10-25-01 11. DISBURSING AGREEMENT

Home Browse Search

complied with hereunder, including satisfaction of all applicable conditions precedent contained in Article II hereof,the Trustee shall make a disbursement to the Disbursing Agent in the amount of the requested disbursement, or such lesser amount as shall be approved, and the Disbursing Agent will disburse such funds in accordance with the terms of Article IV hereof. Section 3.02 Deposit of Funds by Borrower. If the Trustee or the Disbursing Agent shall at any time in good faith determine that the amount of funds then on deposit in Construction Account is less than the amount required to pay all Project Costs of any kind which reasonably may be anticipated in connection with the completion of the Project,the Borrower agrees that it will,within 10 calendar days of receipt of any such notice, deposit with the Disbursing Agent or the Trustee the amount of funds specified in the notice and shall authorize the Trustee and the Disbursing Agent to disburse such funds prior to disbursement of any additional Bond proceeds. Section 3.03 Excess Funds in Project Fund;Release. Excess funds in the Construction Account or the Costs of Issuance Account will be applied as provided in the Indenture. ARTICLE IV Obligations of the Disbursing Agent Section 4.01 Approval of Documents; Delivery of Funds to Disbursing Agent. The Borrower shall deliver to the Trustee and the Disbursing Agent each Draw Request,together with all such supporting documents related thereto. Not later than five business days following receipt of a Draw Request complying with the requirements hereof,the Disbursing Agent will orally notify the Trustee whether it has received lien waivers from all Contractors who were to have been paid out of the proceeds of the disbursement made in response to the last previous Draw Request. If any such lien waivers are missing,the Disbursing Agent will promptly advise the Trustee and the Borrower of the missing lien waivers. If the missing lien waivers are furnished, or if the Trustee is initially notified by the Disbursing Agent that all required lien waivers have been delivered to it, and all conditions precedent set forth in Articles II and III hereof have been satisfied,the Trustee shall transmit to the Disbursing Agent the amount of the disbursement applied for in the relevant Draw Request,or so much thereof as shall be approved and the Disbursing Agent will disburse such funds in accordance with Section 4.02 hereof. Section 4.02 Disbursement of Funds by Disbursing Agent. Upon receiving the funds transmitted to it pursuant to Section 3.01(c)hereof and subject always to contrary instructions from Trustee,the Disbursing Agent will pay each Contractor and other person identified in the relevant Draw Request(or the Borrower if permitted Project Costs have been paid previously by the Borrower)the amount shown therein or, if less,the amount approved by the Trustee. The Disbursing Agent will make each such payment conditional on the payee's acceptance of the payment constituting a waiver of all payee's mechanics' lien claims against the Project for work and materials paid for by such payment. Notwithstanding the foregoing,the Disbursing Agent shall make no disbursement for a Project Cost unless the Title Insurance Policy, or any endorsement thereto shall insure the priority of the lien of the Mortgage over all mechanics liens arising theretofore arising in connection with the Project. If, for any reason,any of said funds on deposit in the Disbursing Agent's account are not disbursed by the Disbursing Agent by the close of business on the seventh business day following credit of funds to its account,the Disbursing Agent will forthwith remit to the Trustee for credit to the subaccount from which such amounts were withdrawn, in immediately available funds,the amount of funds that were not so disbursed. The Disbursing Agent shall not be liable to the Borrower or the Trustee for interest on funds