Construction Component Clause Samples

Construction Component. The County is not obligated to make a disbursement of the Construction Component, or to take any other action under the Loan Documents unless the following conditions precedent are satisfied: (1) All requirements set forth in Section 2.6(a) have been and continue to be satisfied and there exists no Event of Default nor any act, failure, omission or condition that would constitute an Event of Default under this Agreement; (2) The County has received a copy of the General Contractor's Construction Contract as required pursuant to Section 3.3 below; (3) The County has received and approved the labor and material (payment) bonds as required pursuant to Section 3.5 below; (4) Borrower has executed a Partnership Agreement approved by the County, with the Investor Limited Partner, in which the tax credit equity investor is obligated to provide Borrower the Tax Credit Investor Equity; (5) Borrower has closed, or is concurrently closing, on the Construction Loan and is eligible to receive the proceeds of all construction loans and has received the amount of Tax Credit Investor Equity stated as the a first installment in the Partnership Agreement (estimated to be approximately Three Million Four Hundred Thousand Dollars ($3,400,000); (6) Borrower has obtained all permits and approvals necessary for the construction of the Development, as required by Section 3.2, provided however the Borrower may satisfy this requirement with regards to the building permit, if the Borrower provides the County with a permit ready letter from the City Building Department; (7) Borrower has submitted a certification from the architect certifying that the plans and specifications and design documents for the Development ensure that the Units are in compliance with Section 3.8(g) of this Agreement; (8) The County has received reasonable evidence that the local match requirements set forth in 24 C.F.R. Section 92.218 et seq., have been satisfied pursuant to Section 5.1 of this Agreement; (9) There exists no Event of Default nor any act, failure, omission or condition that would constitute an Event of Default under this Agreement; (10) The County has received a written draw request from Borrower, including (1) certification that the conditions set forth in Section 2.6(a) continue to be satisfied,

Construction Component of the Sub-Loan Agreement is hereby deleted in its entirety and replaced and superseded by the following:

Construction Component. Provided that this Agreement has not been terminated, and the Predevelopment Component has not been forgiven, as set forth in Section 2.7, Borrower shall secure its obligation to repay the Loan (inclusive of the Predevelopment Component and Construction Component), as evidenced by the County Note, by executing the Deed of Trust, and recording it as a lien against the Property.