IN BORROWER (UNLESS BORROWER IS
LESSEE OF SUCH PERSONAL PROPERTY), AND (D) THAT THE INSURANCE PROCEEDS AND/OR
LETTERS OF CREDIT, COMPLETION AND SIMILAR BONDS, EACH OF WHICH IS SATISFACTORY
TO LENDER IN ITS REASONABLE DISCRETION, AND OTHER AMOUNTS DEPOSITED BY BORROWER
HELD BY LENDER AFTER SUCH PAYMENT IS MORE THAN THE ESTIMATED REMAINING COST TO
COMPLETE SUCH WORK; PROVIDED, HOWEVER, THAT IF SUCH CERTIFICATE IS GIVEN BY AN
ARCHITECT OR ENGINEER, SUCH ARCHITECT OR ENGINEER SHALL CERTIFY AS TO CLAUSE (A)
ABOVE, AND SUCH OFFICER'S CERTIFICATE SHALL CERTIFY AS TO THE REMAINING CLAUSES
ABOVE, AND PROVIDED, FURTHER, THAT LENDER SHALL NOT BE OBLIGATED TO DISBURSE
SUCH FUNDS IF LENDER DETERMINES, IN LENDER'S REASONABLE DISCRETION, THAT
BORROWER SHALL NOT BE IN COMPLIANCE WITH THIS SECTION 3.04(B).
ADDITIONALLY,
EACH REQUEST FOR PAYMENT SHALL CONTAIN A STATEMENT SIGNED BY BORROWER STATING
THAT THE REQUESTED PAYMENT IS FOR WORK COMPLETED TO DATE.
(IV)
EACH REQUEST FOR PAYMENT SHALL BE ACCOMPANIED BY WAIVERS OF LIEN,
IN CUSTOMARY FORM AND SUBSTANCE, COVERING THAT PART OF THE WORK FOR WHICH
PAYMENT OR REIMBURSEMENT IS BEING REQUESTED AND, IF REQUIRED BY LENDER, A SEARCH
PREPARED BY A TITLE COMPANY OR LICENSED ABSTRACTOR, OR BY OTHER EVIDENCE
REASONABLY SATISFACTORY TO LENDER THAT THERE HAS NOT BEEN FILED WITH RESPECT TO
THE PROPERTY ANY MECHANIC'S OR OTHER LIEN OR INSTRUMENT FOR RETENTION OF TITLE
RELATING TO ANY PART OF THE WORK NOT DISCHARGED OF RECORD.
ADDITIONALLY, AS TO
ANY PERSONAL PROPERTY COVERED BY THE REQUEST FOR PAYMENT, LENDER SHALL BE
FURNISHED WITH EVIDENCE OF BORROWER HAVING INCURRED A PAYMENT OBLIGATION
THEREFOR AND SUCH FURTHER EVIDENCE REASONABLY SATISFACTORY TO ASSURE LENDER THAT
UCC FILINGS THEREFOR PROVIDE A VALID FIRST LIEN ON THE PERSONAL PROPERTY.
(V)
LENDER SHALL HAVE THE RIGHT TO INSPECT THE WORK AT ALL REASONABLE
TIMES UPON REASONABLE PRIOR NOTICE AND MAY CONDITION ANY DISBURSEMENT OF
INSURANCE PROCEEDS UPON SATISFACTORY COMPLIANCE BY BORROWER WITH THE PROVISIONS
HEREOF.
NEITHER THE APPROVAL BY LENDER OF ANY REQUIRED PLANS AND SPECIFICATIONS
FOR THE WORK NOR THE INSPECTION BY LENDER OF THE WORK SHALL MAKE LENDER
RESPONSIBLE FOR THE PREPARATION OF SUCH PLANS AND SPECIFICATIONS, OR THE
COMPLIANCE OF SUCH PLANS AND SPECIFICATIONS OF THE WORK, WITH ANY APPLICABLE
LAW, REGULATION, ORDINANCE, COVENANT OR AGREEMENT.
(VI)
INSURANCE PROCEEDS SHALL NOT BE DISBURSED MORE FREQUENTLY THAN
ONCE EVERY THIRTY (30) DAYS.
(VII)
UNTIL SUCH TIME AS THE WORK HAS BEEN SUBSTANTIALLY COMPLETED,
LENDER SHALL NOT BE OBLIGATED TO DISBURSE UP TO TEN PERCENT (10%) OF THE COST OF
THE WORK (THE
67
"RETENTION AMOUNT") TO BORROWER.
UPON SUBSTANTIAL COMPLETION OF THE WORK,
BORROWER SHALL SEND NOTICE THEREOF TO LENDER AND, SUBJECT TO THE CONDITIONS OF
SECTION 3.04(B)(I)-(IV), LENDER SHALL DISBURSE ONE-HALF OF THE RETENTION AMOUNT
TO BORROWER; PROVIDED, HOWEVER, THAT THE REMAINING ONE-HALF OF THE RETENTION
AMOUNT SHALL BE DISBURSED TO BORROWER WHEN LENDER SHALL HAVE RECEIVED COPIES OF
ANY AND ALL CERTIFICATES OF OCCUPANCY OR OTHER CERTIFICATES, LICENSES AND
PERMITS REQUIRED FOR THE OWNERSHIP, OCCUPANCY AND OPERATION OF THE PROPERTY IN
ACCORDANCE