14-20 Cedar Glen Bond Ordinance Addendums

Home Browse Search

Section 15.6 Conditions Relating to Uninstalled Materials. The advancements to which Borrower shall be entitled with respect to Uninstalled Materials shall be subject to such funding conditions as MBI may from time to time require in its sole reasonable discretion. Notwithstanding anything contained herein to the contrary, MBI shall have no obligation to advance more than One Hundred Thousand and 00/100 Dollars ($100,000.00) at any time for Uninstalled Materials. The funding conditions required by MBI for Uninstalled Materials may include, without limitation, the following: (i) that Borrower provides proof the Uninstalled Materials are fully insured in a manner acceptable to MBI, (ii)the Uninstalled Materials have been inspected by a third party acceptable to MBI, (iii) MBI has been furnished with satisfactory evidence that title to the Uninstalled Materials has been transferred to Borrower free and clear of all liens and security interests except the lien and security interest granted to MBI, (iv) the Uninstalled Materials are stored in a manner and at a location that provides for a level of security acceptable to MBI, (v)the amount of the Loan funded for any Uninstalled Materials may not include any costs for the installation of such Uninstalled Materials into the Project, and (vi) all Uninstalled Materials must be incorporated into the project within sixty (60) days of either the date Loan proceeds were advanced for such Uninstalled Materials, or sixty (60) days from the date the Uninstalled Materials were purchased by Borrower as an equity contribution by Borrower to the Project. MBI shall have the right from time to time to inspect any Uninstalled Materials until they are incorporated into the Project. Borrower shall reimburse MBI upon demand for all costs incurred in connection with inspection of Uninstalled Materials. Section 15.7 Retainage Requirements. MBI shall have the right, at its reasonable sole discretion, to require a ten percent (10%) retainage be withheld from advancements under the Loan for any construction cost. Any retainage reasonably required by MBI shall be funded upon the completion of the work, in a manner acceptable to MBI, of the construction item for which the retainage was required. Section 15.8 Advancements for Line Items. The Development Budget includes as line items the cost of all labor, materials, equipment, fixtures and furnishings needed for the completion of the construction or rehabilitation of the Improvements, and all other costs, fees and expenses relating in any way whatsoever to the development of the Project and the operation of the Project prior to the Target Completion Date. Borrower agrees that each advancement under the Loan shall be used only for the payment of those line item costs on the Development Budget for which the Draw Request specifically references. Except as specifically permitted in this Agreement, MBI shall not be obligated to make any advancements for any category of costs set forth as a line item on the Development Budget which is greater than the amount set forth for such category in the Development Budget. Except for the line item for the Interest Reserve and subject to MBI's prior consent (which consent shall not be unreasonably withheld, conditioned, or delayed), Borrower may apply savings from one category of line item costs on the Development Budget to cost overruns in another category of line item costs on the Development Budget or to the contingency fund line item on the Development Budget, or to any other unbudgeted cost, provided: (i)no Event of Default then exists hereunder, (ii) all costs to be paid out of the category of line item costs from which funds are being reallocated have been paid or sufficient sums remain in said line item to pay such costs when the same become due, or (iii) said savings are actual savings and are documented to the satisfaction of MBI and the Construction Consultant in their discretion. Section 15.9 Unsatisfactory Work. If the Construction Consultant or MBI shall determine that any Unsatisfactory Work has occurred, MBI shall be entitled to (i) withhold from advancements of the Loan such amounts which are intended to pay for the correction of the Unsatisfactory Work and (ii) require the construction work on such portion of the Improvements to be stopped until such time as MBI and the Construction Consultant are satisfied that the Unsatisfactory Work is corrected. No such action by MBI shall be deemed to affect Borrower's obligation to complete the Improvements on or before the Target Completion Date. MBI shall, subject to compliance by Borrower with all other applicable requirements of this Agreement, be required to make advancements of the Loan with respect to such Page 54