CONDOMINIUM CONVERSION AS CONTAINED IN THE PROJECT BUDGET.
PROVIDED NO
DEFAULT OR EVENT OF DEFAULT THEN EXISTS, LENDER WILL ALLOW MONTHLY ADVANCES OF
THE PRODUCTION OVERHEAD UP TO $16,333 PER MONTH UNTIL THE PRODUCTION OVERHEAD
LINE ITEM IS EXHAUSTED. THE AMOUNT OF THE REQUESTED ADVANCE SHALL NOT EXCEED THE
COST OF WORK IN PLACE AND OTHER AMOUNTS ACTUALLY PAID OR PAYABLE BY BORROWER FOR
PROJECT COSTS.
UPON CONFIRMATION OF ALL REQUIREMENTS SPECIFIED HEREIN AND UPON
RECEIPT OF THE TITLE INSURER'S COMMITMENT TO ISSUE A DATE DOWN TO THE TITLE
POLICY INSURING THE FUNDS ABOUT TO BE DISBURSED, LENDER SHALL WIRE TRANSFER THE
ADVANCE DIRECTLY TO BORROWER AT SUCH LOCATION AS BORROWER MAY DIRECT, WHO WILL
THEN DISBURSE DIRECTLY TO THE GENERAL CONTRACTORS OR SUBCONTRACTORS AS
APPLICABLE.
AFTER A DEFAULT OR EVENT OF DEFAULT, IF, IN LENDER'S REASONABLE
OPINION, ITS POSITION WILL BE IMPAIRED IF IT DOES NOT MAKE THE ADVANCE, LENDER
MAY (BUT SHALL NOT BE OBLIGATED TO MAKE) MAKE ADVANCES FROM ANY PROJECT BUDGET
CATEGORY (WHETHER OR NOT SUCH ADVANCES ARE CONSISTENT WITH THE PROJECT BUDGET)
TO OR FOR ANY OF THE FOLLOWING PARTIES OR PURPOSES:
(A) DIRECTLY TO ANY PERSON
OR PERSONS, INCLUDING LENDER, WHO IN LENDER'S REASONABLE JUDGMENT IS ENTITLED TO
PAYMENT FOR PROJECT COSTS, (B) FOR PAYMENT OR PERFORMANCE OF ANY OF BORROWER'S
SECURED OBLIGATIONS UNDER ANY OF THE LOAN DOCUMENTS, INCLUDING FEES, COSTS,
EXPENSES OWING TO LENDER OR ITS CONSULTANTS, OR (C) TO THE TITLE INSURER OR ANY
LIEN CLAIMANT FOR THE INDEMNITY OVER OR SETTLEMENT OF ANY CLAIM FOR LIEN OTHER
THAN A PERMITTED EXCEPTION.
LENDER MAY MAKE ADVANCES UNDER THE PRIOR SENTENCE
WITHOUT FURTHER AUTHORIZATION BY BORROWER, BUT LENDER WILL USE REASONABLE
EFFORTS TO GIVE BORROWER NOTICE OF SUCH AN ADVANCE WITHIN TEN (10) BUSINESS DAYS
AFTER MAKING SUCH AN ADVANCE.
LENDER'S FAILURE TO GIVE SUCH NOTICE SHALL NOT BE
REGARDED AS A DEFAULT BY LENDER OR IMPAIR ANY OF LENDER'S RIGHTS.
SUCH ADVANCES
SHALL BE TREATED AS AN ADVANCE OF THE LOAN AS SET FORTH IN SECTION 12.8 BELOW.
THIS PARAGRAPH SHALL NOT LIMIT LENDER'S RIGHTS TO MAKE ADVANCES UNDER OTHER
PROVISIONS OF THE LOAN DOCUMENTS.
(E)
BALANCING COMPLIANCE.
THE LOAN MUST BE IN BALANCE AS REQUIRED
UNDER SECTION 6.3 BELOW, AND THE LOAN PROCEEDS MUST BE FOR THE PURPOSES SET
FORTH IN AND MUST BE APPLIED IN COMPLIANCE WITH THE PROJECT BUDGET.
(F)
TITLE INSURANCE ENDORSEMENTS.
LENDER SHALL HAVE RECEIVED A
"DATEDOWN" ENDORSEMENT TO THE TITLE POLICY EXTENDING THE COVERAGE TO INCLUDE THE
DATE AND AMOUNT OF THE REQUESTED ADVANCE.
THE DATEDOWN ENDORSEMENT SHALL SHOW
NO EXCEPTIONS TO TITLE OTHER THAN THE PERMITTED EXCEPTIONS.
ANY NEW EXCEPTIONS
MUST BE APPROVED BY LENDER IN WRITING, ACTING REASONABLY.
UPON SUCH APPROVAL,
SUCH NEW EXCEPTION SHALL BE CONSIDERED A PERMITTED EXCEPTION.
14
Lender shall also be furnished a mechanic's lien endorsement to the Title Policy
in the form and substance acceptable to Lender.
(G)
NOI.
IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT BORROWER SHALL
USE ALL AVAILABLE NOI FROM THE PROJECT FOR PROJECT