice to the foregoing, in the event that the Administrative Agent receives funds from some of the Creditors on the Disbursement Date, but after 10:00 am, Panama time (due, for example, to operational issues of correspondent banks or to internal procedures of the Administrative Agent), then the Administrative Agent may make up to two (2) more transfers to the account designated by the Debtor in the Disbursement Request, no later than 12:00 pm and 2:00 pm, Panama time, respectively, of the Disbursement Date, for the total of the available and liquid amounts at said hours, if any. If, upon arrival at 2:00 pm, Panama time, on the Disbursement Date there is a Creditor that has not effectively complied with the disbursement of Loan Proceeds shall its portion, the Administrative Agent will not be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment obliged to make available said prorated part of the Project Costs in strict accordance with disbursement corresponding to said Creditor and will transfer to the Approved Budget. No amendment Debtor only the sum of the Approved Budget shall be amounts made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid available to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in Administrative Agent by the Construction Contract upon Construction Completionrest of the Creditors.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in In the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided event that the Project has reached substantial completion.
(f) All Disbursements of funds to Administrative Agent and/or the Creditors reasonably determine that the Disbursement Requests do not comply with the requirements provided for in this Contract or that the conditions precedent for the benefit of the Projecteach disbursement, shall be made applicable in accordance with the Draw Scheduleestablished in the Contract, which shall the Creditors will refrain from making the requested disbursement, without responsibility on their part, and the Creditors must notify the Administrative Agent of said situation, if applicable, and the Administrative Agent to the Debtor, within a period not be modified without exceeding two (2) Business Days after receipt of the prior written consent Disbursement Request, without, in any case, understanding that the lack of Lender and all other parties whose consent is required under any Project Agreementnotification implies the obligation for the Creditors to disburse. The Debtor, after having been notified of said circumstance by the Administrative Agent, must submit a new Disbursement Request in compliance with the provisions of the Clause 5 of this Contract.
Appears in 1 contract
Samples: Syndicated Term Loan Contract (Cama Commercial Group, Corp.)
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing shall be made take place at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person parties prior to the Closing have been satisfied or performed; but in no event shall the Closing occur later than the Closing Date. At the Closing, Borrower shall provide to Lender funds necessary to pay any Loan Expenses then due, or Lender shall deduct such Loan Expenses from Borrower’s account with Lender.
(b) Advances If any disbursement of Loan Proceeds for construction hard costs shall be based on a percentage of completion basis and shall not be is made more than once per month. Loan Proceeds disbursed by Lender into an escrow, including the Construction Escrow, those Loan Proceeds shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself itself, or to deduct from Borrower’s account with Lender, for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the LoanLoan (to the extent not otherwise paid by Borrower), including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, Loan and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect and the Lender Consultant; (viii) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (viiv) all Appraisal appraisal fees; (viiv) all title, casualty, liability, payment, performance or other title insurance or bond premiums; (viiivi) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ixvii) any amounts required to be paid by Borrower under this Agreement, the Security Instrument Note, the Mortgage or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(d) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.
Appears in 1 contract
Samples: Loan and Security Agreement (Adcare Health Systems, Inc)
Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:
(a) The Closing Loan Opening shall be made at such time as all of the conditions and requirements of this Agreement required to be performed by Borrower or any other Person parties prior to the Closing Loan Opening have been satisfied or performed; but in no event shall the Loan Opening occur later than the Loan Opening Date. At the Loan Opening, Lender shall disburse funds necessary to pay any Loan Expenses then due.
(b) Advances The initial disbursement of Loan Proceeds for construction hard costs shall be based on a percentage limited to eighty (80%) percent of completion basis the acquisition cost of the Land and shall not related closing costs.
(c) All Construction Disbursements will be made more than once per month. in accordance with the provisions of this Article 6 and in the form of the Loan Advance Requisition attached hereto as Exhibit D.
(d) If any disbursement of Loan Proceeds disbursed is made by Lender into an escrow, including the Construction Escrow, those Loan Proceeds shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.
(ce) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment of the Interest Reserve, interest due on the Loan, Loan and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iviii) all fees and disbursements of architectsthe Architect, engineers Engineer and consultants engaged by Borrower and Lender, including the fees and disbursements of the Architect any architect, engineers, Lender’s Consultant and the Lender ConsultantLender’s insurance consultant; (viv) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (viv) all Appraisal appraisal fees; (viivi) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viiivii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ixviii) any amounts required to be paid by Borrower under this Agreement, the Security Instrument Mortgage or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.
(df) No disbursement of Loan Proceeds shall be made at any time that the Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Project Budget. No amendment of the Approved Project Budget greater than $50,000.00 shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”), to be paid to the General Contractor and Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.
(e) Lender shall not have any obligation to consent to any disbursement from funds, regardless of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingency” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion of the funds allocated to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.
(f) All Disbursements of funds to or for the benefit of the Project, shall be made in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreement.written
Appears in 1 contract
Loan Disbursement. The Loan shall accrue interest under and be subject to the terms of the Note. Subject to the satisfaction of the terms and conditions herein containedcontained in this Article 4, the Loan Proceeds Proceeds, or so much thereof as may be approved by Lender, shall be disbursed as followsupon satisfaction of each of the following conditions:
(a) The Closing Borrower shall be made at such time as request an Advance of all or a portion of the conditions and requirements Loan Amount, if at all, at least ten (10) Business Day before the Business Day on which Borrower desires to receive an Advance of this Agreement required to be performed by Borrower or any other Person prior to Loan Amount (the Closing have been satisfied or performed.“Notice Date”);
(b) Advances of Loan Proceeds Each request for construction hard costs Advance shall be based on made using the form attached hereto as Exhibit K (a percentage “Disbursement Request”). Each Disbursement Request shall constitute a certification by Borrower that the representations and warranties of completion basis Borrower set forth in the this Agreement and shall not be made more than once per month. the other Loan Proceeds disbursed by Lender into an escrowDocuments, including the Construction Escroware true, shall be considered to be disbursed to Borrower from correct and complete in all material respects as of the date of deposit into such request and that escrow, Borrower has satisfied each of the conditions precedent to the Advance set forth in this Agreement and interest shall accrue on those the other Loan Proceeds from that date.Documents;
(c) Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement No Event of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) without limitation to the establishment Default exists as of the Interest Reserve, interest due on the Loan, and any points, loan fees, service charges, commitment fees Notice Date or other fees due to Lender in connection with the Loan; (ii) all amounts due under any Rate Management Agreement; (iii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iv) all fees and disbursements of architects, engineers and consultants engaged by Borrower and Lender, including the fees and disbursements as of the Architect and the Lender Consultant; (v) all documentary stamp and other taxes and charges imposed by law on the issuance or recording date of disbursement of any portion of the Loan Documents; (vi) all Appraisal fees; (vii) all title, casualty, liability, payment, performance or other insurance or bond premiums; (viii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (ix) any amounts required to be paid by Borrower under this Agreement, the Security Instrument or any Loan Document after the occurrence of an Event of Default (all of which are herein collectively referred to as “Loan Expenses”). Notwithstanding the foregoing, any Loan Expenses included in a Disbursement Request (as hereinafter defined) and meeting all requirements for disbursement hereunder shall be paid through disbursement of funds by Lender through the Construction Escrow, unless otherwise agreed by Lender. Lender shall give Borrower written notice of any advances that Lender makes directly to itself.Amount;
(d) No disbursement of With respect to Loan Proceeds disbursed to Borrower for the purpose permitted in Section 2.10(a)(ii), in no event shall be made at any time that the Loan is not In Balance. Any disbursement aggregate amount of all Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Approved Budget. No amendment of the Approved Budget shall be made without Lender’s prior written consent. No reallocation of line items within the Approved Budget shall be made unless Borrower can demonstrate previously disbursed to Lender’s reasonable satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; (ii) no line items in the Approved Budget (other than the line item to which the reallocation is sought) are required, in Lender’s reasonable judgment, to be increased; and (iii) a Budget Reallocation Request in the from of Exhibit C-1 is submitted to Lender for approval. Borrower shall be entitled to draw on the Loan for amounts shown on the Approved Budget as “Hard Costs” and not otherwise spent by Borrower (“Cost Savings”)less amounts repaid by Borrower) and the proposed Advance exceed the Property Improvement Limit, to be paid to the General Contractor and irrespective of any amounts repaid by Borrower’s affiliate, Stonehenge 23Hundred JV Member, LLC. Borrower shall be entitled to draw for Cost Savings as set forth in the Construction Contract upon Construction Completion.;
(e) Lender In no event shall not have any obligation to consent to any disbursement from fundsthe Principal Balance and the amount of the proposed Advance, regardless exceed sixty percent (60%) of source, allocated in the Approved Budget to any “Contingency” line item, or to consent to any reallocation to any other line item of funds allocated in the Approved Budget to the “Contingencyas is” line item; provided, however, Lender shall not unreasonably withhold, condition or delay its consent to any reallocation of funds allocated to “Contingency” in the Approval Budget so long as, immediately following such reallocation, the undisbursed portion appraised value of the funds allocated Property determined by an Appraisal in form and substance acceptable to the “Contingency” line item, expressed as a percentage of the total funds allocated to the “Contingency” line item in the original Approved Budget, does not exceed that portion of the Project then remaining to be completed and paid for, expressed as a percentage of the total Project to be completed and paid for. If in Lender’s sole and absolute discretion it is determined that there are sufficient funds remaining in the Approved Budget to complete the Project on time and within budget, Lender may permit, in Lender’s sole discretion, the “Contingency” line item to be used to reimburse any increased equity contributed by Borrower, should any increased equity have been so contributed, under Section 4.4 below or otherwise, provided that the Project has reached substantial completion.; and
(f) All Disbursements Borrower shall make no more than four (4) requests for disbursement of funds to or for the benefit any portion of the Project, shall be made Loan Amount in accordance with the Draw Schedule, which shall not be modified without the prior written consent of Lender and all other parties whose consent is required under any Project Agreementgiven calendar month.
Appears in 1 contract
Samples: Revolving Credit Loan Agreement (Global Self Storage, Inc.)
