Conditions Precedent to the Initial Loan Advance Clause Samples

Conditions Precedent to the Initial Loan Advance. Lender shall not be obligated to make the first advance of Loan proceeds hereunder with respect to any Lot or Unit (the “Initial Advance”) unless the following conditions have been satisfied with respect to such Unit: (a) The Note, the Deed of Trust (including any supplements or amendments thereto) and the other Financing Documents shall have been properly executed and delivered to Lender, the Deed of Trust (and any such supplements or amendments) shall be executed, acknowledged and recorded in the appropriate land records, and payment shall have been made for all recording costs in connection with the Deed of Trust (and any such supplements or amendments) and any other recorded Financing Documents and for any transfer or recordation taxes due under any federal, state or county law. (b) Lender shall have received a paid policy of title insurance (ALTA Standard Form “B” Loan Policy—Current Edition) or a valid and enforceable commitment to issue the same, together with such reinsurance agreements and direct access agreements as may be required by Lender, from a company or companies satisfactory to Lender in the amount of the Line of Credit and which may be endorsed or assigned to the successors and assigns of Lender without additional cost, insuring the lien of the Deed of Trust to be a valid first lien on the Property with affirmative mechanic’s lien coverage, free and clear of all defects, exceptions and encumbrances except such as Lender and its counsel shall have approved, and which otherwise complies with the applicable requirements of the Commitment. (c) Lender shall have received advice, in form and substance and from a source satisfactory to Lender, to the effect that a search of the applicable public records discloses no conditional sales contracts, chattel mortgages, leases of personalty, financing statements or title retention agreements filed or recorded against the Property except such as Lender shall have approved. (d) Lender shall have received all policies or certificates of insurance required by the terms of the Commitment and of the other Financing Documents to be in effect from a company or companies and in form and amount satisfactory to Lender, together with written evidence, in form and substance satisfactory to Lender, that all fees and premiums due on account thereof have been paid in full. (e) Lender shall have received a separate policy of flood insurance in the face amount of the Note or the maximum limit of coverage available with...

Conditions Precedent to the Initial Loan Advance. The obligation of the Bank to make the initial Loan Advance is subject to the conditions precedent that the Bank shall have received on or before the date thereof all the following in form and substance satisfactory to the Bank: (a) this Agreement, the Note, the Security Agreement and each of the Security Documents properly executed on behalf of Borrower and the other Persons specified therein; (b) Borrower shall have delivered such number of completed and undated letters-in-lieu of transfer or division orders as the Bank shall have requested; (c) certificates of insurance complying as to form and substance with the terms of Section 11(i) of the Mortgage; and (d) any other documents and instruments that the Bank shall have requested concerning the accuracy and validity of or compliance with any representation, warranty and covenant made by Borrower in this Agreement, the satisfaction of any conditions contained herein and any other matters pertaining hereto.