INCLUDED IN THE PROJECT.
PROJECT ADVANCES FOR HARD
COSTS WITH RESPECT TO THE TRADE OR ANY PORTION OF CONSTRUCTION COVERED BY ANY OF
THE LINE ITEMS (OR PORTIONS THEREOF) IN THE PROJECT BUDGET TO BE FUNDED FROM THE
FUTURE FUNDING SHALL NOT EXCEED:
(I)
THE TOTAL HARD COSTS AS SET FORTH AS A LINE ITEM (OR PORTION
THEREOF) IN THE PROJECT BUDGET TO PERFORM AND COMPLETE THE TRADE OR PORTION OF
CONSTRUCTION COVERED BY SUCH LINE ITEM, MULTIPLIED BY THE STAGE OF COMPLETION OF
SUCH TRADE OR PORTION OF CONSTRUCTION (EXPRESSED AS A PERCENTAGE) AS DETERMINED
BY THE CONSTRUCTION CONSULTANT; LESS
(II)
ANY RETAINAGE WITH RESPECT TO SUCH LINE ITEM, IF WITHHELD
PURSUANT TO THE TERMS HEREOF, AND THE AMOUNTS PREVIOUSLY ADVANCED FOR SUCH HARD
COSTS AS SET FORTH IN SUCH LINE ITEM.
3.1.5.
ADVANCES FOR SOFT COSTS.
WITH RESPECT TO EACH PROJECT, TO THE
EXTENT THAT ANY PROJECT ADVANCE REQUEST SHALL INCLUDE SOFT COSTS, LENDER WILL,
UPON SATISFACTION OF THE APPLICABLE CONDITIONS SET FORTH IN THIS AGREEMENT,
INCLUDE THE FULL AMOUNT OF SUCH SOFT COSTS IN A PROJECT ADVANCE IF (I) SUCH SOFT
COSTS ARE SET FORTH IN THE PROJECT BUDGET AS A PORTION OF THE PROJECT COSTS TO
BE FUNDED FROM THE FUTURE FUNDING, AND (II) LENDER HAS RECEIVED EVIDENCE
REASONABLY SATISFACTORY TO LENDER THAT SUCH SOFT COSTS ARE THEN DUE AND PAYABLE
OR HAVE BEEN PAID BY BORROWER.
3.1.6.
PROJECT ADVANCE REQUESTS.
(A)
FORM OF PROJECT ADVANCE REQUEST.
IN THE EVENT THAT BORROWER SHALL
WISH TO OBTAIN A PROJECT ADVANCE, BORROWER SHALL DELIVER TO LENDER AND THE
CONSTRUCTION CONSULTANT A FULLY COMPLETED AND EXECUTED PROJECT ADVANCE REQUEST
THAT SATISFIES THE REQUIREMENTS SET FORTH IN THIS
79
SECTION 3.1 AT LEAST TEN (10) BUSINESS DAYS PRIOR TO THE ADVANCE DATE.
EACH
PROJECT ADVANCE REQUEST DELIVERED BY BORROWER SHALL CONSTITUTE BORROWER'S
REPRESENTATION AND WARRANTY TO LENDER THAT:
(I)
ANY COMPLETED CONSTRUCTION FOR WHICH THE PROJECT ADVANCE IS BEING
REQUESTED IS SUBSTANTIALLY IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS;
(II)
ALL COSTS FOR THE PAYMENT OF WHICH THE LENDERS HAVE PREVIOUSLY
ADVANCED FUNDS HAVE IN FACT BEEN PAID;
(III)
ALL THE REPRESENTATIONS AND WARRANTIES OF EACH BORROWER PARTY
CONTAINED IN THE LOAN DOCUMENTS WERE TRUE, CORRECT AND COMPLETE AS OF THE DATE
OF EXECUTION OF THE AGREEMENT, AND IN ALL MATERIAL RESPECTS AS OF THE DATE OF
ANY PREVIOUS ADVANCE AND CONTINUE TO BE TRUE AND CORRECT IN ALL MATERIAL
RESPECTS AS OF THE DATE OF SUCH ADVANCE REQUEST EXCEPT TO THE EXTENT THAT THE
SAME CAN NO LONGER BE TRUE AS THE RESULT OF THE PASSAGE OF TIME; AND
(IV)
NO DEFAULT OR EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE
CONTINUING HEREUNDER.
(B)
PROJECT ADVANCE REQUEST REQUIRED DOCUMENTATION.
EACH PROJECT
ADVANCE REQUEST SHALL BE SUBJECT TO LENDER'S REASONABLE APPROVAL AND SHALL BE IN
ACCORDANCE WITH THE DISBURSEMENT SCHEDULE, AND SHALL BE ACCOMPANIED BY:
(I)
AN EXECUTED BORROWER ADVANCE CERTIFICATION IN THE FORM ATTACHED
HERETO AS EXHIBIT C;
(II)
WITH RESPECT TO ANY PROJECT ADVANCE REQUEST THAT INCLUDES