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HomeMy WebLinkAbout1686 • ~ action. All moneys expended by Mortgagee in connection therewith (including. but not limited to, legal expenses, including reasonable attorneys' fees and disbursements), together with interest thereon at the Overdue Interest Rate - from the date of each such expenditure, shall be paid by Developer to Mortgagee forthwith upon demand by Mortgagee, and shall be secured by the Mortgage, and Mortgagee shall have, in addition to any other right or remedy of Mortgagee, the same rights and remedies in the event of nonpayment of any such sums by Developer as in the case of an Event of Default hereunder. (c) Subrogation. Mortgagors and Developer agree that if Mortgagee shall make any payment or perform any act in accordance with Section 4.05, Mortgagee shall be subrogated to all rights, liens and privileges which before such payment or the performance of such act were vested in any Construction Lender. 4.06. Trust Funds. Developer agrees that all monies advanced to it by any Construction Lender shall be deemed trust funds which shall be disbursed by Developer solely in payment of costs and expenses incurred by De- - veloper for labor or materials used, or services rendered in connection with the Project, the payment of taxes, insurance or carrying charges, including interest on any Construction Mortgage the Mortgage and the Subordinate Mortgages, the payment of architectural and engineering fees incurred in connection with the Project, the payment of title insurance premiums for Mortgagee title insurance on any Construction Mortgage, legal fees incurred in connection with the Froject, the cost of any. bonds relating to the Project or to reimburse Developer for any such costs and ~ expenses theretofore paid by it. Developer shall upon ~ request submit copies- to Mortgagee of any documents re- quested by any Construction Lender in connection with an advance. 4.07. No Duties Imposed on Mortgagee. liort- gagors and Developer agree that Mortgagee sha 1 have no duty to supervise or inspect any construction upon the Premises or to monitor the application or use by Developer of any moneys advanced to it by any Construction Lender. ARTICLE V CONSTRUCTION~O$LIGATIONS; SUBORDINATIONS AND RELEASES 5.01. Development Obligations. (a) Developer agrees to plat the Premises into the individual parcels of land identified as Phases I through V, inclusive, and the Recreational Complex and the Utility Area on the Preliminary -Site Plans, to construct the Residential Phases of the Project on a phase by phase basis and prior to the convey- ance of any residential unit, to cause to be formed a condominium for each such-Residential Phase. Mortgagee hereby consents to a platting of the Premises as shown on ~ the Preliminary Site Plans and agrees to execute any docu- ments reasonably requested by Developer to evidence such i -16- 800 P1tGE168~?