Laserfiche WebLink
Unsatisfactory Work only after the Construction Consultant and MBI shall have determined that the work <br /> which had been identified as Unsatisfactory Work has been corrected to the satisfaction of the <br /> Construction Consultant and MBI. <br /> Section 15.10 Advancement Account, Other Advancement Requirements. Unless otherwise <br /> permitted by MBI, the advancements of the Loan shall be made by MBI to a special account maintained <br /> by Borrower with MBI for the receipt and disbursement of the proceeds of the Loan. MBI may, at its <br /> discretion, require that payments to the general contractor which relate to any work performed by any <br /> subcontractor be made by checks payable jointly to the general contractor and each such subcontractor <br /> that MBI designates. In addition, MBI may, at its discretion, require that all or any disbursements of the <br /> Loan be funded through a title insurance company with the title insurance company making payment <br /> directly to the parties who are to be paid from the proceeds of such advancement. <br /> Section 15.11 Limitation on Total Amount Advanced. Anything contained herein to the <br /> contrary notwithstanding, it is stipulated and agreed that MBI shall not be obligated to advance under the <br /> Loan more than the lesser of(i)the total principal amount of the Loan, or(ii)the total of(A) the costs as <br /> shown on the Development Budget which are actually incurred by Borrower minus (B) the amount from <br /> time to time of the Non-Contingent Required Equity minus (C) the from time to time advanced portions <br /> of the Other Available Sources of Funds. <br /> Section 15.12 MBI's Right to Advance without Borrower Request. MBI, without a request <br /> from Borrower, shall have the right, but not the obligation, from time to time to advance funds under the <br /> Loan to pay (i) any amounts owed by Borrower under the Loan, including, but not limited to, interest <br /> accrued on the Loan and any fees and expenses for which Borrower is obligated to reimburse MBI <br /> pursuant to the terms of this Agreement or any other Loan Document, (ii) any costs, premiums, fees, <br /> expenses, or other charges incurred in connection with the Loan,the Bonds or the Project which Borrower <br /> has agreed to pay pursuant to the terms of this Agreement or any other Loan Document, including without <br /> limitation real estate taxes and insurance premiums, and (iii) any other cost, expense or charge for which <br /> Borrower's failure to pay has created an Event of Default under this Agreement or under any of the other <br /> Loan Documents. In each such instance, the funds so advanced by MBI shall be paid directly to such <br /> other party to whom payment is owed, and evidenced by the Note and secured by the Loan Documents to <br /> the same effect as if such funds had been advanced directly to Borrower and MBI shall promptly provide <br /> Borrower with written notice after each such advance,if any. <br /> Section 15.13 [This paragraph is intentionally left blank]. <br /> Section 15.14 Disbursement of Interest Reserve. The amount of the Loan was determined on <br /> the basis of the Development Budget approved by MBI, setting forth, among other things, the estimated <br /> accrued interest on the disbursed principal of the Note during the term of the Loan. Subject to the <br /> satisfaction of all terms and conditions in this Agreement for the advancement of proceeds of the Loan <br /> (including without limitation the conditions set forth in Section 4.1 and Section 5.1), Borrower shall be <br /> entitled to advancements of the Loan to pay interest as it accrues on the Loan up to the Interest Reserve <br /> Amount. Borrower hereby authorizes MBI to disburse on each day when interest is due and payable <br /> under the Note a portion of the Loan sufficient to pay accrued interest then due and payable on the Note, <br /> and the amount thereof shall increase the principal of the Note outstanding and shall reduce the balance of <br /> the Interest Reserve Amount. In lieu of disbursing Loan proceeds to Borrower for payment of accrued <br /> interest thereon, MBI may handle such disbursement and payment by making appropriate entries on the <br /> books and records of MBI. MBI shall have no obligation to disburse the Interest Reserve Amount (i) if <br /> any condition set forth in this Agreement for the advancement of proceeds of the Loan has not been <br /> satisfied or(ii) during any period in which there exists an Event of Default. Notwithstanding anything to <br /> the contrary contained in this Agreement, at such time as the Interest Reserve Amount has been fully <br /> Page 55 <br />