200003557 - Laserfiche WebLink

Browse

20OU03557 materials installed and work and labor performed in connection with the Restoration (except to the extent that they are to be paid for out of the requested disbursement) have been paid for in full, and (B) there exist no notices of pendency, stop orders, mechanic's or materialman's liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Property arising out of the Restoration which have not either been fully bonded and discharged of record or, in the alternative, fully insured to the satisfaction of Lender by the title company insuring the lien of this Security Instrument. (ii) Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. (iii) Each disbursement shall be made in an amount equal to the costs actually incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term "Casualty Retainage" shall mean an amount equal to the greater of (A) ten percent (10 %) of the costs actually incurred for the work in place for which such disbursement if requested, as certified by the Casualty Consultant, or (B) the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. After such time as the Casualty Consultant certifies to Lender that fifty percent (50 %) of the required Restoration has been completed, no further Casualty Retainage will be reserved from disbursements of Net Proceeds. The Casualty Retainage collected prior to such time shall not be released until (A) the Casualty Consultant certifies to Lender that the Restoration has been substantially completed and all approvals necessary for the re- occupancy and use of the Property have been obtained from all appropriate governmental authorities, and (B) Lender receives evidence satisfactory to it that the costs of the Restoration have been paid in full or will be paid in full out of the Casualty Retainage. Lender, however, agrees to release portions of the Casualty Retainage prior thereto with respect to amounts due to a contractor, subcontractor or materialman for which (i) the Casualty Consultant shall have certified to Lender that such contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor's, subcontractor's or materialman's contract, and (ii) the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title company insuring the lien of this Security Instrument. If required by Lender, the release of any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. (iv) If during the course of Restoration, the undisbursed balance of the Net Proceeds and any Net Proceed Deficiency previously paid by Borrower shall not, in the opinion of Lender, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (also a "Net Proceeds Deficiency ") with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Subsection 3.8(d) shall constitute additional security for the Obligations. (v) The excess, if any, of the remaining balance of the Net Proceeds and Net Proceeds Deficiency deposited with Lender after (A) the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Subsection 3.8 and (B) Lender has received evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing under the Note, this Security Instrument or any of the Other Loan Documents. (vi) All Net Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant to Subsection 3.8(d)(v) shall be retained and applied by Lender toward the payment of the Debt whether or not then due and payable in such order, ATLANTA4181845.4 GMACCM (SLP) — DOT (8/98) 12 Grand Isle, Nebraska