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theretofore been deposited with the Lender for such purpose and shall thereupon send written notice thereof to the Borrower specifying the amount required to be deposited by the Borrower with the Lender to provide sufficient funds to complete the Improvements, the Borrower agrees that it will, within ten (10) calendar days of receipt of any such notice, deposit with the Lender, in a non - interest - bearing escrow account, the amount of funds specified in the Lender's notice. 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 III 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. (c) 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) 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, 6