Sec. 05.06.02.10. Approval of Project, Loans, and Disbursement

A. Before closing of the bridge loan, the Fund shall review and give its written approval to the completed drawings and specifications for the project, and all loans relating to the project, whether junior or senior to the insured bridge loan.

B. The Fund shall review financial statements and resumes for the general partners, the general contractor, and the management agent for the project. The financial statements shall show adequate liquidity to complete the project for the general partners and a consistent or increasing net worth for the contractor. The general contractor and the management agent shall have successfully constructed or managed, respectively, at least one comparable project and the general contractor shall have a record of timely completion of projects.

C. The Fund shall approve the total budget for the project and each disbursement of the bridge loan.

D. After closing of the bridge loan, the Fund shall review and give its written approval to any changes to the plans and specifications, any modifications to the bridge loan documents or documents relating to any superior loans, any change orders, and all requisitions for disbursement of the bridge loan.