COMPLETED.
THE RESTORATION RETAINAGE SHALL BE REDUCED TO FIVE PERCENT
(5%) OF THE COSTS INCURRED UPON RECEIPT BY LENDER OF SATISFACTORY EVIDENCE THAT
FIFTY PERCENT (50%) OF THE RESTORATION HAS BEEN COMPLETED.
THE RESTORATION
RETAINAGE SHALL IN NO EVENT, AND NOTWITHSTANDING ANYTHING TO THE CONTRARY SET
FORTH ABOVE IN THIS SECTION 8.4(B), BE LESS THAN THE AMOUNT ACTUALLY HELD BACK
BY BORROWER FROM CONTRACTORS, SUBCONTRACTORS AND MATERIALMEN ENGAGED IN THE
RESTORATION.
THE RESTORATION RETAINAGE SHALL NOT BE RELEASED UNTIL THE
RESTORATION CONSULTANT CERTIFIES TO LENDER THAT THE RESTORATION HAS BEEN
COMPLETED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 8.4(B) AND THAT ALL
APPROVALS NECESSARY FOR THE RE-OCCUPANCY AND USE OF THE AFFECTED PROPERTY HAVE
BEEN OBTAINED FROM ALL APPROPRIATE GOVERNMENTAL AUTHORITIES, AND LENDER RECEIVES
EVIDENCE SATISFACTORY TO LENDER THAT THE COSTS OF THE RESTORATION HAVE BEEN PAID
IN FULL OR WILL BE PAID IN FULL OUT OF THE RESTORATION RETAINAGE; PROVIDED,
HOWEVER, THAT LENDER WILL RELEASE THE PORTION OF THE RESTORATION RETAINAGE BEING
HELD WITH RESPECT TO ANY CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN ENGAGED IN THE
RESTORATION AS OF THE DATE UPON WHICH THE RESTORATION CONSULTANT CERTIFIES TO
LENDER THAT THE CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN HAS SATISFACTORILY
COMPLETED ALL WORK AND HAS SUPPLIED ALL MATERIALS IN ACCORDANCE WITH THE
PROVISIONS OF THE CONTRACTOR'S, SUBCONTRACTOR'S OR MATERIALMAN'S CONTRACT, THE
CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN DELIVERS THE LIEN WAIVERS AND EVIDENCE
OF PAYMENT IN FULL OF ALL SUMS DUE TO THE CONTRACTOR, SUBCONTRACTOR OR
MATERIALMAN AS MAY BE REASONABLY REQUESTED BY LENDER OR BY THE TITLE COMPANY
ISSUING THE TITLE INSURANCE POLICY, AND LENDER RECEIVES AN ENDORSEMENT TO THE
TITLE INSURANCE POLICY INSURING THE CONTINUED PRIORITY OF THE LIEN OF EACH
MORTGAGE AND EVIDENCE OF PAYMENT OF ANY PREMIUM PAYABLE FOR SUCH ENDORSEMENT.
IF REQUIRED BY LENDER, THE RELEASE OF ANY SUCH PORTION OF THE RESTORATION
RETAINAGE SHALL BE APPROVED BY THE SURETY COMPANY, IF ANY, WHICH HAS ISSUED
90
A PAYMENT OR PERFORMANCE BOND WITH RESPECT TO THE CONTRACTOR, SUBCONTRACTOR OR
MATERIALMAN.
(V)
LENDER SHALL NOT BE OBLIGATED TO MAKE
DISBURSEMENTS OF THE NET PROCEEDS MORE FREQUENTLY THAN ONCE EVERY CALENDAR
MONTH.
(VI)
IF AT ANY TIME THE NET PROCEEDS OR THE
UNDISBURSED BALANCE THEREOF SHALL NOT, IN THE REASONABLE OPINION OF LENDER IN
CONSULTATION WITH THE RESTORATION CONSULTANT, BE SUFFICIENT TO PAY IN FULL THE
BALANCE OF THE COSTS WHICH ARE ESTIMATED BY THE RESTORATION CONSULTANT TO BE
INCURRED IN CONNECTION WITH THE COMPLETION OF THE RESTORATION, BORROWER SHALL
DEPOSIT THE DEFICIENCY (THE "NET PROCEEDS DEFICIENCY") WITH LENDER BEFORE ANY
FURTHER DISBURSEMENT OF THE NET PROCEEDS SHALL BE MADE.
THE NET PROCEEDS
DEFICIENCY DEPOSITED WITH LENDER SHALL BE HELD BY LENDER AND SHALL BE DISBURSED
FOR COSTS ACTUALLY INCURRED IN CONNECTION WITH THE RESTORATION ON THE SAME
CONDITIONS APPLICABLE TO THE DISBURSEMENT OF THE NET PROCEEDS, AND UNTIL SO
DISBURSED PURSUANT TO THIS SECTION 8.4(B) SHALL CONSTITUTE ADDITIONAL SECURITY
FOR THE DEBT AND OTHER OBLIGATIONS UNDER THE LOAN DOCUMENTS.
(VII)
THE EXCESS, IF ANY, OF THE NET PROCEEDS AND THE