CONSTRUCTION Fix N' Flip in California 

5. Conditions to Disbursement.  Lender’s obligation to disburse the Holdback Amount is conditioned upon each of the following being satisfied or waived:

(a) Borrower has not breached any covenants or representations and warranties under this Agreement.

(b) Borrower is not in default under the Note, the deed of trust securing the Note or any other documents relating to the Loan (collectively, the “Loan Documents”).

(c) Borrower has provided evidence that the property taxes on the security property  are all paid up to date.

(d) All sums due to contractors, subcontractors, employees, and material suppliers for work performed and materials supplied to date have been paid; such contractor, subcontractors, and material suppliers have not asserted any claims for payment, and no mechanics or materialmen's liens have been recorded on the Property.

(e) Borrower has sufficient funds to complete the improvements as required hereunder. 

(f) Borrower is the record owner of the Property on the date of disbursement. 

(g) Borrower has not filed any bankruptcy petition.

(h) The work stated in Section 4 has been performed and the materials purchased with funds disbursed to Borrower have been incorporated into the Property. 

(i) Borrower has provided to Lender all information reasonably requested by Lender in connection with the progress of the construction including but not limited to copies of bills and invoices for materials and

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services consumed, or to be consumed in the construction, evidence that workers and service providers have been paid, contract documents, receipts for expenditures, and budget documents for the Property. 

Should any of the covenants and conditions of Borrower contained in this Agreement not be satisfied, Lender reserves the right in its sole discretion to halt release of all or any portion of the Holdback Amount. 

6. Representations and Warranties.  Upon request for and disbursement of any portion of the Holdback Amount, Borrower will be deemed to have represented and warranted to Lender that Borrower has not breached any covenant contained in this Agreement or in any of the other Loan Documents, and that all of the conditions precedent set forth in Section 5 above have been fully satisfied. 

7. Recipient of Disbursements. Lender shall disburse portions of the Holdback Amount to Borrower, provided that Borrower is the owner of record of the Property. Lender may, at its option disburse, and Borrower hereby authorizes Lender to disburse, portions of the Holdback Amount directly to any contractor or subcontractor employed by Borrower for the improvements, or jointly to Borrower and the contractor or subcontractor who performed the work. Borrower hereby releases Lender and Broker from any liability regarding the disbursement of the Holdback Amount or any portion thereof to any third party or the application of the Holdback Amount by such third party. 

8. Deficiencies and Overages in Holdback Amount. If the Holdback Amount is insufficient for payment of all costs of construction, then Borrower shall be solely responsible for payment of any deficiencies. Any portion of the Holdback Amount remaining after the completion of all construction, remodeling and repair to the Property shall be applied to the principal balance of the Note or retained for future interest payment at the sole discretion of the Lender.  More

 Commercial Fix and Flip Loans

All cash