06-20-11 Council Agenda - Laserfiche WebLink

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Any such funds deposited with the Lender shall be disbursed to pay Project Costs before any further disbursement of Advances hereunder. Section 2.4. Advances Without Receipt of Draw Request. Notwithstanding anything herein to the contrary, the Lender shall have the irrevocable right at any time and from time to time to apply funds which it has committed to advance hereunder to pay interest on the Note as and when it becomes due, and to pay any and all of the expenses referred to in Section 7.4 hereof, all without receipt of a Draw Request or other authorization from the Borrower. ARTICLE, 111 Conditions of Lending Section 3.1. Initial Advance. Lender's obligation to make the initial Advance and each subsequent Advance shall be subject to the condition precedent that it shall have received the following, each in form and substance satisfactory to the Lender: (a) The Note duly executed by the Borrower and Guaranties duly executed by each Guarantor. (b) The Mortgage and the Assignment of Rents duly executed by the Borrower, each duly recorded as an actual third priority lien on a good, marketable and insured fee simple title to the Land, and a security interest in the personal property located thereon. (e) A copy of the Plans or Drawings and Specifications for the Project. (d) A current sworn construction statement and construction timetable duly executed on behalf of the Borrower, showing all Project Costs of any kind incurred and to be incurred in constructing the Improvements and the financing thereof, with the total of such costs and expenses not exceeding $100,000.00, together with a sworn statement of the Borrower(s) listing the names of each Subcontractor and the amount of its subcontract. (e) (1) A Mortgagee's A.L.T.A. title insurance policy or binding commitment therefor, issued by Title, at the Borrower's expense, in favor of the Lender, as mortgagee under the Mortgage, free from all exceptions not previously approved by the Lender, and that will insure the Mortgage to be a valid third priority lien on the Project that will be free from all standard exceptions, and mechanic's liens, subject only to such encumbrances or exceptions as are approved by the Lender, in the amount of $210,939.48. fividence that the Project and the contemplated use thereol'are permitted by and will comply with all applicable use or other covenants or restrictions in prior conveyances, zoning ordinances and other laws or regulations governing 6 10