§514A-67  Financing construction. 
Should the apartments be conveyed or leased prior to the completion of
construction of the building or buildings for the purpose of financing such
construction, all moneys from the sale of such apartments, including any payments
made on loan commitments from lending institutions, shall be deposited by the
developer in a trust fund with a bank, savings and loan association, or trust
company authorized to do business in the State under an escrow arrangement. 
Disbursements from such fund may be made, from time to time, to pay for
construction costs of the building or buildings in proportion to the valuation
of the work completed by the contractor as certified by a registered architect
or professional engineer, and for architectural, engineering, finance, and
legal fees and for other incidental expenses of the condominium project as
approved by the mortgagee.  The balance of the moneys remaining in the trust
fund shall be disbursed only upon completion of the building or buildings, free
and clear of all mechanic's and materialman's liens.  The real estate
commission may impose other restrictions relative to the retention and
disbursement of the trust fund. [L 1977, c 98, pt of §2]



 



Law Journals and Reviews



 



  Protecting the Deposit of the "Consumer" Who
Purchases a New Condominium Apartment.  8 HBJ 103.



 



Case Notes



 



  Rights of purchasers and subsequent mortgagee.  50 H. 540,
445 P.2d 109.