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Draws and disbursements will be managed by the approved lender. The lender is required to maintain a draw and disbursement ledger for any loan guarantee request. The
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borrower and lender will be jointly responsible for approving disbursements to the builder during the construction phase. Total disbursements should not exceed the value of the realized material cost and the percentage of work in place with the exception of an initial disbursement to commence construction. When funds are disbursed, the lender is warranting to Rural Development the work was done as specified. The lender will maintain documentation in their file evidencing the work was completed for the draw which was disbursed. At a minimum, documentation should include evidence of a third- party inspection, signed conditional lien waiver from the contractor/builder, and a title insurance endorsement for each draw. 12.24 CHANGE ORDERS