Stored Materials; Deposits. 2.12.1 Agent shall permit disbursements from the Loan for on-site and off-site storage of materials to be used and incorporated in the construction of the Projects ("Stored Materials"), provided that all of the following conditions are satisfied:
(a) the Stored Materials are owned by Borrower and are specifically identified to Agent;
(b) Agent will hold a perfected first priority security interest in the Stored Materials for the benefit of the Lenders;
(c) the Stored Materials are insured under the Builder's Risk Insurance Policy required under Section 8 of the Security Instruments or such other policies as may be necessary in order to fully insure such on-site and off-site materials for full replacement value; and
(d) all Stored Materials stored off-site shall be segregated and held in insured warehouses and Borrower shall provide Agent with a UCC financing statement or such other assurances as Agent may request regarding such Stored Materials which grants Agent, for the benefit of the Lenders, a first priority security interest in all such off-site Stored Materials.
2.12.2 Agent and Lenders shall also permit disbursement from the Loan for deposits required in connection with furniture, landscaping and art work for the Projects, if paid to a reputable supplier with normal safeguards made by Borrower for such deposits.
Stored Materials; Deposits. The Lenders shall not be required to make any Advance for any materials, machinery or other personal property not yet incorporated into the Improvements (the “Stored Materials”), unless the following conditions are satisfied:
(a) Borrower shall deliver to Administrative Agent bills of sale or other evidence reasonably satisfactory to Administrative Agent of the cost of, and, subject to the payment therefor, Borrower’s, Operator’s or Facility Lessee’s title in and to such Stored Materials;
(b) The Stored Materials are identified to the Facility and Borrower, Operator or Facility Lessee, are segregated so as to adequately give notice to all third parties of Borrower’s, Operator’s or Facility Lessee’s title in and to such materials, and are components in substantially final form ready for incorporation into the Improvements;
(c) The Stored Materials are stored at the Facility or at such other third-party owned and operated site as are bonded, as Administrative Agent shall reasonably approve, and are protected against theft and damage in a manner satisfactory to Administrative Agent;
(d) The Stored Materials will be paid for in full with the funds to be disbursed, and all lien rights or claims of the supplier will be released upon full payment;
(e) Collateral Agent for the benefit of the Secured Parties has or will have upon payment with disbursed funds a perfected, first priority security interest in the Stored Materials;
(f) The Stored Materials are insured for an amount equal to their replacement costs in accordance with Section 7.01 of this Agreement;
Stored Materials; Deposits. (1) Lender shall advance the proceeds of Building Loans with respect to materials and equipment that are included in the Budget and are not yet incorporated into the Improvements as of the date of the applicable Building Loans, but are temporarily stored at the Project so long as Lender shall have received the following items, each in form and substance reasonably satisfactory to Lender:
(a) evidence that Borrower has an obligation under the applicable contract, subcontract or purchase order to pay for such materials and equipment prior to their installation;
(b) evidence that the ownership of such materials and equipment is vested in Borrower free of any liens and claims of third parties, including, without limitation, bills of sale and conditional lien waivers from the respective Contractor and that such material and equipment are clearly marked to indicate the ownership thereof by Borrower;
(c) evidence that such stored materials are included within the coverages of insurance policies carried by Borrower or proof of other insurance (which shall include a standard mortgagee endorsement or its equivalent to the extent available) which has been reasonably approved by Lender;
(d) evidence acceptable to Lender, and at the Lender’s option, the Construction Consultant, that the stored materials are reasonably protected against vandalism (casualty), theft or damage;
(e) evidence that Building Loans for said materials do not, at any one time, exceed, in the aggregate, $250,000, inclusive of the amount requested;
(f) evidence that Lender has a perfected first security interest in such material prior to or simultaneous with the making of such Building Loans; ny-1258903 8
(g) evidence reasonably acceptable to Lender, and at Lender’s option the Construction Consultant, as to the identity, quality and quantity of same; and
(h) evidence that all other applicable requirements and conditions with respect to such advance of Building Loan proceeds have been satisfied.
(2) Unless otherwise approved by Lender, Lender shall not be required to make any Building Loans with respect to any materials or equipment unless and until such materials and equipment are delivered to the Project. Any determination by Lender of whether to make any Building Loans for materials, equipment or parts that are included in the Budget but are temporarily stored at sites other than the Project, shall be conditioned upon, among other things:
(a) satisfaction of the requirements set forth in Section ...
Stored Materials; Deposits. 27 2.13 Equity........................................................................................ 28 ARTICLE 3
Stored Materials; Deposits
