Construction Period Financing Clause Samples

Construction Period Financing. (i) All Loan proceeds to be disbursed as construction period funding shall be disbursed as set forth in the Development Agreement which shall be executed by Sponsor(s), Borrower, and by such other entities as may be required by the Department, as a condition to the initial disbursement. (ii) The Loan proceeds shall be released through the Department upon the Sponsor’s, or its assignee’s, submittal of the STD 204 (Payee Data Record) and the Request for Funds form, and upon Sponsor’s and Borrower’s satisfaction of all terms and conditions of this Agreement, the Development Agreement, and applicable Program Requirements. The Department reserves the right to retain 10 percent (10%) of the approved Loan proceeds pending receipt and acceptance of the cost audit and any remaining Loan closing checklist items.