AMOUNT.
2.5
LOAN LIMITATION.
IN THE EVENT THAT, AS A RESULT OF THE OCCURRENCE
OF A MATERIAL ADVERSE EFFECT, ANY APPRAISAL IS REQUIRED OR DESIRED BY LENDER, OR
ANY OTHER GOVERNMENTAL ENTITY OR QUASI-GOVERNMENTAL ENTITY WHICH HAS THE
AUTHORITY AND POWER TO REGULATE THE BUSINESS AND OTHER ACTIVITIES OF LENDER
("REGULATORY AUTHORITY"), BORROWER SHALL, WITHIN SIXTY (60) DAYS FOLLOWING A
REQUEST THEREFOR BY LENDER, FURNISH TO LENDER (AT BORROWER'S SOLE COST AND
EXPENSE) AN APPRAISAL IN FORM, SUBSTANCE AND BY AN APPRAISING FIRM REASONABLY
ACCEPTABLE TO LENDER AND, IF APPLICABLE, THE REGULATORY AUTHORITY REQUIRING SUCH
APPRAISAL PURSUANT TO THIS SECTION; PROVIDED THAT BORROWER SHALL NOT BE REQUIRED
TO FURNISH MORE THAN ONE (1) SUCH TEST APPRAISAL IN ANY CALENDAR YEAR.
IN THE
EVENT BORROWER SHOULD FAIL TO TIMELY PROVIDE AN ACCEPTABLE APPRAISAL OF THE
MORTGAGED PROPERTY AT BORROWER'S COST AND EXPENSE, LENDER SHALL FURTHER BE
ENTITLED, AT ANY TIME, TO OBTAIN AN APPRAISAL ON ITS OWN, AT BORROWER'S EXPENSE,
AND ANY SUCH APPRAISAL OBTAINED BY LENDER MAY BE UTILIZED BY LENDER (EVEN IN
LIEU OF OTHER AVAILABLE APPRAISALS) TO UNDERTAKE THE LOAN-TO-VALUE CALCULATIONS
DESCRIBED HEREIN.
2.6
BUDGETED RESERVES.
THE BUDGET SHALL REFLECT THAT, OF THE LOAN
AMOUNT, FUNDS MAY BE ADVANCED HEREUNDER FOR (I) CAPITAL EXPENDITURES, AND FOR
(II) TENANT IMPROVEMENT AND LEASING COMMISSIONS (THE "TENANT IMPROVEMENT/LEASING
COMMISSION COSTS").
THE CAPITAL EXPENDITURES AND TENANT IMPROVEMENT/LEASING
COMMISSION COSTS, AND THE COST ITEMS IN THE BUDGET THAT ARE NOT ADVANCED, MAY
HEREINAFTER BE REFERRED TO COLLECTIVELY AS THE "RESERVES".
THE AMOUNT IN EACH
OF THE RESERVE ACCOUNTS AND THE DISBURSAL OF FUNDS FROM EACH OF THE RESERVE
ACCOUNTS IS SUBJECT TO THE APPROVAL OF THE LENDER AS SET FORTH HEREIN.
9
ARTICLE III
ADVANCES
3.1
CONDITIONS TO ADVANCE.
THE OBLIGATION OF
LENDER TO MAKE THE INITIAL ADVANCE HEREUNDER, IS SUBJECT TO THE PRIOR OR
SIMULTANEOUS OCCURRENCE OF EACH OF THE FOLLOWING CONDITIONS:
(A)
LENDER SHALL HAVE RECEIVED FROM BORROWER
ALL OF THE LOAN DOCUMENTS DULY EXECUTED BY BORROWER AND BY GUARANTOR, AS
APPLICABLE;
(B)
LENDER SHALL HAVE RECEIVED CERTIFIED COPIES
OF RESOLUTIONS OF BORROWER, IF BORROWER IS A CORPORATION, OR A CERTIFIED COPY OF
A CONSENT OF PARTNERS OR MEMBERS, IF BORROWER IS A PARTNERSHIP OR LIMITED
LIABILITY COMPANY, AUTHORIZING EXECUTION, DELIVERY AND PERFORMANCE OF ALL OF THE
LOAN DOCUMENTS AND AUTHORIZING THE BORROWING HEREUNDER, ALONG WITH SUCH
CERTIFICATES OF EXISTENCE, CERTIFICATES OF GOOD STANDING AND OTHER CERTIFICATES
OR DOCUMENTS AS LENDER MAY REASONABLY REQUIRE TO EVIDENCE BORROWER'S AUTHORITY;
(C)
LENDER SHALL HAVE RECEIVED (I) TRUE COPIES
OF ALL ORGANIZATIONAL DOCUMENTS OF BORROWER, INCLUDING ALL AMENDMENTS OR
SUPPLEMENTS THERETO, (II) IF BORROWER IS A LEGAL ENTITY OTHER THAN A
CORPORATION, TRUE COPIES OF ALL ORGANIZATIONAL DOCUMENTS OF ANY CONSTITUENT
PARTY, AND (III) SUCH CERTIFICATES OR OTHER DOCUMENTS AS LENDER MAY REASONABLY
REQUIRE TO EVIDENCE BORROWER'S AUTHORITY;
(D)
LENDER SHALL HAVE RECEIVED EVIDENCE THAT THE
MORTGAGED PROPERTY IS NOT LOCATED WITHIN ANY DESIGNATED FLOOD PLAIN OR SPECIAL
FLOOD HAZARD AREA; OR EVIDENCE THAT BORROWER HAS APPLIED FOR AND RECEIVED FLOOD
INSURANCE COVERING