SINGLE RESERVE ITEM, LENDER MAY REQUIRE AN INSPECTION OF THE PROPERTY (OF WHICH
BORROWER SHALL BE RESPONSIBLE FOR THE COSTS OF ANY SUCH INSPECTION, SO LONG AS
SUCH FEE DOES NOT EXCEED $1,000), PERFORMED AT BORROWER'S EXPENSE, TO VERIFY
COMPLETION THEREOF.
(G)
ABSENCE OF LIENS.
LENDER MAY REQUIRE THAT
BORROWER PROVIDE LENDER WITH ANY OR ALL OF THE FOLLOWING:
(I) A WRITTEN LIEN
WAIVER ACCEPTABLE TO LENDER FROM EACH PARTY TO BE PAID WHO IS TO RECEIVE PAYMENT
OF $50,000 OR MORE IN CONNECTION WITH THE DISBURSEMENT REQUEST; (II) A SEARCH OF
TITLE TO THE PROPERTY EFFECTIVE TO THE DATE OF THE DISBURSEMENT WHICH SHOWS NO
LIENS OTHER THAN THE PERMITTED ENCUMBRANCES; OR (III) AN ENDORSEMENT TO THE
TITLE INSURANCE POLICY WHICH UPDATES THE EFFECTIVE DATE OF SUCH POLICY TO THE
DATE OF THE DISBURSEMENT AND SHOWS NO LIENS OTHER THAN THE PERMITTED
ENCUMBRANCES.
(H)
PAYMENT OF LENDER'S EXPENSES.
BORROWER
SHALL PAY ALL REASONABLE EXPENSES INCURRED BY LENDER IN PROCESSING BORROWER'S
DISBURSEMENT REQUEST INCLUDING, WITHOUT LIMITATION, ANY INSPECTION COSTS
(WHETHER PERFORMED BY LENDER OR AN INDEPENDENT INSPECTOR SELECTED BY LENDER)
INCURRED IN ACCORDANCE WITH SECTION 5.01(F) AND REASONABLE LEGAL FEES AND
EXPENSES.
(I)
OTHER ITEMS LENDER DEEMS NECESSARY.
LENDER SHALL HAVE RECEIVED SUCH OTHER EVIDENCE AS LENDER REASONABLY REQUESTS IN
CONNECTION WITH ITS CONFIRMATION THAT EACH RESERVE ITEM TO BE PAID IN CONNECTION
WITH THE DISBURSEMENT REQUEST HAS BEEN COMPLETED OR PERFORMED IN ACCORDANCE WITH
THE TERMS OF THIS LOAN AGREEMENT.
Section 5.02
Waiver of Conditions to
Disbursement.
No waiver given by Lender of any condition precedent to
disbursement from a Reserve Account shall preclude Lender from requiring that
such condition be satisfied prior to making any other disbursement from a
Reserve Account.
Section 5.03
Direct Payments to Suppliers and
Contractors.
Lender, at its option, may make disbursements directly to the
supplier or contractor to be paid in connection with the Disbursement Request.
Borrower's execution of this Loan Agreement constitutes an irrevocable direction
and authorization for Lender to make requested payments directly to the supplier
or contractor, notwithstanding any contrary instructions from Borrower or notice
from Borrower of a dispute with such supplier or contractor.
Each disbursement
so made by Lender shall satisfy Lender's obligation under this Loan Agreement.
If requested by Borrower any disbursement to any one supplier or contractor
which is in excess of $50,000 may be paid directly by Lender to such supplier or
contractor.
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Section 5.04
Performance of Reserve Items.
(A)
PERFORMANCE OF RESERVE ITEMS.
BORROWER
AGREES TO COMMENCE EACH RESERVE ITEM BY ITS REQUIRED COMMENCEMENT DATE STATED ON
THE APPLICABLE EXHIBIT TO THIS LOAN AGREEMENT IDENTIFYING SUCH RESERVE ITEM AND
TO PURSUE COMPLETION DILIGENTLY OF EACH RESERVE ITEM ON OR BEFORE ITS COMPLETION
DATE STATED ON SUCH EXHIBIT AND, IN THE ABSENCE OF A COMMENCEMENT DATE OR
COMPLETION DATE BEING SPECIFIED, WHEN NECESSARY IN ORDER TO KEEP THE PROPERTY IN
GOOD ORDER AND REPAIR, IN A GOOD AND MARKETABLE CONDITION AND AS NECESSARY TO
KEEP ANY PORTION THEREOF FROM DETERIORATING, OR IN THE