AND AGREES TO FURNISH, TO THE TITLE INSURER THE SWORN STATEMENTS, LIEN
WAIVERS AND ALL OTHER DOCUMENTS REQUIRED BY THE TITLE INSURER FOR IT TO FURNISH
THE ENDORSEMENTS REFERRED TO IN SECTION 5.1(F) ABOVE, INCLUDING, BUT NOT LIMITED
TO, A WRITTEN CERTIFICATION BY BORROWER OF THE WORK COMPLETED TO DATE ON THE
PROJECT WHICH WILL BE COVERED BY SUCH TITLE ENDORSEMENT.
UPON REQUEST BY
LENDER, BORROWER SHALL FURNISH COPIES OF THESE ITEMS TO LENDER.
(C)
SOFT COST BACKUP.
FOR EACH REQUEST FOR AN ADVANCE FOR SOFT COSTS,
COPIES OF BONAFIDE THIRD PARTY INVOICES, CONTRACTS AND OTHER DOCUMENTS AND
VERIFICATION OF SUCH EXPENSES IN LENDER'S REASONABLE DISCRETION.
(D)
SITE INSPECTION.
LENDER MAY RELY ON THE ADVICE OF LENDER'S
PROJECT CONSULTANT, WHO SHALL BE RETAINED BY LENDER AT BORROWER'S EXPENSE.
LENDER, THROUGH LENDER'S PROJECT CONSULTANT OR ITS OWN EMPLOYEES, MAY PERFORM A
SITE INSPECTION TO CONFIRM THAT PROGRESS WITH THE CONVERSION OF THE PROJECT TO A
CONDOMINIUM PROPERTY CONFORMS TO THE SWORN STATEMENT AND IS PROGRESSING WITHIN
THE PROJECT BUDGET.
IN NO EVENT, HOWEVER, SHALL THE OPINION OF LENDER'S PROJECT
CONSULTANT BE BINDING ON LENDER.
(E)
CHANGE ORDERS.
ALL CHANGE ORDERS (INCLUDING PENDING CHANGE
ORDERS), REGARDLESS OF WHETHER OR NOT LENDER'S APPROVAL IS REQUIRED UNDER
SECTION 6.2.
(F)
OTHER ITEMS.
SUCH OTHER DOCUMENTS AND INFORMATION AS LENDER MAY
REASONABLY REQUEST.
THESE MAY INCLUDE COPIES OF ANY NEW CONTRACTS OR
SUBCONTRACTS WHICH BORROWER MAY HAVE ENTERED INTO RESPECTING THE PROJECT; BONDS
PERTAINING TO THESE SUBCONTRACTS AS MAY BE REQUIRED BY LENDER; AND
CERTIFICATIONS FROM THE STRUCTURAL, MECHANICAL AND ELECTRICAL ENGINEERS.
SECTION 5.3
FINAL ADVANCE.
LENDER SHALL MAKE THE FINAL ADVANCE
FOR COSTS OF CONSTRUCTION FOR THE PROJECT UPON BORROWER'S DELIVERY TO LENDER OF
THE FOLLOWING ITEMS, EACH TO BE REASONABLY SATISFACTORY TO LENDER.
THESE
CONDITIONS SHALL BE IN ADDITION TO THOSE SET FORTH IN SECTION 5.1 AND SECTION
5.2 AND ELSEWHERE IN THIS AGREEMENT.
(A)
REQUEST FOR ADVANCE DOCUMENTS, WHICH INCLUDE CERTIFICATIONS FROM
BORROWER THAT THE PROJECT HAS BEEN COMPLETED;
(B)
A FINAL MECHANIC'S LIEN ENDORSEMENT FOR THE CURRENT ADVANCE AND
DELETION OF THE PENDING CONSTRUCTION EXCEPTION TO THE TITLE POLICY, TOGETHER
WITH SUCH OTHER ENDORSEMENTS AS MAY BE REASONABLY REQUESTED BY LENDER;
16
(C)
FOLLOWING THE OCCURRENCE OF AN EVENT OF DEFAULT, FINAL LIEN
WAIVERS FROM ANY CONTRACTOR AND ALL SUBCONTRACTORS AND MATERIALMEN; PROVIDED,
HOWEVER, THAT IN THE EVENT CONDITIONAL LIEN WAIVERS ARE PROVIDED TO SUBSTANTIATE
SUCH DRAW REQUEST, THEN BORROWER SHALL ALSO PROVIDE AN UNCONDITIONAL LIEN WAIVER
COVERING ALL PRIOR DRAW REQUESTS MADE AND SHALL PROVIDE A FINAL UNCONDITIONAL
LIEN WAIVER NO LATER THAN 30 DAYS FOLLOWING THE FINAL ADVANCE; AND
(D)
AN UPDATE OF THE TAX, JUDGMENT LIEN AND UNIFORM COMMERCIAL CODE
FINANCING STATEMENT SEARCHES OBTAINED PURSUANT TO SECTION 4.1(B) SHOWING NO
MATTERS WHICH ARE NOT PERMITTED EXCEPTIONS.
SECTION 5.4
PAYMENT OF INTEREST; INTEREST RESERVE.
(A)
A PORTION OF THE PROCEEDS OF THE LOAN IN THE AMOUNT OF ONE MILLION
SEVEN HUNDRED THIRTY-ONE THOUSAND AND NO/100 DOLLARS ($1,731,000) SHALL BE
DESIGNATED IN THE PROJECT BUDGET AS THE INTEREST RESERVE