Common use of Draw Requests Clause in Contracts

Draw Requests. Concurrently with submission to any lender(s) of any draw request for funding of any construction costs relating to the Project (including all Draw Request submissions to the Construction Lender), Borrower shall submit such draw request and all supporting documentation customarily required with respect to such request to the City. The City shall be invited to attend all Draw Request meetings with respect to the Construction Loan. The City’s approval shall be required for any draw request with respect to the City Loan, and Borrower shall not proceed with any such draw request for City Loan proceeds until City’s approval has been obtained; provided that, if the City fails to respond to such request for approval within ten (10) Business Days after the City’s receipt of such request, provided that all required supporting documentation has been provided to the City, then such draw request shall be deemed to have been approved by the City. The City shall be permitted to withhold approval on future draw requests as a result of an uncured default in connection with a previously approved or disapproved draw request or any portion thereof. If, commencing upon the date which is forty five (45) days after receipt of written notice of a default hereunder, unless (a) the City has agreed, in writing signed by the City Representative, on the amount of a holdback from such draw request necessary to address such default, or (b) Borrower has cured or commenced to cure such default to the reasonable satisfaction of the City Representative, Borrower agrees that it shall not submit further construction draw requests to any lender. The City agrees that, prior to the completion of construction, it shall provide Construction Lender with written notice of default hereunder concurrently with such notice being provided to City. The foregoing provisions in this Section 2.7 relating to Draw Requests shall be superseded by any Disbursement Agreement that governs such matters, or if the City, in its sole and absolute discretion, elects to rely on the County for approval of Draw Requests.

Draw Requests. Concurrently with submission HEB may draw upon the Escrowed Funds on a monthly basis to any lender(soffset the costs of designing, permitting and constructing the Project. HEB shall prepare all monthly Draw Requests (herein so called) to include (a) a certificate executed by an officer of any draw request HEB detailing the Costs incurred by HEB during the payment period (the “Draw Amount”), and (b) invoices or other reasonable backup for funding the Costs incurred by HEB during the payment period (including a certificate executed by a licensed engineer or architect that (1) shows the percentages and value of any construction costs relating to work completed on the Project during the payment period, (including 2) states that all Draw Request submissions to portions of the Construction Lender)Project for which payment is requested have been completed in accordance with the Plans, Borrower shall submit such draw request and (3) certifies that all supporting documentation customarily required labor, materials and other items with respect to such request that portion of the Project for which payment is requested have been paid in full). HEB shall submit all Draw Requests to the CityCity for review and approval. The City shall be invited to attend all will take final action on each Draw Request meetings with respect within five (5) business days after its receipt of the same, and, if approved (which approval shall not be unreasonably withheld), deliver the Draw Request to Escrow Agent. If the Construction LoanCity reasonably objects to any Draw Request, it will notify HEB and Escrow Agent within five (5) business days after its receipt of the same and will then use good faith, diligent efforts to resolve its objection within three (3) business days after such notification. The If the City’s approval shall be required for any draw request with respect to objection is not resolved within eight (8) business days after the City’s initial receipt of the Draw Request, the City Loanshall immediately forward the uncontested portion of the Draw Request to HEB and Escrow Agent as the Draw Amount for payment, and Borrower thereafter the City and HEB will work to reach agreement on the disposition of the contested amount. Any fully or partially approved Draw Request forwarded by the City to Escrow Agent shall not proceed with any such draw request for City Loan proceeds until City’s approval has been obtained; provided that, if constitute an “Approved Draw Request”. If the City fails to timely object to, accept, forward or otherwise respond to a Draw Request as herein required, then HEB may immediately deliver such request for approval within ten Draw Request to Escrow Agent along with HEB’s true and correct affidavit stating that the City has failed to timely respond to the Draw Request, and such Draw Request and affidavit shall also constitute an Approved Draw Request. Within two (102) Business Days days after the date Escrow Agent receives an Approved Draw Request from the City or HEB (HEB’s Approved Draw Request to consist of a Draw Request accompanied by HEB’s true and correct affidavit stating that the City has failed to timely respond such Draw Request in accordance with the terms of this paragraph), Escrow Agent shall disburse the Draw Amount to HEB. Notwithstanding anything to the contrary contained herein regarding the calculation of the City Share, HEB may draw down on the full amount of the Escrowed Funds in the manner herein provided in order to facilitate the construction of the Project; provided, however, upon completion and acceptance by the City of the Project, the parties shall (A) determine the total Costs, and (B) calculate the City’s receipt Share of such requestthe Costs (i.e., provided the lesser of 57½ % of the Costs or $________), and if the parties determine that all required supporting documentation has been provided to the City’s Share of the Costs is less than $___________, then such draw request HEB shall be deemed to have been approved by promptly reimburse the City for the difference between $___________ and the City. The City shall be permitted to withhold approval on future draw requests as a result of an uncured default in connection with a previously approved or disapproved draw request or any portion thereof. If, commencing upon the date which is forty five (45) days after receipt of written notice of a default hereunder, unless (a) the City has agreed, in writing signed by the City Representative, on the amount of a holdback from such draw request necessary to address such default, or (b) Borrower has cured or commenced to cure such default to the reasonable satisfaction ’s Share of the City Representative, Borrower agrees that it shall not submit further construction draw requests to any lender. The City agrees that, prior to the completion of construction, it shall provide Construction Lender with written notice of default hereunder concurrently with such notice being provided to City. The foregoing provisions in this Section 2.7 relating to Draw Requests shall be superseded by any Disbursement Agreement that governs such matters, or if the City, in its sole and absolute discretion, elects to rely on the County for approval of Draw RequestsCosts.

Draw Requests. Concurrently with submission Before Lender becomes obligated to make any lender(s) of any draw disbursement, it must receive a written request for funding of any construction costs relating to signed by Borrower using the Project form attached hereto as EXHIBIT Q (including all "DRAW REQUEST"), which Draw Request submissions to the Construction Lender), Borrower shall submit such draw request and all supporting documentation customarily required with respect to such request to the City. The City shall be invited sent to attend all Lender at the address set forth in Section 8.3 hereof, accompanied by such documentation and information set forth in Sections 2.1(a) and (b) above, and Section 2.1(c) in the case of the final disbursement, or as otherwise requested by Lender. All such documentation and information must be acceptable in form and substance to Lender in the exercise of its reasonable judgment. In the event the Draw Request meetings with respect is so approved, Lender shall disburse directly to the Construction Loan. The City’s approval shall be required for any draw request with respect Borrower (or directly to the City Loan, and General Contractor if Borrower shall not proceed with any so requests) such draw request for City Loan proceeds until City’s approval has been obtained; provided that, if the City fails funds equal to respond to such request for approval within ten (10) Business Days after the City’s receipt of such request, provided that all required supporting documentation has been provided to the City, then such draw request shall be deemed to have been approved by the City. The City shall be permitted to withhold approval on future draw requests as a result of an uncured default in connection with a previously approved or disapproved draw request or any portion thereof. If, commencing upon the date which is forty five (45) days after receipt of written notice of a default hereunder, unless (a) the City has agreedsum due pursuant to the Draw Request, to the extent that such sum is in the Budget (or a modification thereof which is approved in writing by Lender, in writing signed by accordance with the City Representativereasonability standard set forth above), on the amount of a holdback from such draw request necessary to address such default, or less (b) Borrower has cured or commenced ten percent (10%) thereof to cure be retained by Lender until final payment shall be due and owing, provided, however, that subsequent to completion of fifty percent (50%) of the value of the Improvements, if in Lender's and Borrower's judgement, the Improvements are satisfactorily progressing and such default progress continues, the future retainage shall be reduced to five percent (5%); provided, however that if at any time thereafter, in Lender's reasonable judgment, the Improvements are no longer satisfactorily progressing, the retainage will, from and after the next disbursement after notice thereof from Lender setting forth the reasons for its determination, unless satisfactory progress is subsequently restored, be ten percent (10%); provided, however, that if a Draw Request shall have been submitted prior to Borrower's receipt of such notice, then the increase in retainage will be postponed until the following disbursement. Notwithstanding the foregoing, if such disbursement would cause the total amount disbursed under the Loan, including accrued interest thereon, to exceed the Maximum Loan Amount, Lender shall only disburse such amount that, when added to the reasonable satisfaction total amount of the City RepresentativeLoan previously disbursed and all interest accrued but unpaid, will increase the Loan balance to equal the Maximum Loan Amount. Despite any other provisions of this or any other Loan Documents, Borrower agrees that it shall not may submit further construction draw requests to any lender. The City agrees that, prior to the completion of construction, it shall provide Construction Lender with written notice of default hereunder concurrently with such notice being provided to City. The foregoing provisions in this Section 2.7 relating to Draw Requests shall be superseded by any Disbursement Agreement that governs such mattersto Lender no more frequently than once each month, or if the City, unless Lender has given its prior written consent in its sole and absolute discretion, elects to rely on the County for approval of Draw Requestseach instance.

Draw Requests. Project Administrator or Replacement Project Administrator may make Draw Requests for the Municipal Improvements pursuant to the terms of the DA, and upon the following additional conditions: (a) Concurrently with submission the submittal of a Draw Request to any lender(s) of any draw request for funding of any construction costs relating Escrow Agent and Simon, the Project Administrator or Replacement Project Administrator shall submit the Draw Request to the Project (including all Town Engineer of Marana, which Draw Request submissions will include lien waivers and invoices as set forth in the DA. Following receipt of the Draw Request, the Town Engineer shall inspect the work to determine whether the Construction Lender)Municipal Improvements have been constructed in accordance with the Town’s Standards, Borrower and shall submit such draw request and all supporting documentation customarily required with respect to such request to the City. The City shall be invited to attend all either approve or disapprove each Draw Request meetings with respect by written notice to Escrow Agent, Project Administrator or Replacement Project Administrator and the Construction Loan. The City’s approval shall be required for any draw request with respect to the City Loan, and Borrower shall not proceed with any such draw request for City Loan proceeds until City’s approval has been obtained; provided that, if the City fails to respond to such request for approval Owners within ten (10) Business Days days after the City’s receipt of such request, provided that all required supporting documentation has been provided to the City, then such draw request shall be deemed to have been approved by the Cityreceipt. The City approval of Draw Requests submitted in accordance with the provisions herein shall not be permitted to withhold approval on future draw requests as a result of an uncured default in connection with a previously approved or disapproved draw request or any portion thereof. If, commencing upon the date which is forty five (45) days after receipt of written notice of a default hereunder, unless (a) the City has agreed, in writing signed by the City Representative, on the amount of a holdback from such draw request necessary to address such default, or unreasonably withheld. (b) Borrower has cured If the Town Engineer’s inspection discloses any work, including materials, as unacceptable or commenced to cure such default defective, the unacceptable or defective work will be excluded from the current Draw Request. The unacceptable or defective work and/or materials shall be replaced with acceptable work, including materials, before a Draw Request for payment for the work can be re-submitted to the reasonable satisfaction Town Engineer, for its approval, as part of the City Representative, Borrower agrees that it shall not submit further construction draw requests to any lender. The City agrees that, prior to the completion of construction, it shall provide Construction Lender with written notice of default hereunder concurrently with such notice being provided to City. The foregoing provisions in this Section 2.7 relating to a Draw Requests Request. (c) No more than one Draw Request shall be superseded by submitted during any Disbursement Agreement that governs such matters, or if thirty (30) day period. (d) Following the City, in its sole and absolute discretion, elects to rely on the County for Town Engineer’s approval of a Draw RequestsRequest, Escrow Agent shall be entitled to release from the Cash Assurance the funds requested pursuant to an approved Draw Request.