Construction Financing In Balance Clause Samples

Construction Financing In Balance. At the time of each draw, construction of the Improvements and the financing thereof are "in balance" whenever the amount of the undisbursed Construction Funds are sufficient in WNC's reasonable judgment to pay all of the following sums: all costs of construction to achieve a lien free completion of construction; all costs of marketing, ownership, maintenance and leasing of the apartment units; and all interest and all other sums accruing or payable under the Construction Loan. (a) Borrower acknowledges that the Construction Financing may become "out of balance" in numerous ways, not all of which can be stated herein. Borrower further acknowledges that the Construction Funds may become "out of balance" from a shortage of funds in any single line item or category of the cost breakdown, even if there are undisbursed Construction Funds in other line items or categories. Undisbursed Construction Funds in one category or line item may not be applied to another category or line item unless either the cost breakdown allows such use (and only to the extent specifically allowed) or WNC consents in writing to such use in each instance. Undisbursed Construction Funds in the category of contractor's contingency/construction cost contingency may be used to balance any "out of balance" line item which has been completed or may be used to balance another "out of balance" line item with the approval of Borrower, Lender and WNC. In addition, a surplus in any line item which has been completed may be used to balance another "out of balance" line item with the approval of Borrower, Lender and WNC. (b) Whenever the Construction Funds are "out of balance," WNC and/or Lender may make written demand on the General Partner to deposit the General Partner's own funds into the Construction Account in an amount sufficient in WNC's reasonable judgment to cause the Construction Funds to be `in balance." General Partner must deposit immediately all funds required by Lender and/or WNC. Also, if required by Lender and/or WNC, Borrower must submit, for Lender and/or WNC's approval, a revised cost breakdown within 15 days after any such demand. (c) At any time, WNC or Lender may evaluate the sufficiency of undisbursed Construction Funds allocated for payment of future interest, exercising its reasonable judgment in light of: cost overruns or change orders; and failure of the Improvements to be completed or leased as projected by Borrower. Based on Lender's and/or WNC's evaluation of these d...