Procedures and Conditions for Advances. The obtaining by Borrower of each Advance pursuant hereto shall be subject to the following terms and conditions:
Procedures and Conditions for Advances. The following procedures and conditions apply to each Project: Frequency of Advances. Unless otherwise agreed by Lender, Lender shall not be obligated to make advances of the Construction Loan more frequently than twice in every calendar month. Request for Advance. For each request for an advance of the Construction Loan, Borrower shall submit to Lender, at least 5 business days prior to the requested date of disbursement, a completed written disbursement request (each, a “Request for Advance”) in such form and detail as required by Lender. Each Request for Advance shall certify and contain in detail acceptable to Lender: (i) the cost of the labor that has been performed; (ii) the materials that have been incorporated into the Project; (iii) a written summary of all Hard Costs and Soft Costs incurred to date; (iv) an updated Construction Budget; (v) the Borrower’s interest rate selection as provided in the Note; and (vi) as required by Lender, invoices for Soft Costs in excess of $5,000.00 incurred since the date of the previous advance. Accompanying Materials. The Request for Advance shall be accompanied by such supporting data as Lender may require, including, without limitation, invoices, waivers of mechanic’s and materialmen’s liens, and AIA Forms G702 and G703 certified by the general contractor and architect and/or engineer for the Project, as applicable. Conditions To Advance. Lender will have no obligation to make any advance if a Default (as defined in the Loan Documents) or event which, with the giving of notice or the passage of time, or both, would constitute a Default under any of the Loan Documents has occurred and is continuing, and unless it has received from the Borrower (if not expressly waived by Lender), in form and substance satisfactory to Lender: (i) evidence of an updated title search and/or endorsement to the title policy required by Lender, as applicable, which shall be, unless expressly waived by Lender, in compliance with Lender’s minimum standards in effect at the time of such advance; and if any title policy contains a pending disbursement clause, the amount of the policy shall increase by the Construction Loan advance being made in connection therewith; (ii) if applicable, satisfactory evidence that Borrower has invested the required portion of the Equity Requirement for the Project; and (iii) evidence of compliance with any
Procedures and Conditions for Advances
