Alabama Construction Loan Agreement
Set out the terms of a construction loan with this downloadable template for a building project in Alabama.
- The maximum of any allowable advance will be the total of (i) the soft costs (development, planning, etc.) as set out in the budget, plus (ii) the lesser of the hard costs (materials and labor) of the completed construction or the scheduled value of each completed item.
- The retainage will be advanced only after substantial completion, issuance of a certificate of occupancy, and delivery to the lender of a survey of the project.
- Advances will be made for each item on the cost budget only up to the amount budgeted for such item.
- The lender is entitled to hold back an amount sufficient to pay all costs relating to the loan and the project.
- The file includes a Draw Request form to be tendered by the borrower to the lender before each advance of loan proceeds.
- This is a downloadable and customizable legal form which can be easily tailored to fit your unique needs.
- Intended for use only in the State of Alabama.
Last Updated: 18-June-2021