WHICH THE REPAIR ESCROW DEPOSIT IS DEPOSITED.
(J)
"SCHEDULE OF WORK" MEANS THE SCHEDULE OF WORK FOR THE
REPAIRS ATTACHED TO THIS AGREEMENT AS EXHIBIT "B".
(K)
"SECURITY INSTRUMENT" MEANS THE MORTGAGE, DEED OF TRUST, DEED
TO SECURE DEBT, OR OTHER SIMILAR SECURITY INSTRUMENT ENCUMBERING THE PROPERTY
AND SECURING BORROWER'S PERFORMANCE OF ITS LOAN OBLIGATIONS.
2.
REPAIR ESCROW FUND.
(A)
ESTABLISHMENT.
LENDER ACKNOWLEDGES THAT BORROWER HAS
ESTABLISHED THE REPAIR ESCROW FUND BY DEPOSITING THE AMOUNT OF THE REPAIR ESCROW
DEPOSIT WITH LENDER.
BORROWER AND LENDER AGREE THAT ALL MONEYS DEPOSITED INTO
THE REPAIR ESCROW FUND SHALL BE HELD BY LENDER IN AN INTEREST BEARING ACCOUNT IF
LENDER ESTIMATES THAT THE REPAIRS WILL REQUIRE LONGER THAN NINETY (90) DAYS TO
COMPLETE.
LENDER SHALL NOT BE REQUIRED TO HOLD THE REPAIR ESCROW DEPOSIT IN AN
INTEREST BEARING ACCOUNT IF THE REPAIRS ARE REQUIRED TO BE COMPLETED IN NINETY
(90) DAYS OR LESS.
ANY INTEREST EARNED ON SUCH MONEYS SHALL BE ADDED TO THE
PRINCIPAL BALANCE OF THE REPAIR ESCROW FUND AND DISBURSED IN ACCORDANCE WITH THE
PROVISIONS OF THIS AGREEMENT.
LENDER SHALL BE ENTITLED TO DEDUCT FROM THE
REPAIR ESCROW FUND A ONE TIME FEE IN THE AMOUNT OF FIFTY AND 00/100 DOLLARS
($50.00) FOR ESTABLISHING THE REPAIR ESCROW FUND.
LENDER SHALL NOT BE
RESPONSIBLE FOR ANY LOSSES RESULTING FROM INVESTMENT OF MONEYS IN THE REPAIR
ESCROW FUND OR FOR OBTAINING ANY SPECIFIC LEVEL OR PERCENTAGE OF EARNINGS ON
SUCH INVESTMENT.
(B)
USE.
THE REPAIR ESCROW DEPOSIT SHALL, EXCEPT AS OTHERWISE
STATED IN THIS AGREEMENT, BE USED FOR THE PURPOSE OF PAYING, OR REIMBURSING
BORROWER FOR, THE COSTS OF THE REPAIRS.
3.
DISBURSEMENTS.
FROM TIME TO TIME, AS CONSTRUCTION AND
COMPLETION OF THE REPAIRS PROGRESSES, UPON BORROWER'S SUBMISSION OF A
DISBURSEMENT REQUEST IN THE FORM ATTACHED TO THIS AGREEMENT AS EXHIBIT C, AND
PROVIDED THAT BORROWER IS IN FULL COMPLIANCE WITH ALL THE APPLICABLE CONDITIONS
SET FORTH IN THIS AGREEMENT AND IN THE OTHER LOAN DOCUMENTS, LENDER SHALL MAKE
DISBURSEMENTS FROM THE REPAIR ESCROW FUND FOR PAYMENT OR REIMBURSEMENT OF THE
ACTUAL COSTS OF THE REPAIRS.
BORROWER MUST SIGN THE BORROWER'S DISBURSEMENT
REQUEST AND BORROWER MUST INCLUDE WITH ITS DISBURSEMENT REQUEST A REPORT SETTING
OUT THE PROGRESS OF THE REPAIRS AND ANY OTHER REPORTS OR INFORMATION RELATING TO
THE CONSTRUCTION OF THE REPAIRS THAT MAY BE REASONABLY REQUESTED BY LENDER.
BORROWER MUST INCLUDE WITH EACH DISBURSEMENT REQUEST COPIES OF ANY APPLICABLE
INVOICES AND/OR BILLS AND APPROPRIATE LIEN WAIVERS FOR THE PRIOR PERIOD FOR
WHICH DISBURSEMENT WAS MADE, EXECUTED BY ALL CONTRACTORS AND SUPPLIERS SUPPLYING
LABOR OR MATERIALS FOR THE REPAIRS.
UNLESS WAIVED BY LENDER IN WRITING,
BORROWER MUST ALSO INCLUDE A REPORT PREPARED BY THE PROFESSIONAL ENGINEER
EMPLOYED BY LENDER AS TO THE STATUS OF THE REPAIRS.
EXCEPT FOR THE FINAL
DISBURSEMENT REQUEST, NO DISBURSEMENT REQUEST SHALL BE FOR AN AMOUNT LESS THAN
THE MINIMUM DISBURSEMENT REQUEST AMOUNT.
4.
REPORTING REQUIREMENTS; COMPLETION.
PRIOR TO RECEIVING THE
FINAL DISBURSEMENT FROM THE REPAIR ESCROW FUND, BORROWER MUST DELIVER TO LENDER,
IN ADDITION TO THE