I need proper explanation

Banks often use the Apportion Method to authorize the borrower to pay a contractor for completion of specic segments of the house. For example, the bank approves a load for $1,000,000 to build a new house. However, the bank stipulates that the heating and air conditioning cannot be more than 10% and the air conditioning cost cannot be more than 5%. Therefore, the limit on the cost of the air conditioning system is $5,000. True/ False