Unused Advance Fee Clause Samples

Unused Advance Fee. Unless Borrowers shall send a Relinquishment Notice in accordance with the terms hereof or a Deemed Relinquishment shall occur in accordance with the terms hereof, on each Payment Date Borrowers shall pay the following fee to Lender (whichever of the following applies at any given time, the “Unused Advance Fee”): (a) on each Payment Date commencing with the Closing Date and ending with the Payment Date on which the Initial Construction Loan Advance is advanced or the next Payment Date if the Initial Construction Loan Advance is advanced on a day other than a Payment Date, Borrowers shall pay to Lender a fee equal to the product of (i) one-fifth of one percent (0.20)% per annum multiplied by (ii) the then applicable Construction Loan Amount; and (b) on each Payment Date thereafter, Borrowers shall pay to Lender a fee equal to the product of (i) one-quarter of one percent (0.25%) per annum multiplied by (ii) the difference between (A) the then applicable Construction Loan Amount less (B) the aggregate amount of all Construction Loan Advances actually advanced as of such Payment Date (excluding any Construction Loan Advances made out of the Construction Loan Reserve Account). In the event Borrowers deliver a Relinquishment Notice in accordance with the terms hereof or a Deemed Relinquishment shall occur in accordance with the terms hereof, Borrowers shall continue to pay to Lender the Unused Advance Fee accrued through the Relinquishment Effective Date. The Unused Advance Fee shall be payable on the basis of the applicable annual rate set forth above and shall be calculated by multiplying (1) the actual number of days elapsed in the period for which the calculation is being made by (2) a daily rate based on a three hundred sixty (360) day year by (3) the amount set forth in the foregoing clause (a)(ii) or (b)(ii), as applicable.