12-06-1995 Council Agenda - Laserfiche WebLink

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Event of Default occurs herein, apply such deposit to the cost of completion of the Work or to the indebtedness evidenced by the Note. 5.5 Title shall disburse all funds advanced to it in accordance with this Agreement; provided, however, if Title shall, in its opinion, be unable to perform its obligations hereunder, Title shall have the right to refuse to disburse said advance. In the event Title shall fail to disburse any advance within three (3) business days after Title receives funds from the EDA and the documentation required in Section 5.3 from Developer, Title shall return said advance to the EDA. Any amounts advanced to Title and returned by Title to the EDA shall not be deemed to have been advanced against the Note. 5.6 Title shall not disburse any advance hereunder if there have been any changes in the priority of the EDA's mortgage as set forth in the mortgagee's policy of title insurance. Title shall promptly notify the EDA of any change in the status of title to the Land or the Work. 5.7 The form of the Disbursement Request, mechanic's lien waivers, and any and all other instruments or documents required to be delivered in connection with an advance hereunder shall be in form and substance satisfactory to the EDA and Title. 5.8 The EDA, Title and their representatives shall have access to the Project at all reasonable times and shall have the right to enter the Project and to conduct such inspections thereof as they shall deem necessary or desirable for the protection of the EDA's interests. 304291.2 5.9 The EDA intends to use the City of Little Canada's Building Inspector to inspect the Work and to determine if the requirements of Section 5.2(a) through 5.2(d) are satisfied. If the EDA reasonably determines that the City's Building Inspector lacks the qualifications necessary to determine if one or more of the requirements set forth in Section 5.2(a) through 5.2(d) have been satisfied, the EDA may retain, at Developer's expense, an architect to inspect the Project or to review requested change orders relating to the Project. 5.10 No third party shall have the right to use or rely upon the reports of the City Building Inspector or any other reports generated by the EDA or any of the EDA's other consultants for any purpose whatsoever, whether made prior to or after commencement of construction. Developer shall be responsible for making its own inspections of the Project during the course of construction and shall determine to its own satisfaction that the work done and materials supplied are in accordance with applicable contracts. By authorizing an Advance after any inspection of the Project by the EDA, the EDA shall not be deemed to waive any Default or Event of Default, any right to require construction defects to be corrected, or acknowledge that all construction conforms with the Plans. Page 15