EXPENDITURES OR TENANT IMPROVEMENTS, BORROWER COVENANTS AND AGREES THAT
IMPROVEMENTS OR TENANT IMPROVEMENTS SHALL BE CONSTRUCTED, INSTALLED OR
COMPLETED, AS APPLICABLE, FREE AND CLEAR OF ANY AND ALL LIENS (INCLUDING
MECHANIC'S, MATERIALMAN'S OR OTHER LIENS), CLAIMS AND ENCUMBRANCES WHATSOEVER,
EXCEPT FOR A CONTESTED ITEM; AND
(L)
BORROWER SHALL PROVIDE SUCH ADDITIONAL
DOCUMENTS, CERTIFICATES AND AFFIDAVITS AS LENDER MAY REASONABLY REQUIRE.
3.3
ADVANCE NOT A WAIVER.
NO ADVANCE OF THE
PROCEEDS OF THE LOAN SHALL CONSTITUTE A WAIVER OF ANY OF THE CONDITIONS OF
LENDER'S OBLIGATION TO MAKE FURTHER ADVANCES, NOR, IN THE EVENT BORROWER IS
UNABLE TO SATISFY ANY SUCH CONDITION, SHALL ANY SUCH ADVANCE HAVE THE EFFECT OF
PRECLUDING LENDER FROM THEREAFTER DECLARING SUCH INABILITY TO BE AN EVENT OF
DEFAULT.
3.4
ADVANCE NOT AN APPROVAL.
THE MAKING OF ANY
ADVANCE OR PART THEREOF SHALL NOT BE DEEMED AN APPROVAL OR ACCEPTANCE BY LENDER
OF THE WORK THERETOFORE DONE.
LENDER SHALL HAVE NO OBLIGATION TO MAKE ANY
ADVANCE OR PART THEREOF AFTER THE HAPPENING AND DURING THE CONTINUANCE OF ANY
EVENT OF DEFAULT, BUT SHALL HAVE THE RIGHT AND OPTION SO TO DO; PROVIDED THAT IF
LENDER ELECTS TO MAKE ANY SUCH ADVANCE, NO SUCH ADVANCE SHALL BE DEEMED TO BE
EITHER A WAIVER OF THE RIGHT TO DEMAND PAYMENT OF THE LOAN, OR ANY PART THEREOF,
OR AN OBLIGATION TO MAKE ANY OTHER ADVANCE.
15
3.5
TIME AND PLACE OF ADVANCES.
ALL ADVANCES
ARE TO BE MADE AT THE OFFICE OF LENDER, OR AT SUCH OTHER PLACE AS LENDER MAY
DESIGNATE; AND LENDER SHALL REQUIRE TEN (10) DAYS PRIOR NOTICE IN WRITING BEFORE
THE MAKING OF ANY SUCH ADVANCE.
UNLESS SPECIFICALLY APPROVED BY LENDER, LENDER
SHALL NOT BE OBLIGATED TO UNDERTAKE ANY ADVANCE HEREUNDER MORE THAN TWICE IN ANY
30-DAY PERIOD.
EXCEPT AS SET FORTH IN THIS AGREEMENT, ALL ADVANCES ARE TO BE
MADE BY DIRECT DEPOSIT INTO THE SPECIAL ACCOUNT.
IN THE EVENT BORROWER SHALL IN
ANY MANNER BE DEPRIVED OF BORROWER'S INTERESTS IN AND TO THE LAND, LENDER MAY,
AT LENDER'S OPTION BUT WITHOUT ANY OBLIGATION TO DO SO, CONTINUE TO MAKE
ADVANCES UNDER THIS AGREEMENT, AND SUBJECT TO ALL ITS TERMS AND CONDITIONS, TO
SUCH PERSON OR PERSONS AS MAY SUCCEED TO BORROWER'S TITLE AND INTEREST AND ALL
SUMS SO DISBURSED SHALL BE DEEMED ADVANCES UNDER THIS AGREEMENT AND SECURED BY
THE LIEN INSTRUMENT AND ALL OTHER LIENS OR SECURITY INTERESTS SECURING THE LOAN.
3.6
NO THIRD PARTY BENEFICIARIES.
THE BENEFITS
OF THIS AGREEMENT SHALL NOT INURE TO ANY THIRD PARTY, NOR SHALL THIS AGREEMENT
BE CONSTRUED TO MAKE OR RENDER LENDER LIABLE TO ANY MATERIALMEN, SUBCONTRACTORS,
CONTRACTORS, LABORERS OR OTHERS FOR GOODS AND MATERIALS SUPPLIED OR WORK AND
LABOR FURNISHED IN CONNECTION WITH THE CONSTRUCTION OF THE IMPROVEMENTS OR FOR
DEBTS OR CLAIMS ACCRUING TO ANY SUCH PERSONS OR ENTITIES AGAINST BORROWER.
LENDER SHALL NOT BE LIABLE FOR THE MANNER IN WHICH ANY ADVANCES UNDER THIS
AGREEMENT MAY BE APPLIED BY BORROWER AND ANY OF BORROWER'S OTHER CONTRACTORS OR
SUBCONTRACTORS.
NOTWITHSTANDING ANYTHING CONTAINED