414.11

Commencement of Repair/Restoration Work

Before the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. disburses any funds to the BorrowerBorrowerPerson who is the obligor per the Note. for repair or restoration work the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • have any applicable executed Amendment to Multifamily Loan and Security Agreement (Restoration Reserve) (Form 6615) or Insurance Loss Proceeds Collateral Agreement (Form 6639);
  • have on deposit in a Custodial AccountCustodial AccountAccounts established by the Servicer for depositing P&I payments, T&I funds, Collateral Agreement deposits, and other similar funds. all insurance loss proceeds and, unless waived as provided above, sufficient BorrowerBorrowerPerson who is the obligor per the Note. funds to cover the estimated cost to complete the repair and restoration work;
  • except in the case of minor casualties, have copies of all applicable building permits and other permits/authorizations required to carry out the repair and restoration work;
  • except in the case of minor casualties, review (or have a qualified professional review) and approve any plans and specifications relating to the repair and restoration work;
  • obtain from the BorrowerBorrowerPerson who is the obligor per the Note. the identities of each principal contractor, architect, and engineer who will be involved in the repair and restoration work, and be satisfied with their qualifications (including assurance each is appropriately licensed and bonded); and
  • obtain evidence of builder’s risk insurance, if required, in accordance with Part II, Chapter 5: Property and Liability Insurance, Section 501.02E: Builder’s Risk Insurance.

Any emergency work required to protect the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). or correct a condition threatening the health or safety of the tenants must be undertaken immediately by the BorrowerBorrowerPerson who is the obligor per the Note. , even if the forgoing requirements have not been complied with.