Initial Funding Conditions Sample Clauses
The Initial Funding Conditions clause sets out the specific requirements that must be satisfied before the first disbursement of funds under an agreement can occur. Typically, these conditions may include the delivery of certain documents, completion of due diligence, or fulfillment of regulatory approvals. By clearly outlining these prerequisites, the clause ensures that all parties are protected and that funding is only provided once essential criteria are met, thereby reducing risk and ensuring readiness for the transaction.
Initial Funding Conditions. The Lender shall not be required to advance any funds prior to the Borrower having fulfilled to the Lender's satisfaction the following conditions:
a) All the Security and ancillary loan agreements and documents and opinions shall have been executed and delivered to the Lender or its solicitors and registered where and as required.
b) The Lender shall have satisfied itself with the financial performance and condition of the Borrower and each of the Guarantors in the Lender’s sole discretion. Each of the Borrowers and Guarantors shall provide within five business days of the date of execution of this Commitment, at a minimum, financial statements for its two most recently ended fiscal years. To facilitate the Lender's due diligence regarding the creditworthiness of the Borrower and each of the Guarantors, each of the Guarantors and the Borrower shall authorize the Lender to conduct credit checks and each of the financial institutions with which the Borrower and the respective Guarantors deal to release any and all information reasonably required and requested by the Lender to adequately assess the credit worthiness of each respectively. Each of the individual Guarantors shall complete the Lender’s form of Personal Net Worth Statement.
c) The Borrower shall deliver to the Lender within five business days of the acceptance of this Commitment for the Lender's satisfactory review and acceptance the following:
i. A soils test report (load bearing capacity) by a professional engineer as is acceptable to the Lender demonstrating to the satisfaction of the Lender that the proposed construction and site improvements of the Project are feasible under existing soil conditions, together with evidence that the construction specifications for the Project provide for construction in compliance with such conditions and with the recommendations, if any, which may be contained in such soils test report.
ii. An appraisal, satisfactory to the Lender, of the Project confirming a fair market value of lots 6, 8 and 11 as is of $4,229,938 and as completed of $5,009,744 inclusive of HST to be prepared at the Borrower's expense and paid in advance by a Lender approved appraiser. Such appraisal report must be addressed to the Lender or be accompanied by a Transmittal Letter from the appraiser to the Lender and shall confirm that the Lender can rely upon such appraisal for lending purposes.
iii. The Borrower shall have pre‐sold the Project’s lots 6, 8 and 11, with firm and binding pur...
Initial Funding Conditions. Notwithstanding anything to the contrary herein, the obligations of the Lenders to make Advances shall not become effective until the date (the "Effective Date"), on which each of the following conditions is satisfied (or waived by the Administrative Agent in its sole discretion):
Initial Funding Conditions. Each of the conditions precedent set forth in Section 3.2 shall be satisfied with respect to the Substitute Project, and the initial Borrowing of Construction Loans shall be made for the Substitute Project, on the date on which the replacement occurs.