3.5 EDSR 11-21-2016 - Laserfiche WebLink

Home Browse Search

2. Construction of Improvements. For the purposes of this Agreement, the term "Loan Property" means the real estate described in the Mortgage together with all improvements now located or hereafter placed thereon. Borrower agrees to improve as a part of the Loan Property a project ("Project") consisting generally of renovations to and equipping of the building located at 707 Main Street, Elk River, Minnesota, substantially in accordance with plans and specifications which have been provided to Lender. The improvements to and equipping of the Loan Property contemplated by the plans and specifications, as the same may be changed with the approval of Lender, are herein referred to as the "Improvements." Borrower covenants that when completed, the Improvements shall comply with all applicable restrictions, conditions, codes, ordinances, regulations and laws of the City of Elk River ("City") and all other governmental bodies having jurisdiction over the Loan Property, including, without limitation, the Americans with Disabilities Act and those related to environmental protection. Borrower has commenced construction of the Improvements. Borrower agrees to carry on continuously, diligently and with reasonable dispatch the construction of the Improvements to full and final completion. 3. Purchase of Equipment. Borrower has provided Lender a preliminary list of the Equipment that it intends to purchase for use in its business from the Project, attached hereto as Exhibit A. Borrower will complete the purchase of the Equipment and, to the extent possible, take delivery of the same, within thirty (30) days after the disbursal of the Loan proceeds. If Borrower wishes to purchase other or different Equipment, Borrower shall provide Lender an updated Exhibit A for its review and approval, which approval will not be unreasonably withheld, so long as the replacement equipment is substantially similar to the replaced Equipment in function and value. Borrower will provide Lender a final list of Equipment purchased within forty-five (45) days after the disbursal of the Loan proceeds. 4. Title Insurance. Sherburne County Abstract and Title Company ("Title"), is designated as the title insurer with respect to this Agreement. Title will insure Lender against loss or damage on account of mechanic's liens upon or unmarketability of the title to the Loan Property, and will insure that the Mortgage constitutes a second position lien upon Borrower's interest in the Loan Property as contemplated by this Agreement, subject only to the contracts for deed set forth as Items 1 and 2 on Exhibit B to the Mortgage(the "Contracts for Deed"). Borrower agrees to promptly and fully observe and comply with the reasonable requirements of Title and Lender with respect to the title, the Mortgage, disbursements of funds and such other reasonable requirements as Title may make. As of the date of this Agreement, construction of the Improvements is not complete nor have all lien waivers been received. As such, Lender's title insurer may not be able to insure that Lender's Mortgage has the second priority position. Borrower covenants that: (i) it will pay all lienable amounts incurred in relation to the Improvements and the purchase of the Equipment promptly upon receipt of an invoice for the same; (ii) will provide lien waivers to Lender promptly upon receipt; and (iii) will