If the proceeds of the mortgage to be insured will not be fully disbursed at closing, the following requirements must be complied with:

1. Pending disbursement of the full proceeds of the loan secured by the mortgage insured, this policy insures only to the extent of the amount actually disbursed, but increases as each disbursement is made in good faith for the payment of construction costs, up to the face amount of the policy. At the time of each disbursement of the proceeds of the loan, the title examination must be continued down to such time for possible liens, including Notices of Unpaid Balance and Construction Lien Claims, and other matters, intervening between the date hereof and the date of such disbursement.

2. Notices of Unpaid Balance and Construction Lien Claims must be discharged or released of record, or subordinated to the lien of the mortgage insured prior to each advance of the loan proceeds.

PDCX14 NJ STGC
Loan Policy - Construction - New Jersey
I. Pending disbursement of the full proceeds of the loan secured by the mortgage insured, this policy insures only to the extent of the amount actually disbursed, but increases as each disbursement is made in good faith for the payment of construction costs, up to the face amount of the policy. At the time of each disbursement of the proceeds of the loan, the title examination must be continued down to such time for possible liens, including Notices of Unpaid Balance and Construction Lien Claims, and other matters, intervening between the date hereof and the date of such disbursement.
II. Notices of Unpaid Balance and Construction Lien Claims must be discharged or released of record, or subordinated to the lien of the mortgage insured prior to each advance of the loan proceeds.

Comment: This pending disbursement clause requires underwriter approval. This clause is authorized for use solely in New Jersey.