January 30, 2023

Construction Loan Agreement Template

Construction Loan Agreement Template. Lender shall not be obligated to disburse any amount for any category of costs set forth as a Budget Line Item which is larger than the amount set forth for such category within the relevant Budget Line Item. Each financial statement shall be certified as true, full and proper by its preparer and by the chief financial officer or chief accounting officer of Guarantor, or as to the annual statements of Guarantor, shall be audited and accompanied by an unqualified opinion of such accountant acceptable to the Agent. Borrower might every so often request that the Contingency Fund be reallocated to pay needed prices of the Project. Each Lender additionally acknowledges that it’ll, independently and without reliance upon the Agent or some other Lender, based upon such info and documents because it deems applicable on the time, proceed to make its own credit analysis and choices in taking or not taking action beneath this Agreement and the other Loan Documents.

Such UCC financing statements as Agent determines are advisable or necessary to good or notify third events of the safety pursuits intended to be created by the Loan Documents. Borrower isn’t a party in interest to any plan outlined or regulated underneath ERISA, and the assets of Borrower usually are not “plan assets” of any employee profit plan covered by ERISA or Section 4975 of the Internal Revenue Code. The Project may have enough water, gas and electrical provide (not lower than 18.2 megawatts of important load power), storm and sanitary sewerage amenities, other required public utilities, fireplace and police safety, and means of entry between the Project and public highways; none of the foregoing might be foreseeably delayed or impeded by virtue of any requirements under any relevant Laws.

Agent is hereby authorized, without any specific request or direction by Borrower, to make disbursements once in a while in cost of or to reimburse Agent for all Loan expenses and charges . A construction mortgage agreement is a authorized contract between the lender and borrower that outlines how a lot money will be lent to the borrower, for what purpose, when the funds might be repaid and some other stipulations. The agreements are usually drawn up earlier than work begins on a project to protect each events pursuits.

Development Mortgage Sample Clauses

Each Lender irrevocably waives its proper to file or pursue a separate proof of declare in any such proceedings except Agent fails to file such declare inside thirty days after receipt of written notice from the Lenders requesting that Agent file such proof of declare. Or therein, together with such other powers as are fairly incidental thereto, shall be approved and binding upon all Lenders, except for actions specifically requiring the approval of all Lenders. Each Lender shall reply promptly, but in any event within ten days after receipt of the request therefor from the Agent (the “Lender Reply Period”). Unless a Lender shall give written discover to the Agent that it objects to the recommendation or dedication of the Agent within the Lender Reply Period, such Lender shall be deemed to have accredited of or consented to such suggestion or dedication. With respect to choices requiring the approval of the Required Lenders or all Lenders, the Agent shall upon receiving the required approval or consent follow the course of action or determination beneficial to the Lenders by the Agent or such different plan of action really helpful by the Required Lenders. Changes within the scope of building work or to any construction related contract must be documented with a change order on the AIA Form G701 or equal type.

Each State has its own limits on rates of interest (called the “Usury Rate”) and mortgage sharks illegally charge greater than the allowed most price, although not all mortgage sharks follow illegally but instead deceitfully cost the best rate of interest legal under the law. Depending on the sum of money that is borrowed the lender might resolve to have the agreement authorized within the presence of a notary public. This is really helpful if the total quantity, principal plus curiosity, is more than the maximum acceptable rate for the small claims courtroom in the jurisdiction of the events (usually $5,000 or $10,000).

Construction Loan Agreement Template

Borrower shall pay as they turn into due all quantities set forth within the Budget with respect to prices to be paid for by Borrower. 7.7Right of Lender to Make Advances to Cure Borrower’s Defaults. In the occasion that Borrower fails to carry out any of Borrower’s covenants, agreements or obligations contained on this Agreement or any of the other Loan Documents , Agent may perform any of such covenants, agreements and obligations, and any quantities expended by Agent in so doing and shall represent further indebtedness evidenced by the Notes and secured by the Mortgage and the opposite Loan Documents and shall bear curiosity at the Default Rate. As of the date of this Agreement and after giving effect to the transactions contemplated by this Agreement and the opposite Loan Documents, together with all Loans made or to be made hereunder, the Borrower just isn’t insolvent on a stability sheet basis such that the sum of such Person’s assets exceeds the sum of such Person’s liabilities, the Borrower is ready to pay its money owed as they turn into due, and the Borrower has adequate capital to carry on its business. Other third party has performed or has ordered that Borrower conduct a remedial investigation, elimination or different response action pursuant to any Environmental Law; or that it is or shall be a named party to any declare, action, cause of action, grievance, or authorized or administrative proceeding arising out of any third party’s incurrence of costs, bills, losses or damages of any type whatsoever in reference to the release of Hazardous Substances, which in any case involves the Project. All monetary statements and other data beforehand furnished by Borrower or Guarantor to Agent in reference to the Loan are true, full and proper and fairly present the financial circumstances of the subjects thereof as of the respective dates thereof and do not fail to state any material fact necessary to make such statements or data not deceptive, and no Material Adverse Change with respect to Borrower or Guarantor has occurred since the respective dates of such statements and information.

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This Note shall be governed by the legal guidelines of the State of Illinois. In case an Event of Default shall occur, the whole principal amount of this Note may turn out to be or be declared due and payable in the manner and with the impact provided in stated Loan Agreement. Hereunder as an Agent, the provisions of this Article 25 shall proceed in effect for its profit in respect of any actions taken or omitted to be taken by it while it was appearing as an Agent hereunder and underneath the other Loan Documents. As quickly as practical Agent will promptly forward to each Lender copies of the Draw Request paperwork described in Sections 12.three, and , and trigger the Lender’s Consultant to ahead to every Lender a replica of the Lender’s Consultant’s most recent inspection. Delivery of the Draw Request paperwork and the Lender’s Consultant’s inspection report shall not be a condition to funding any Advance. Irrespective of the place of execution and/or supply, this Agreement shall be governed by, and shall be construed in accordance with, the legal guidelines of the State of Illinois.

Payment Plan

Borrower shall throughout regular business hours allow Agent or any of its brokers or representatives to have access to and study all of its books and records relating to the event and operation of the Project. Borrower agrees that the decision with respect to using portions of the Contingency Fund to be able to maintain the Loan “In Balance” shall be made by Agent in its cheap discretion, and that Agent might require Borrower to make a Deficiency Deposit even when funds remain within the Contingency Fund. Such other papers, materials and documents as Agent may require with respect to the Construction. The Loan shall be evidenced by separate promissory notes of the Borrower to each Lender in substantially the form of Exhibit C hooked up hereto and made a component hereof, dated of even date with this Agreement and completed with acceptable insertions. The principal quantity of the Loan shall not exceed the lesser of One Hundred Forty-Eight Million Eight Hundred Sixty-Four Thousand Three Hundred Thirty-Five and No/100 Dollars ($148,864,335.00), 55% of the Appraised Value of the Project as set out within the Appraisal, 65% of the whole value of the Project as set out within the Budget accredited by Agent hereunder, or such quantity as will lead to a “Debt Service Coverage Ratio” of no much less than 1.75 to 1.00 (based, for purposes of this calculation, on the “stabilized” Net Operating Income of the Project projected within the Appraisal permitted by the Lenders). All of the representations and warranties made by or on behalf of the Borrower or the Guarantor on this Agreement and the opposite Loan Documents or any doc or instrument delivered by or on behalf of Borrower or Guarantor to the Agent or the Lenders pursuant to or in connection with any of such Loan Documents are true and correct in all material respects, and not certainly one of the Borrower or the Guarantor has failed to disclose such info as is critical to make such representations and warranties not misleading.

THIS AMENDED AND RESTATED CONSTRUCTION LOAN AGREEMENT (“Agreement”) is made as of October 21, 2009, by and between CJUF II STRATUS BLOCK 21 LLC, a Delaware restricted legal responsibility company (“Borrower”), and BEAL BANK NEVADA, a Nevada thrift, its successors and assigns (“Lender”). THIS CONSTRUCTION LOAN AGREEMENT (the “Agreement”) is executed as of June 28, 2013, by and between FIFTH THIRD BANK, an Ohio banking company (“Lender”), GGT CRESCENT COOL SPRINGS TN VENTURE, LLC, a Delaware restricted liability company (“Borrower”), and CRESCENT COMMUNITIES, LLC, a Georgia limited legal responsibility firm (“Guarantor”). This Construction Loan Agreement is made and entered into effective as of this the tenth day of June, 2010 (the “Effective Date”) by and between UNITED DEVELOPMENT FUNDING IV, a real property funding belief organized beneath the legal guidelines of the state of Maryland (together with its successors and assigns, “Lender”), and CRESCENT ESTATES CUSTOM HOMES, LP, a Texas restricted partnership (“Borrower”). The undersigned Maker and all guarantors and endorsers hereby waive presentment, demand, notice, protest, discover of intention to speed up the indebtedness evidenced hereby, notice of acceleration of the indebtedness evidenced hereby and all different calls for and notices in reference to the delivery, acceptance, efficiency and enforcement of this Note, except as particularly in any other case provided within the Loan Agreement, and assent to extensions of time of cost or forbearance or different indulgence without notice.

Agent’s Special Counsel has solely represented Agent and KeyBank in connection with the Loan Documents and the only attorney shopper relationship or obligation of care is between Agent’s Special Counsel and Agent or KeyBank. Each Lender has been independently represented by separate counsel on all matters relating to the Loan Documents and the granting and perfecting of liens in the Collateral. 25.8Lender Actions Against Borrower or the Collateral. Each Lender agrees that it’s going to not take any motion, nor institute any actions or proceedings, in opposition to Borrower or any other person hereunder or under any other Loan Documents with respect to exercising claims in opposition to the Borrower or rights in any collateral without the consent of the Required Lenders.

Construction Loan Agreement Type

Within five enterprise days after Borrower acquires information of or receives notice of a defect within the Improvements or any departure from the Plans and Specifications, or some other requirement of this Agreement, Borrower will proceed with diligence to correct all such defects and departures. The stored supplies are bodily secured and can be included into the Project inside 45 days. Agent may require separate Uniform Commercial Code financing statements to cowl any such saved materials. Lender shall not be obligated to disburse any quantity for any class of costs set forth as a Budget Line Item which is bigger than the amount set forth for such category in the applicable Budget Line Item.

  • The bankruptcy or insolvency of the General Contractor and failure of Borrower to procure a contract with a model new contractor passable to Agent within thirty days from the occurrence of such bankruptcy or insolvency.
  • Any such disbursement, if made, shall be added to the excellent principal stability of the Notes and shall, when disbursed, bear interest on the Applicable Rate.
  • The Authorized Representative shall have the ability, in his discretion, to offer and receive all notices, monies, approvals, and other paperwork and instruments, and to take another action on behalf of Borrower.
  • Agent shall act because the contractual consultant of the Lenders hereunder, and notwithstanding the use of the time period “Agent”, it is understood and agreed that Agent shall not have any fiduciary duties or responsibilities to any Lender by reason of this Agreement or another Loan Document and is acting as an independent contractor, the duties and responsibilities of that are restricted to those expressly set forth in this Agreement and the other Loan Documents.

Agent and Lender reserve the proper to publicize the making of the Loan. Certified by a licensed public accountant moderately acceptable to Lender in format acceptable to Agent. Each monetary assertion shall be certified as true, full and correct by its preparer and by the chief financial officer or chief accounting officer of Guarantor, or as to the annual statements of Guarantor, shall be audited and accompanied by an unqualified opinion of such accountant acceptable to the Agent. Borrower shall furnish Agent its standard kind lease for tenant house contained within the Project. The maintenance by a Lender of reserves in accordance with reserve necessities promulgated by the Board of Governors of the Federal Reserve System of the United States with respect to “Eurocurrency Liabilities” of an identical term to that of the relevant portion of the Loan .