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CENTRAL CAROLINA ,.ANK AND TRUST COMPANY, NA 3NAL ASSOCIATION
<br />CONSTRUCTION LOAN AGREEMENT
<br />This day of 19 the undersigned, sometimes hereinafter referred to as the — Borrowef ex-
<br />pressly covenants with CENTRAL CAROLINA BANK AND TRUST COMPANY, NATIONAL ASSOCIATION, hereinafter referred to as die "Bank" and
<br />agrees In consideration of the granting of a loan by the Bank evidenced by a Note in the face anwunt of f of even date and
<br />secured by a Deed of Trust, to do and perform the following licit end things and comply with all the following provisions:
<br />1. To furnish the Bank with approved plans, specifications, building permits and any other required permits or special licenses, scale details and sratcuH:rus
<br />showing Itemized cost of proposed Improvements, said itemization to be based on contracts let wherever possible - otherwise on reasonable estimates.
<br />2. To cause all contracts for materials and labor furnished for the construction project to be subordinated to Bank's Deed of Trust; including the witiver opt
<br />any right to have, file or maintain mechanic's or materiatlmen's Bens against the premises described in said Deed of Trust.
<br />3. To conditionally assign to the Bank Borrower's interest In the general construction contract executed by the General Contractor, and other contracts required
<br />by the Bank, and the architecture contract, if any. Such assignments shall be acknowledged and approved by the contractors) and the Architect and such
<br />acknowledgements shall authorize the Bank to use the Plans in the event of an occurrence of an Event of Default by Borrower.
<br />4. To not, without the prior written approval of the Bank, terminate or cancel Its contracts or agreements with General Contractor or Architect, it an,. Im
<br />the providing of labor, services or materials In connection with the construction of the Improvements. Subsequent to the date of this Construction Lman Agree-
<br />ment, notice must be given to the Bank by Borrower of any contractors or architects contracted with by Borrower as substitutes for General Cumtrortnr
<br />or Architects, If any, or as additional general contractors, architects or project coordinators, and the Bank has the right to approve or disapprove such subsiku,
<br />Lion in its sole discretion and to require the submission of any additional loan documentation regarding such substitutes.
<br />5. To cause the construction of the Improvements to be carried on continuously, and to complete, free from all cs' liens, and in compliance with building
<br />restrictions and ordinances, within months from the date of the Note, the improvements in acc�' a respective plans and specilicatkm%
<br />submitted.
<br />5. To give the Bank the right, during construction of the Improvements, to Inspect, or employ of the Borrower's ex r construction cmisultant
<br />to Inspect the same and to reject and/or require to be replaced any material or workmanship that does not comp y pl, h specifications and
<br />to verify costs, value all existing Improvements In place, and estimate costs to complete All proposed improvements, It Is unde and agreed that an%
<br />Inspections made by the Bank shall be solely for the Bank's protection and the Bank shall not thereby Incur any liability w the under ed or to any third panies.
<br />7. To furnish a survey prior to the first disbursement of this loan by a surveyor satisfactory to the Bank, showing said buildings wholly within lines of the
<br />tract conveyed by the Deed of Trust and not In violation of any restrictive covemam or other ordinances or regulations.
<br />8. To furnish evidence the property, and the intended uses of the property arc In compliance with all applicable laws, covenants, regulations and urthnanecs.
<br />9. To obtain the approval of the Bank's attorney on all legal matters pertaining to the loan.
<br />10. To furnish insurance in amount, form and with companies satisfactory to the Bank, Including workman's compensation insurance.
<br />I I. To pay and secure releases of all encumbrances of record which in the opinion of the Bank are or will be prior or detrimental to it% security inerc.st
<br />12. To evidence this loan by a Note secured by a Deed of Trust drawn on Bank approved or standard Bank forms, together with such other required di clullents
<br />as are deemed necessary by the Bank,
<br />13. Upon the Bank's request, Borrower will execute and deliver, or cause to be executed and delivered, security agreements encumbering building ni:deriuls
<br />and equipment and other supporting documents that the Bands may from time to time require In connection therewith, including financing s(aenients and
<br />record searches under the Uniform Commercial Code.
<br />14. To be vested at closing with fee simple title to the property encumbered by the Deed of Trost and to furnish the Bards of closing with a title opinion by
<br />On attorney satisfactory to the Bank and title insurance commitment, describing the said property, with only such exceptions to clear tide as may be appntvcd
<br />by the Bank; and upon request to provide the Bank with a title insurance policy acceptable to the Bank.
<br />15, To pay all expenses Incurred In obtaining tide examinations, appraisals, surveys, preparation of rotes, deeds of trust, c41er documentation and art iety 1,t
<br />said documents by Bank's attorney whether or not The loan is actually made,
<br />16, To permit no commencement of any work or the delivery of any material until the Note and Deed of Trust have been executed and the Deed nl' Trust rca rrded.
<br />and until permission to stall work or deliver material has been given by the Bank. If delivery of materials or construction is In progress prior to the rcctnrdauion
<br />of the Deed of Trust, receipt of acceptable tide Insurance coverage specifically insuring the Bank against any loss or litigation costs arising from said deliver)
<br />of material or construction will be required prior to any disbursement of proceeds,
<br />17. The proceeds of this loan shall be disbursed no more frequently than once in a calendar month. The final draw shall be equivalent to at luasl :p'.i ml dte
<br />loan proceeds and advanced only upon completion of construction; and all proceeds may be advanced by check payable to the Borrower, ur• by dcprsa to
<br />Borrower's construction deposit account at The Bank, or according to a signed Bank form Construction Loan Disbursement Authorization.
<br />I8. To pay interest monthly on all funds disbursed to date.
<br />19. To furnish from time to time whenever requested, a statement showing an itemization of expenditures to date. Items due and unpaid, hems nccc>san for
<br />completion and IlcFm purchased whether or not stored on the job site in form satisfactory to Bank; and to support said statement with receipted hills, nllidif its.
<br />lien waivers and other satisfactory evidence of payments, cost estimates and/or contracts.
<br />20. Borrower agrees that If for any reason the remaining undisbursed loan balance shall, in Bank's opinion, be insufficient to pay all anuunls prewnd% duc "i
<br />and all amounts necessary to be incurred for the completion of the construction project, Borrower will within ten (10) days after request by the Bank. delntnsn
<br />the estimated deficiency with the Bank, which deposit shall be used first before any further disbursement of loan proceeds shall be made, or at llte Bank's
<br />option make such other provisions for the funding of the estimated deficiency as may be acceptable to the Bank.
<br />21. Borrower agrees that any funds advanced or deposited by Borrower or any person or entity other than Bank shall In all respect be subordinate in the lien
<br />of Bank's Construction Deed of Trust including without limiution amounts then outstanding and subsequently advanced, and further agrees that this pruvisk+u
<br />shall be immediately, completely, and continuously effective without further evidence, documentation, or action of any kind by any party to ihis apices nenu
<br />or otherwise.
<br />22. To use such funds as are disbursed pursuant to each loan for the payment of material bills, labor, and for other uses or purposes in and for the comirtctio n
<br />of the building or Improvements for which said loan has been made.
<br />23. The Bank shall not be obligated to make further advances on the loan if in its opinion the undersigned has not complied with all the provision, set 11,1111
<br />in this Construction loan Agreement or related documents. All advances made under the terms of Bank's Deed of Trust shall he deemed mhhgamr� tehcu
<br />made whether or not Bank shall have previously been relieved of its obligation to make further advances by reason of default by Borrower.
<br />24, To authorize the Bank at any time, without consent of the undersigned if in Bank's opinion it becomes necessary, to pay bills and /or complete any ihtiprut snarl >.
<br />using for such purposes the undisburscd net proceeds of the loan and any deposited funds, upon which the Bank shall have a first lien. Nothing citmaiuva
<br />herein shall In any way be construed as a covenant by the Bank to so pay or complete. Further, at Its option, Bank may make all loan dishursencnrs direetlr
<br />to the general contractor, any subcontractor, lahorer, material supplier, or any other entity providing labor, services or materials in conneclt1,n %tah the
<br />construction of any or all Improvement%: and the execution of this agreement by the Borrower shall, and hereby lines. constitute an irrevtrahle diteetittnn
<br />and authorization to so disburse the funds. Nn further direction nr audtorizatinn shall be necessary to warrant such direct dislenrsenicnl% will all such disbur,owin.
<br />t a i r t. " r^ 1 , •r.
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