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CENTRAL CAROLINA , ANK AND TRUST COMPANY, NA 3NAL ASSOCIATION 15
<br />CONSTRUCTION LOAN AGREEMENT
<br />day of 19 the undersigned, sometimes hereinafter referred to as the •' Borrnw'ct ", e•-
<br />This `� y
<br />p=sly covenants with CENTRAL CAROLINA BANK AND TRUST COMPANY, NATIONAL ASSOCIATION, hereinafter referred to as of die even adate urai
<br />agrees in consideration of the granting of a loan by the Bank evidenced by a Note in the face amount of S
<br />secured by a Deed of Trust, to do and perform the following acts and things and comply with all the following provisions:
<br />1- To furnish the Bank with approved plans, specifications, building pef nits and any other required permits or special licenses, scale details and statemens
<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 waiver of
<br />any right to have, file or maintain mechanic's or materielmen's liens against the premises described in said Deed of Trost.
<br />3. To conditionally assign to the Bank Borrower's interest in the general construction contract executed by the General Contractor, and other contracts rc.piired
<br />ack owl
<br />acknowledgements shall authorize the Bank to use thehPlsans n the event of an occurrence of an Event of Default byaBorr(ower� the Architect and .oche
<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 ,n.'. It"
<br />the providing of labor, services of materials in connection with the construction of the improvements. Subsequent to the date of this Construction U ian Agi v,
<br />ment, notice must be given to the Bank by Borrower of any contractors or architects contracted with by Borrower as substitutes for General Ctnnracu +r
<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 <uh.nru
<br />tion in its sole discretion and to require the submission of any additional Wan documentation regarding such substitutes.
<br />5. To cause the construction of the improvements to be carried on continuously, and to complete, free from alep�,
<br />s' liens, and incompliance with huddu+g
<br />restrictions and ordinances, within months from the date of the Note, the improvements in acc respective plans and spxilicallom
<br />submitted.
<br />construction consultant
<br />6. To give the Bank the right, during construction of the improvements, W inspect, or employ at the Borrower's ex s itications and
<br />to inspect the same and to reject and /or require to be replaced any material or workmanship that does not c l Pu
<br />to verify costs, value all existing improvements in place, and estimate costs to complete all proposed improvements. It is uncle 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 to the under d or to any third panics.
<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 lincs +1 the
<br />tract conveyed by the Deed of Trust and not in violation of any restrictive covenant or other ordinances or regulations.
<br />8. To furnish evidence the property, and the intended uses of the property are in compliance with all applicable laws, covenants, regulations and ordmanc�,
<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 insurnce.
<br />11, 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 its security uncrr>r
<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 (Itwuiucm,
<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 m, tcnal.
<br />and equipment and other supporting documents that the Bank may from time to nine require in connection therewith, including financing statements 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 Trust and to furnish the Bank at closing with a title opurion h
<br />an attorney satisfactory to the Bank and title insurance commitment, describing the said property, with only such exceptions to clear title as may be approved
<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 title examinations, appraisals, surveys, preparation of rotes, deeds of trust, other documentation and iv, icw nl
<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 of Trust rcuvded,
<br />and until permission to start work or deliver material has been given by the Bank• if delivery of materials or construction is in progress prior to the race rd;nion
<br />of the Deed of Trust, receipt of acceptable title insurance coverage specifically insuring the Bank against any loss or litigation costs arising from said dvlivcrN
<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 least NY,; nl dre
<br />loan proceeds and advanced only upon completion of construction; and all proceeds may be advanced by check payable to the Borrower, nr by dclv+•.11 tit
<br />Borrower's construction deposit account at the Bank, or according to a signed Bank form Construction Loan Disbursement Authorization.
<br />18. To pay interest monthly on all funds disbursed to date.
<br />19. To furnish from time to time whenever requested, a statement slowing an itemization of expenditures to date, items due and unpaid, items nccc-ill
<br />completion and items purchased whether or not stored on the job site in form satisfactory to Bank; and to support said statement with receipted hills, al ida� il•.
<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 amounts pre..cnd) due
<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. dcls +sin
<br />the estimated deficiency with the Bank, which deposit shall be used first before any further disbursement of loan proceeds shall be made, oral the 1111111,
<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 tit the hull
<br />of Bank's Construction feed ofTrost including without limitation amounts then outstanding and subsequently advanced, and further agrees that this I+nwkilm
<br />shall be immediately, completely, and continuously effective without further evidence, documentation, or action of any kind by any party to this agrccmct+t
<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 con.erucu-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, Ict Iinih
<br />in made swhenther oronot Bank Agreement s ave previously beenere relieved of its obligation under the
<br />make terms
<br />furUur advances Dby reason f default by Borrower. tt1't ` 1111+
<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 ardor complete any imprl+, er++crtt> .
<br />using for such purposes the undisburscd rice proceeds of the loan and any deposited funds, upon which the Bank shall have a first lien. Nothing ct trained
<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 disbursement, d+rcctl)
<br />to the general contractor, any subcontractor, laborer, material supplier, or any other entity providing labor, services or materials in connection wnlr dre
<br />construction of any or all improvements; and the execution of this agreement by the Borrower shall, and hereby does, constitute an irrevtnable dineunn
<br />and authorization to so disburse die funds. No further direction or authorization shall be recessary to warrard such direct disbursements and all arch di.lvtrwriwil1.
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