Periodic Disbursement of Construction Costs Sample Clauses

Periodic Disbursement of Construction Costs. Lender may in its discretion withhold from Disbursements any amounts on account of retainage under the Construction Contract that Owner is not then required to disburse to Contractor.

Periodic Disbursement of Construction Costs. As construction progresses, the portion of the Disbursement Budget initially totaling $125,000.00 shall be periodically disbursed to or for the benefit or account of Borrower for the Construction Costs Item as follows: Lender shall disburse 100% of each disbursement request submitted by Borrower for Construction Costs Items provided that the disbursement requests reflect (in Lender’s reasonable determination) that Borrower is withholding 10% of the sums due to the applicable subcontractor as retainage. Upon a subcontractor’s completion of all work required of such subcontractor in its applicable subcontract, Lender’s receipt and review of evidence of the full completion of the work required of such subcontractor under the applicable subcontract (including without limitation, a conditional lien waiver executed and sworn to by such subcontractor) and evidence of the subcontractor’s satisfaction of all other terms and provisions of the subcontract, Lender may disburse to or for the benefit or account of Borrower the retainage withheld by Borrower for such work, subject to the maximum disbursement limitation contained in the following sentence. Lender shall only be obligated to disburse up to ninety-five percent (95%) of the maximum amount allocated for Construction Cost Items, less prior disbursements, pursuant to this paragraph 3 (unless otherwise approved by Lender), and the remaining five percent (5%) (“Retention”) shall be disbursed to or for the benefit or account of the Borrower upon the later to occur of (i) thirty (30) days after the filing of the Affidavit of Completion herein contemplated if same is filed within ten (10) days after completion of construction of the Improvements in accordance with the Plans and Specifications and governmental requirements, or (ii) if such Affidavit of Completion is not filed within ten (10) days after completion of construction of the Improvements in accordance with the Plans and Specifications and governmental requirements, then upon the date of filing such Affidavit of Completion. Notwithstanding the foregoing, upon Borrower’s request and Lender’s approval thereof, Lender may, at its option, disburse 100% of the disbursement request for the final 50% of the work required under a subcontract without requiring evidence of Borrower’s withholding of retainage for such work, provided retainage has been withheld by Borrower for the first 50% of the work required under the subcontract.