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Development Funding Agreement
"I need a Development Funding Agreement for a NZD 25 million mixed-use development project in Auckland, with staged drawdowns aligned to construction milestones and completion targeted for March 2025, including specific provisions for retail pre-sales requirements."
1. Parties: Identifies and defines all parties to the agreement, including the funder, developer, and any guarantors
2. Background: Sets out the context of the agreement, including the project overview and parties' intentions
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles
4. Funding Commitment: Details the total funding amount, funding tranches, and conditions for drawdown
5. Conditions Precedent: Specifies conditions that must be satisfied before funding becomes available
6. Drawdown Mechanics: Outlines the process and requirements for accessing the funding
7. Project Milestones: Defines key development milestones and their relationship to funding releases
8. Developer Obligations: Sets out the developer's commitments, responsibilities, and ongoing obligations
9. Representations and Warranties: Contains standard and specific warranties from all parties
10. Security Arrangements: Details the security package and ranking of securities
11. Reporting Requirements: Specifies ongoing reporting obligations and information requirements
12. Events of Default: Lists circumstances constituting default and corresponding remedies
13. Termination: Outlines termination rights and consequences
14. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law
1. Cost Overrun Provisions: Required when the developer needs to address potential cost overruns and funding solutions
2. Pre-sales Requirements: Necessary when funding is conditional on achieving specific pre-sales targets
3. Interest and Fees: Required when the funding arrangement includes interest payments or specific fee structures
4. Guarantees: Needed when personal or corporate guarantees are part of the security package
5. Environmental Obligations: Required for projects with significant environmental considerations or requirements
6. Joint Venture Provisions: Necessary when the development involves joint venture arrangements
7. Property Management: Required when the agreement includes ongoing property management obligations
8. Development Management: Needed when specific development management arrangements are required
9. Insurance Requirements: Detailed insurance provisions beyond standard requirements
10. Dispute Resolution: Specific dispute resolution procedures beyond standard provisions
1. Project Details: Detailed description of the development project, including plans and specifications
2. Development Program: Detailed timeline of development activities and milestones
3. Budget and Costings: Detailed project budget, including cost breakdowns and contingencies
4. Drawdown Schedule: Detailed schedule of funding tranches and associated conditions
5. Form of Drawdown Notice: Template for drawdown requests and supporting documentation
6. Security Documents: Forms of security documents and priority arrangements
7. Reporting Templates: Standard templates for required project reports
8. Property Details: Legal description and details of the development property
9. Required Insurances: Detailed schedule of required insurance coverage
10. Key Personnel: Details of key project personnel and their responsibilities
Authors
Real Estate Development
Commercial Property
Residential Property
Construction
Banking and Finance
Infrastructure Development
Mixed-use Development
Urban Regeneration
Industrial Development
Retirement Village Development
Legal
Finance
Development
Project Management
Risk and Compliance
Treasury
Property
Commercial
Construction
Investment
Chief Financial Officer
Development Director
Project Manager
Legal Counsel
Finance Manager
Property Developer
Construction Manager
Risk Manager
Investment Manager
Development Manager
Commercial Director
Funding Manager
Treasury Manager
Property Manager
Compliance Officer
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