Permanent Phase Clause Samples
The Permanent Phase clause defines the period during which the ongoing, long-term terms of an agreement take effect after any initial or transitional phases have concluded. Typically, this clause specifies when the permanent phase begins, what obligations or rights continue or change, and how the parties are expected to operate under the enduring terms of the contract. Its core function is to clearly delineate the shift from temporary or preliminary arrangements to the stable, ongoing relationship, ensuring both parties understand when and how the permanent provisions apply.
Permanent Phase. Provided that all of the following conditions have then been satisfied by the Borrower to the City's reasonable satisfaction, the Borrower shall have the option, exercisable at any time after the fulfillment of the following conditions but in no event later than fifteen (15) days prior to the Construction Phase Maturity Date, to convert all amounts advanced during the Construction Phase to a Permanent Loan which Permanent Loan shall have a final maturity date not later than September 30, 2059 (the "Permanent Phase Maturity Date"):
(a) The Improvements shall have been fully completed to the City's satisfaction in accordance with the Plans and in accordance with all applicable governmental regulations and the City shall have received and approved written certifications of completion from the Borrower, the Borrower's architect, if any, and the General Contractor;
(b) The Borrower shall have furnished to the City copies of certificates of occupancy with respect to all of the Improvements and such other governmental consents or approvals for use and occupancy of the Improvements as a residential apartment complex, as may be required by local, county, state, or federal governmental agencies;
(c) The Borrower shall have furnished to the City and obtained the City's approval of a current as-built survey of the Land and Improvements which survey shall be prepared by a registered land surveyor who prepared the initial boundary survey or reasonably acceptable to the City and which survey shall show no matters which would materially and adversely affect
(1) the operation of the Improvements as a residential apartment complex or (2) the value of the Improvements or (3) the City's lien thereon;
(d) The Borrower shall have fully paid all costs and expenses of the construction and development of the Improvements and there shall be no unpaid materialmen or contractors unless such liens are bonded over (including, without limitation, the General Contractor) and the City shall have received a satisfactory endorsement to the Title Policy updating the effective date of the policy to the date of the commencement of the Permanent Phase and providing coverage against materialmen and mechanics' liens and against matters of survey; and
(e) No uncured Event of Default shall have occurred or shall be continuing under any of the Loan Documents; and
Permanent Phase. Provided the requirements of Article V are met, the period of time from the commencement of the Permanent Phase as provided in Section 5.3.
Permanent Phase. N/A 4.2 Exercise of Option to Convert Loan to Permanent Loan: N/A 4.3 Commencement of Permanent Loan: N/A
Permanent Phase. Provided that all of the following conditions have then been satisfied by the Borrower to the City's satisfaction, the Borrower shall have the option, exercisable at any time after the fulfillment of the following conditions but in no event later than fifteen (15) days prior to the Construction Phase Maturity Date, to convert all amounts advanced during the Construction Phase to a Permanent Loan which Permanent Loan shall have a final maturity date not later than July 31, 2057 (the "Permanent Phase Maturity Date"):
(a) The Improvements shall have been fully completed to the City's satisfaction in accordance with the Plans and in accordance with all applicable governmental regulations and the City shall have received and approved written certifications of completion from the Borrower, the Borrower's architect, if any, and the General Contractor;
(b) The Borrower shall have furnished to the City copies of certificates of occupancy with respect to all of the Improvements and such other governmental consents or approvals for use and occupancy of the Improvements as a residential apartment complex, as may be required by local, county, state, or federal governmental agencies;
(c) The Borrower shall have furnished to the City and obtained the City's approval of a current as-built survey of the Land and Improvements which survey shall be prepared by a registered land surveyor reasonably acceptable to the City and which survey shall show no matters which would materially and adversely affect (1) the operation of the Improvements as a residential apartment complex or
Permanent Phase. The period from the Conversion Date and ending on the Maturity
1. 146 Permitted Liens. Any easements and restrictions listed in a schedule of exceptions to coverage in the Title Policy as required by the Borrower Loan Documents.