For each cost, identify eligibility, prior reimbursements and other funding before calculating the remaining request. A positive eligible amount still requires the actual release conditions and available reserve cash.
A release request should establish the cost, the amount eligible under the agreement and what has already been funded. Keep the account balance and the release conditions alongside that calculation. An approved budget does not by itself establish that a particular invoice is ready for reimbursement.
A historical SEC-filed agreement illustrates certifications and controls against duplicate disbursement in section 6.5.2. Its negotiated deadlines, amounts and conditions do not govern the reader’s loan. The template below uses its own hypothetical figures and requires the actual agreement to be checked.
Identify the correct reserve
Different accounts may fund different categories and have different approval rights. Record the account, permitted use, current balance and any restrictions. A tax reserve cannot be assumed available for roof work merely because both belong to the same borrower.
Identify whether the request reimburses the borrower or pays a vendor directly. Trace the original payer and any prior reimbursement. A paid invoice and an unpaid invoice may require different supporting evidence under the actual arrangement.
Blank release schedule
cost_id,invoice_total_usd,eligible_cost_usd,prior_reimbursed_usd,other_funding_usd,remaining_request_usd,evidence_ref,release_condition_status
COST001,,,,,,,unverifiedField instructions
| Field | Record | Avoid |
|---|---|---|
| invoice_total_usd | Full invoice amount with supporting detail | Assuming the entire invoice is eligible |
| eligible_cost_usd | Supported amount under the stated reserve scope | Including excluded work without explanation |
| prior_reimbursed_usd | All prior recoveries for the same eligible cost | Looking only at the immediately preceding request |
| other_funding_usd | Relevant insurance or other offsets under the model | Double recovery or unsupported netting |
| evidence_ref | Invoice, payment, work and prior-request records | A receipt without identifying the completed scope |
| release_condition_status | Actual remaining conditions | Labeling a submitted inspection accepted |
Completed hypothetical request
cost_id,invoice_total_usd,eligible_cost_usd,prior_reimbursed_usd,other_funding_usd,remaining_request_usd,evidence_ref,release_condition_status
COST001,80000,60000,25000,15000,20000,INV-1;PAY-1;PRIOR-REQ-2;INSURANCE-1,Inspection pending
COST002,40000,40000,20000,0,20000,INV-2;PAY-2;PRIOR-REQ-3,Completion evidence submitted; acceptance pendingCOST001 has an $80,000 invoice, but only $60,000 is assumed eligible. Prior reserve reimbursement is $25,000 and $15,000 of other funding is assumed to offset the same eligible cost. The remaining request is $20,000.
COST002 has $40,000 eligible cost and $20,000 prior reimbursement, also leaving $20,000. Total arithmetic requests are $40,000. If the relevant reserve holds only $35,000, the requests exceed its cash by $5,000 even before any remaining conditions are considered.
That difference may require a revised request, another supported source or a different timing plan. It is not solved by changing the invoice or excluding the prior reimbursement. The example’s insurance treatment is an assumption to verify, not a universal rule about proceeds.
Check the full request history
Use stable cost identifiers across draws and releases. A vendor invoice renamed in a later package is still the same cost. Reconcile the request history to account statements and actual payments, including partial approvals and rejected items.
If the remaining amount becomes negative, investigate whether prior funding exceeded the eligible base or the classification changed. Preserve the negative control result and the corrective action rather than forcing the request to zero silently.
Plan for the cash interval
If the borrower pays before reimbursement, model the interval between payment and actual release. An expected reimbursement is not cash already available to pay the next contractor. Confirm timing, submission frequency and review requirements from the transaction’s own documents and servicing process.
Keep the final approval, disbursement date and account balance with the request. Update prior-reimbursed amounts after funds move. The complete package should let another reviewer trace the cost from invoice to payment to release without counting it twice.
Sources and evidence
- SEC exhibit — Block 40 Property loan agreementSection 6.5.2: Release of Capital Expenditure Funds · Checked 2026-10-21 · Agreement dated June 1, 2022; historical negotiated example only. Its terms do not govern the reader’s loan.
Source dates and applicability matter. Report an error or a changed source.