SUBMISSION OF DRAW REQUESTS; NOTIFICATION OF LIBOR RATE.
DRAW
REQUESTS MAY BE SUBMITTED TO AGENT NO MORE FREQUENTLY THAN ONCE EVERY FIFTEEN
(15) DAYS AND NOT MORE THAN ONCE PER CALENDAR MONTH.
NOT LESS THAN THREE
(3) BUSINESS DAYS PRIOR TO THE INTENDED ADVANCE DATE, AGENT SHALL DELIVER
WRITTEN NOTICE TO EACH LENDER AT THE ADDRESS SPECIFIED BY EACH LENDER FROM TIME
TO TIME, WHICH NOTICE SHALL INCLUDE THE INTENDED ADVANCE DATE AND SUCH LENDER'S
RATABLE SHARE OF SUCH ADVANCE.
ON THE BUSINESS DAY IMMEDIATELY PRIOR TO THE
START DAY, AGENT SHALL DELIVER WRITTEN NOTICE TO EACH LENDER AND BORROWER
INFORMING EACH LENDER AND BORROWER OF THE LIBOR RATE FOR THE UPCOMING CALENDAR
MONTH INTEREST PERIOD FOR ALL OUTSTANDING PRINCIPAL AND ANY ADVANCE MADE DURING
SUCH INTEREST PERIOD.
HOWEVER, AGENT SHALL
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SUFFER NO PENALTY OR LIABILITY TO BORROWER FOR FAILURE TO GIVE ANY SUCH NOTICE
TO BORROWER.
UNLESS OTHERWISE NOTIFIED BY AGENT, EACH LENDER MAY ASSUME THAT
ALL CONDITIONS TO SUCH ADVANCE ARE SATISFIED ON THE INTENDED ADVANCE DATE.
(B)
DISBURSEMENT PROCEDURES.
(I)
PROVIDED THAT AGENT HAS NOT ELECTED, IN ACCORDANCE WITH SECTION
5.02(B)(II) HEREOF, TO DISBURSE ADVANCES THROUGH THE DISBURSEMENT AGENT IN
ACCORDANCE WITH THE PROCEDURES SET FORTH IN PARAGRAPH 2 OF THE CONSTRUCTION LOAN
DISBURSEMENT AGREEMENT, NOT LATER THAN 11:00 A.M. NEW YORK CITY TIME ON THE
INTENDED ADVANCE DATE, EACH LENDER SHALL MAKE AVAILABLE TO AGENT SUCH LENDER'S
RATABLE PORTION OF SUCH ADVANCE IN SAME-DAY FUNDS AND, IF APPLICABLE, AGENT
SHALL MAKE AVAILABLE, IN SAME DAY FUNDS TO THE EXTENT IN ITS POSSESSION, THE
OTHER FUNDS AND BORROWER SHALL MAKE AVAILABLE TO AGENT ALL OTHER OTHER FUNDS IN
SAME-DAY FUNDS, IN EACH CASE TO THE EXTENT SHOWN IN THE DELIVERY REFERRED TO IN
SECTION 4.02(E)(2) HEREOF, AND UPON FULFILLMENT OF THE APPLICABLE CONDITIONS IN
THIS AGREEMENT AND PARAGRAPH 1 OF THE CONSTRUCTION LOAN DISBURSEMENT AGREEMENT,
AGENT SHALL DISBURSE SUCH ADVANCE TO BORROWER.
(II)
AGENT MAY ELECT TO DISBURSE ADVANCES THROUGH THE DISBURSEMENT
AGENT PURSUANT TO PARAGRAPH 2 OF THE CONSTRUCTION LOAN DISBURSEMENT AGREEMENT
(A) DURING THE CONTINUANCE OF A DEFAULT OR EVENT OF DEFAULT, (B) SUBJECT TO
SECTION 4.01(Q) HEREOF, UPON ITS RECEIPT OF REASONABLE EVIDENCE THAT BORROWER
FAILED TO PROMPTLY PAY THE APPLICABLE AMOUNTS OUT OF ANY ADVANCE TO THE GENERAL
CONTRACTOR OR ANY OTHER CONTRACTOR OR SUBCONTRACTOR WHOSE COSTS WERE THE BASIS
OF THE APPLICABLE DRAW REQUEST OR THAT ANY CONTRACTOR OR SUBCONTRACTOR WHOSE
COSTS WERE THE BASIS OF THE APPLICABLE DRAW REQUEST HAVE NOT BEEN PAID, OR (C)
IF BORROWER HAS TAKEN ANY ACTIONS, OR FAILED TO TAKE ANY ACTIONS, WHICH HAVE
RESULTED, OR WOULD REASONABLY BE EXPECTED TO RESULT, IN THE FILING OR ASSERTION
OF ANY LIEN ON THE PREMISES (OTHER THAN ANY PERMITTED EXCEPTION), PROVIDED THAT
NOTHING CONTAINED IN THIS SENTENCE SHALL BE CONSTRUED TO REQUIRE AGENT OR ANY
LENDER TO MAKE AN ADVANCE UPON THE OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN
THE FOREGOING CLAUSES (A), (B) AND (C).
IF AGENT MAKES SUCH AN ELECTION IN
ACCORDANCE WITH