THE COST OF THE WORK IS REASONABLY ESTIMATED BY AN ARCHITECT OR
ENGINEER IN A CERTIFICATION REASONABLY ACCEPTABLE TO LENDER TO BE EQUAL TO OR
EXCEED FIVE PERCENT (5%) OF THE LOAN AMOUNT, SUCH WORK SHALL BE PERFORMED UNDER
THE SUPERVISION OF AN ARCHITECT OR ENGINEER, IT BEING UNDERSTOOD THAT THE PLANS
AND SPECIFICATIONS WITH RESPECT THERETO SHALL PROVIDE FOR WORK SO THAT, UPON
COMPLETION THEREOF, THE PROJECT SHALL BE AT LEAST EQUAL IN REPLACEMENT VALUE AND
GENERAL UTILITY TO THE PROJECT PRIOR TO THE DAMAGE OR DESTRUCTION.
(III)
EACH REQUEST FOR PAYMENT SHALL BE MADE ON NOT LESS THAN TEN (10) DAYS'
PRIOR NOTICE TO LENDER AND SHALL BE ACCOMPANIED BY A CERTIFICATE OF AN ARCHITECT
OR ENGINEER, OR, IF THE WORK IS NOT REQUIRED TO BE SUPERVISED BY AN ARCHITECT OR
ENGINEER, BY AN OFFICER'S CERTIFICATE STATING (A) THAT PAYMENT IS FOR WORK
COMPLETED IN COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, IF REQUIRED UNDER
CLAUSE (II) ABOVE, (B) THAT THE SUM REQUESTED IS REQUIRED TO REIMBURSE BORROWER
FOR PAYMENTS BY BORROWER TO DATE, OR IS DUE TO THE CONTRACTORS, SUBCONTRACTORS,
MATERIALMEN, LABORERS, ENGINEERS, ARCHITECTS OR OTHER PERSONS RENDERING SERVICES
OR MATERIALS FOR THE WORK (GIVING A BRIEF DESCRIPTION OF SUCH SERVICES AND
MATERIALS), AND THAT WHEN ADDED TO ALL SUMS PREVIOUSLY PAID OUT BY LENDER DOES
NOT EXCEED THE VALUE OF THE WORK DONE TO THE DATE OF SUCH CERTIFICATE, (C) IF
THE SUM REQUESTED IS TO COVER PAYMENT RELATING TO REPAIR AND RESTORATION OF
PERSONAL PROPERTY REQUIRED OR RELATING TO THE PROJECT, THAT TITLE TO THE
PERSONAL PROPERTY ITEMS COVERED BY THE REQUEST FOR PAYMENT IS VESTED IN BORROWER
(UNLESS BORROWER IS LESSEE OF SUCH PERSONAL PROPERTY), AND (D) THAT THE
INSURANCE PROCEEDS AND OTHER AMOUNTS DEPOSITED BY BORROWER HELD BY LENDER AFTER
SUCH PAYMENT IS NOT LESS 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
58
LENDER'S REASONABLE DISCRETION, THAT BORROWER IS 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
SATISFACTORILY DONE TO DATE.
(IV)
EACH REQUEST FOR PAYMENT SHALL BE ACCOMPANIED BY BILLS AND INVOICES
COVERING THAT PART OF THE WORK FOR WHICH PAYMENT OR REIMBURSEMENT IS BEING
REQUESTED AND, IF REQUIRED BY LENDER, WAIVERS OF LIEN (WHICH MAY BE CONDITIONED
UPON PAYMENT), IN CUSTOMARY FORM AND SUBSTANCE, 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 PROJECT ANY MECHANIC'S
OR OTHER LIEN OR INSTRUMENT FOR RETENTION OF TITLE RELATING TO ANY PART OF THE
WORK NOT DISCHARGED OF RECORD. ADDITIONALLY,