(OR PORTIONS THEREOF).
SUBJECT TO SECTION 2.1(B)(VII), ADVANCES MAY BE
MADE FOR ADVANCE DEPOSITS FOR MATERIAL TO BE INCLUDED IN THE PROJECT ("ADVANCE
DEPOSITS").
ADVANCES FOR HARD COSTS WITH RESPECT TO A TRADE OR ANY PORTION OF
CONSTRUCTION COVERED BY ANY OF THE LINE ITEMS (OR PORTIONS THEREOF) IN THE
PROJECT BUDGET SHALL NOT EXCEED:
(A)
THE TOTAL HARD COSTS AS SET FORTH AS A LINE ITEM (OR PORTION
THEREOF) IN THE PROJECT BUDGET TO PERFORM AND COMPLETE THE TRADE OR PORTION OF
CONSTRUCTION COVERED BY SUCH LINE ITEM, MULTIPLIED BY THE STAGE OF COMPLETION OF
SUCH TRADE OR PORTION OF CONSTRUCTION (EXPRESSED AS A PERCENTAGE) AS DETERMINED
BY THE ARCHITECT AND AGREED TO BY THE CONSTRUCTION CONSULTANT; LESS
(B)
ANY RETAINAGE WITH RESPECT TO SUCH LINE ITEM, IF WITHHELD PURSUANT
TO THE TERMS HEREOF, AND THE AMOUNTS PREVIOUSLY ADVANCED FOR SUCH HARD COSTS AS
SET FORTH IN SUCH LINE ITEM.
(II)
ADVANCES FOR SOFT COSTS.
NO ADVANCE WILL BE MADE FOR ANY SOFT
COSTS UNLESS (A) SUCH SOFT COSTS ARE SET FORTH IN THE PROJECT BUDGET AS A
PORTION OF THE PROJECT COSTS AS REASONABLY DETERMINED BY THE ARCHITECT AND
AGREED TO BY THE CONSTRUCTION CONSULTANT AND (B) AGENT HAS RECEIVED EVIDENCE
REASONABLY SATISFACTORY TO AGENT THAT SUCH SOFT COSTS ARE THEN DUE AND PAYABLE.
(III)
FORM OF ADVANCE REQUEST.
EACH ADVANCE REQUEST DELIVERED BY
BORROWER SHALL CONSTITUTE BORROWER'S REPRESENTATION AND WARRANTY TO AGENT AND
LENDERS THAT:
(A)
ANY COMPLETED CONSTRUCTION FOR WHICH THE ADVANCE IS BEING REQUESTED
IS SUBSTANTIALLY IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS;
(B)
ALL COSTS FOR THE PAYMENT OF WHICH THE AGENT AND LENDERS
PREVIOUSLY ADVANCED FUNDS HAVE IN FACT BEEN PAID TO THE CONTRACT PARTY WITH WHOM
BORROWER IS IN PRIVITY OR ARE BEING HELD IN ESCROW BY THE TITLE COMPANY;
30
(C)
ALL THE REPRESENTATIONS AND WARRANTIES OF EACH LOAN PARTY
CONTAINED IN THE LOAN DOCUMENTS WERE TRUE, CORRECT AND COMPLETE AS OF THE DATE
OF EXECUTION OF THE AGREEMENT, AND IN ALL MATERIAL RESPECTS AS OF THE DATE OF
ANY PREVIOUS ADVANCE AND CONTINUE TO BE TRUE AND CORRECT IN ALL MATERIAL
RESPECTS AS OF THE DATE OF SUCH ADVANCE REQUEST (EXCEPT TO THE EXTENT THAT SUCH
REPRESENTATION OR WARRANTY EXPRESSLY RELATES TO AN EARLIER DATE IN WHICH CASE IT
SHALL BE TRUE AS OF SUCH EARLIER DATE); AND
(D)
NO DEFAULT OR EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE
CONTINUING HEREUNDER.
(IV)
ADVANCE REQUEST REQUIRED DOCUMENTATION.
EACH REQUEST FOR AN
ADVANCE SHALL BE IN ACCORDANCE WITH THE DISBURSEMENT SCHEDULE, IN ALL MATERIAL
RESPECTS, AND SHALL BE ACCOMPANIED BY THE FOLLOWING:
(A)
AN EXECUTED ADVANCE REQUEST AND BORROWER ADVANCE CERTIFICATION;
(B)
WITH RESPECT TO ANY ADVANCE REQUEST THAT INCLUDES HARD COSTS, A
COMPLETED AND ITEMIZED APPLICATION AND CERTIFICATE FOR PAYMENT (AIA DOCUMENT NO.
G702) OR SIMILAR FORM APPROVED BY AGENT, TOGETHER WITH INVOICES RELATING TO ALL
ITEMS OF PROJECT COSTS FOR THE PROJECT IN EXCESS OF $10,000 COVERED THEREBY AND
ACCOMPANIED BY A COST BREAKDOWN SHOWING THE COST OF