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06-10-2026 Council Packet
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06-10-2026 Council Packet
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4. Upon receipt of an approved Disbursement Request, specified in Paragraph 2, Exhibit A, <br />and a sufficient amount of Loan Proceeds to pay said Disbursement Request, Title shall <br />obtain partial and/or full lien waivers, lien releases or lien satisfactions, in the customary <br />form from the general contractor and all subcontractors and material suppliers with whom <br />the general contractor has contracted with in connection with the property. Title shall <br />promptly notify the Lender of its inability with respect to any Disbursement Request <br />to obtain waivers, releases or satisfactions. Upon receipt of any such notice, the Lender <br />shall be entitled, but not obligated, to revoke its approval of such Disbursement Request. <br />5. Title agrees to act as the disbursing agent under this Agreement and shall account for all <br />funds deposited with it and shall immediately return to the Lender all undisbursed Loan <br />Proceeds from each Disbursement Request. Title agrees not to use, invest or collect <br />interest on any Loan Proceeds held by Title. <br />6. If at any time during the course of construction, the total of the unpaid disclosed LCDA <br />Project Costs, as indicated by the column totals on the sworn Project Cost statement <br />presented to Title, exceeds the amount of the aggregate undisbursed Loan Proceeds and <br />the Other Project Financing, as calculated by subtracting the total amount of liability on <br />the Project Cost Statement as described in the Loan Agreement from the amount of such <br />grants and loans, Title shall not make further disbursements of the Loan Proceeds under <br />the terms of this Agreement until Bon-ower has deposited with Title the sum necessary to <br />make the available funds equal to the unpaid disclosed cost of construction, or unless <br />specifically directed to do so by the Lender. <br />7. Title may rely on the statements made by Borrower, the Lender or others in any <br />documents submitted to it under this Agreement and shall not be required to verify the <br />accuracy of such statements and shall not be liable for any disbursements of funds made <br />in reliance on any such statement, unless Title is negligent with respect thereto. <br />8. Borrower agrees to indemnify and hold harmless Title and the Lender from any and <br />all claims, demands or costs associated with the disbursement of the Loan Proceeds, <br />including reasonable attorney's fees arising therefrom. <br />9. The functions and duties of Title include only those set forth in this Agreement and it <br />is not entitled to act and shall not act, except in accordance with the terms and <br />conditions of this Agreement. Title does not insure that the improvements will be <br />completed, nor does it insure that the improvements will be in accordance with plans and <br />specifications, nor does it make any certifications of the.Inspecting Architect its own, <br />nor does it assume any liability for same other than procurement as one of the <br />conditions precedent to each disbursement, Title has no liability for loss caused by an <br />error in the certifications furnished it hereunder as to work in place. Title shall not be <br />responsible for any loss of documents or funds while such documents or funds are not in <br />its custody. Documents or funds that are deposited in the United States mail shall not <br />be construed as being in the custody of Title. <br />10. This Disbursement Agreement shall be in full force and effect, from the date of this <br />Agreement and shall remain in effect until all of the Loan Proceeds shall have been
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