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
PROPERTY, 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/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
57
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