will be endorsed using a Mechanic's Lien Endorsement acceptable to
Lender reflecting the amount actually disbursed plus the amount of the Revolving
Credit Loan Commitment.
Further, a disbursement advisor acceptable to Lender in
its sole discretion shall be retained at Borrower's cost for the purpose of
monitoring all disbursements.
(E)
RESTATEMENT.
EACH REQUEST FOR AN ADVANCE
BY BORROWER SHALL CONSTITUTE AN AFFIRMATION THAT THE WARRANTIES AND
REPRESENTATIONS CONTAINED IN SECTION 4 OF THIS AGREEMENT REMAIN TRUE AND CORRECT
IN ALL MATERIAL RESPECTS AND THAT NO BREACH OF THE COVENANTS CONTAINED IN
SECTION 7 OF THIS AGREEMENT HAS OCCURRED AS OF THE DATE OF THE ADVANCE, UNLESS
LENDER IS NOTIFIED TO THE CONTRARY PRIOR TO THE DISBURSEMENT OF THE REQUESTED
ADVANCE.
(F)
FINAL DISBURSEMENT. THE FINAL
DISBURSEMENT OF CONSTRUCTION/TERM LOAN PROCEEDS SHALL NOT BE MADE UNTIL LENDER
HAS RECEIVED ADVICE FROM THE INSPECTING ENGINEER THAT THE PROJECT IS COMPLETE
AND BORROWER HAS DELIVERED OR CAUSED TO BE DELIVERED TO LENDER (IN ADDITION TO
ALL FOREGOING REQUIREMENTS) ALL IN FORM AND CONTENT ACCEPTABLE TO LENDER:
(A) EVIDENCE THAT THE PUBLIC AUTHORITIES HAVING JURISDICTION OVER THE PROJECT
HAVE APPROVED THE PROJECT IN ITS ENTIRETY FOR PERMANENT OCCUPANCY TO THE EXTENT
ANY SUCH APPROVAL IS A CONDITION OF THE LAWFUL USE AND
47
OCCUPANCY OF THE PROJECT; (B) A CONFIRMATION OF FINAL COMPLETION OF THE PROJECT
FROM THE INSPECTING ENGINEER; (C) EVIDENCE OF THE INSURANCE REQUIRED HEREIN;
(D) AN ENDORSEMENT FROM THE TITLE COMPANY FOR THE FULL AMOUNT OF THE
CONSTRUCTION/TERM LOAN, WITH NO EXCEPTIONS FOR UNRECORDED MECHANICS' AND
MATERIALMEN'S LIENS; AND (E) EVIDENCE THAT THE PROJECT GENERAL CONTRACTOR AND
ALL SUBCONTRACTORS, SUPPLIERS AND MATERIALMEN WILL BE FULLY PAID, WITH RESPECT
TO WORK AND MATERIALS SUPPLIED WITH RESPECT TO SAID BUILDING OR PHASE, OUT OF
SUCH FINAL ADVANCE.
(G)
APPLICATION OF FUNDS.
UPON THE OCCURRENCE
OF AN EVENT OF DEFAULT, LENDER, IN ITS SOLE DISCRETION, MAY ADVANCE SUCH AMOUNTS
TO SATISFY ANY OF BORROWER'S OBLIGATIONS, AND ALL AMOUNTS SO ADVANCED AND
APPLIED SHALL BE PART OF THE LOANS AND SHALL BE SECURED BY THE LEASEHOLD
MORTGAGE.
6.2
PROJECT ADDITION DISBURSEMENTS.
(A)
REQUEST FOR DISBURSEMENT.
REQUESTS FOR
DISBURSEMENTS FROM THE PROJECT ADDITION ESCROW ACCOUNT (EACH A "DISBURSEMENT")
MAY NOT BE SUBMITTED MORE FREQUENTLY THAN MONTHLY AND MUST CONTAIN THE
FOLLOWING:
(I)
A REQUEST FOR A DISBURSEMENT FROM THE
PROJECT ADDITION ESCROW ACCOUNT EXECUTED BY BORROWER FOR CONSTRUCTION OF THE
PROJECT IN THE FORM OF EXHIBIT H, BORROWER'S AFFIDAVIT AND REQUEST FOR
DISBURSEMENT, AND CONTRACTOR'S REQUEST FOR DISBURSEMENT ACCOMPANIED BY
APPROPRIATE SCHEDULE A'S, INCLUDING AIA DOCUMENT NOS. G702 AND G703, SIGNED BY
BORROWER AND THE PROJECT ADDITION GENERAL CONTRACTOR.
SUCH REQUEST SHALL ONLY
INCLUDE VERIFIED PROJECT ADDITION COSTS, EXCEPT AS EXPRESSLY SET FORTH HEREIN,
OF WORK DONE OR MATERIALS INCORPORATED INTO THE PROJECT ADDITION BETWEEN THE
NEXT PRECEDING DISBURSEMENT AND THE DISBURSEMENT BEING APPLIED FOR (OR OTHER
PROJECT ADDITION COSTS APPROVED BY LENDER AND NOT THERETOFORE THE SUBJECT OF A
DISBURSEMENT).
(II)
LIEN WAIVERS IN FORM ACCEPTABLE TO LENDER,
FROM THE PROJECT ADDITION GENERAL CONTRACTOR