14-20 Cedar Glen Bond Ordinance Addendums

Home Browse Search

funded, MBI shall have no obligation to disburse any portion of the Loan to pay accrued interest then due and payable on the Note. Section 15.15 Interest Begins Accruing at Time of Advancement. Borrower expressly agrees that interest shall accrue, at the rate of interest specified in the Note, on the principal amount of each advancement of the Loan from the time such advancement is made by MBI, whether advanced directly to Borrower, or to the Title Company, or to any other applicable third party to whom Borrower has requested the advancement be made. With respect to each Loan advancement made by wire transfer, the advancement shall be deemed to have been made when funds are wired by MBI regardless of when such Loan proceeds are actually received, or applied,by such party. Section 15.16 MBI's Right to Waive Advancement Procedures. Any of the advancement procedures or requirements set forth herein may be waived by MBI at the time of any advancement; however, any such waiver by MBI at the time of a particular advancement shall not be deemed or construed as a waiver of the right of MBI to require full compliance with all procedures and requirements with respect to any succeeding advancement. Section 15.17 Disbursement of Limited Partner's Equity. Borrower shall cause notice of all disbursements of Limited Partner's Equity to be promptly provided to MBI along with copies of any and all lien waivers provided to any Co-Maker and/or to Limited Partner. ARTICLE XVI. LOAN IN BALANCE Section 16.1 Loan in Balance. MBI shall have no obligation to make any advancement of the Loan at any time unless Borrower has contributed all Non-Contingent Required Equity toward the costs of the Project as shown on the Development Budget. The Non-Contingent Required Equity shall remain invested in the Project and Borrower shall not be entitled to any reimbursement for such equity funds from advancements of the Loan or otherwise until the Loan is paid in full or has been paid down to the Permanent Loan Amount. Borrower shall cause the Loan to be In-Balance at all times. If at any time MBI determines that the Loan is not In-Balance, then upon the demand of MBI, Borrower shall put the Loan In-Balance by depositing in a restricted account with MBI an amount equal to the amount MBI determines is needed to bring the Loan In-Balance, such amount to be held and disbursed as provided for in this Section. Borrower may not put the Loan In-Balance by amending the Development Budget to increase the Deferred Developer Fees unless such amendment is consented to in writing by MBI, provided MBI shall have no obligation to give any such consent and such consent may be withheld by MBI at its sole and absolute discretion. If required by MBI at any time after the occurrence of an Event of Default, Borrower shall also deposit, or cause to be deposited, with MBI in one or more restricted accounts the Contingent Required Equity which Borrower is to contribute toward the cost of the Project. All such amounts deposited with MBI pursuant to this Section shall be advanced to Borrower from time to time, pursuant to the same advancement procedures set forth in this Agreement for advancements of the Loan, to fund the remaining Unpaid Project Costs before any further advancements of the Loan shall be made. Until all Non-Contingent Required Equity and any other amounts required to be deposited with MBI pursuant to this Section have been paid or deposited with MBI and applied toward the payment of the Unpaid Project Costs,MBI shall not be required to make any further advances of the Loan. Page 56