Common use of Using Loan Proceeds Clause in Contracts

Using Loan Proceeds. Borrower shall use the proceeds of the Loan specifically and only to facilitate the development building and operation of the Project within the State of North Carolina, and will upon demand of Lender furnish such written evidence that the proceeds have been used in a manner consistent with such purposes. In addition, upon demand of Lender, Borrower shall periodically furnish such written evidence that establishes general compliance with the EB-5 Program, including the creation and continuation of requisite employment created by the Project, pursuant to the EB-5 Program and as disclosed in the Offering. Borrower shall not, nor shall Borrower suffer, cause, or permit any Person on Borrower’s behalf, to make any payments to any Person for any purpose that could be construed to cause Borrower to have used the proceeds of the Loan for any purpose not consistent with the EB-5 Program, including the creation of the requisite employment in the State of North Carolina required by the EB-5 Program with respect to the Project. Without limiting the foregoing, Borrower shall use the Loan proceeds solely to pay, or to reimburse Borrower for paying, costs and expenses shown on the Budget approved by Lender and incurred by Borrower in connection with the acquisition and development of the Land, the building of the Improvements on the Land, the Improvements and acquisition of Equipment, together with (a) other expenses set forth on the Budget, approved by Lender, and (b) such incidental costs and expenses relating thereto as may be approved from time to time in writing by Lender. Borrower shall take all steps necessary to assure that Loan proceeds are used by its contractors and subcontractors to pay such costs and expenses which could otherwise constitute a mechanic’s lien claim against the Project.