When the contractor requests final payment, a Final Contractor's Affidavit must be submitted to the lender. The Final Contractor's Affidavit lists all money due to potential lienors that have not been paid. The lender will typically require affidavits from each potential lienor assuring that they have been paid before releasing the final draw amount to the contractor.
The Arkansas Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a legal document that contractors or subcontractors in Arkansas used to request the release of final payment from a lender. This affidavit is essential for ensuring that all parties involved in a construction project are properly compensated. The affidavit acts as proof that the contractor has fulfilled all of their obligations and completed the necessary work according to the terms of the contract. By submitting this document, contractors can provide assurance to lenders that they are entitled to the remaining funds. Keywords: 1. Arkansas Contractor's Affidavit: This document is specific to contractors in Arkansas and is used as a formal request for final payment. 2. Lender: Refers to the financial institution or entity that has provided the funds for the construction project. 3. Release of Funds: The contractor requests the release of the remaining funds held by the lender upon completion of the project. 4. Final Payment: The amount outstanding and due to the contractor or subcontractor after completing all work on the construction project. 5. Construction Project: Refers to any building or infrastructure development which requires the services of a contractor. 6. Obligations: The responsibilities and tasks that the contractor has agreed to fulfill as per the terms of the construction contract. Types of Arkansas Contractor's Affidavit to Induce Lender to Release Funds — Final Payment: 1. General Contractor's Affidavit: This specific affidavit is used when the contractor directly contracts with the property owner or developer. 2. Subcontractor's Affidavit: In cases where a subcontractor is working under a general contractor, this affidavit is required to request the release of funds. 3. Multiple Contractor Affidavits: If there are multiple contractors involved in a project, each contractor may need to submit their own affidavit to induce the lender to release funds. In conclusion, the Arkansas Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a crucial document for contractors in Arkansas to request the release of remaining funds from a lender upon completion of a construction project. By providing a detailed description of the work completed, contractors can ensure that they receive their final payment in a timely manner.
