Development Loan Commitment Clause Samples

Development Loan Commitment. Determination of Development Loan Advance Amounts; Retainage. Lender hereby agrees, if Borrower has Performed all the Obligations then due, to make Development Loan Advances. Subject to the provisions of paragraph 4.4, the amount of each Interest Reserve Advance shall be in the amount of interest then accrued and unpaid on the Development Loan. The amount of each Work-Related Advance shall be an amount equal to the costs of the Work covered by the applicable Work-Related Advance Request and allocated within the relevant Construction Budget for payment out of the Development Loan less an amount equal to the sum of (a) ten percent (10%) of the costs of such Work ("Basic Retainage") and (b) any additional retainage ("Additional Retainage") required under the Construction Contract(s); provided, however, that Work-Related Advances shall be made for stored or ordered materials not yet incorporated into the Improvements only upon terms and conditions set forth in EXHIBIT R. The Basic Retainage shall apply to all "hard" costs of the Work but not to "soft" costs of the Work, and in no event shall the Basic Retainage apply to the costs of furniture and furnishings. The Additional Retainage shall be disbursed as part of the next Advance occurring after Lender has reasonably determined that a Contractor is entitled to it under the applicable Construction Contract. The Basic Retainage for each Work Component shall be disbursed at the time of Substantial Completion (as that term is defined in AIA Document A201, 1987 edition) of that Work Component to