Common use of Adjustments Due to Supplemental Financing Costs Clause in Contracts

Adjustments Due to Supplemental Financing Costs. (1) If a contractor, with approval of the State, advances funds to the State to assist the State in financing construction of project facilities (except advances for delivery structures, measuring devices and excess capacity and also excepting advances made under Article 47(m) of this contract), such advance shall be amortized by means of annual credits to the contractor having made such advance of funds to the State, with such credits being equal to the actual bond service obligations payable by such contractor by reason of such advance or, if no bonded debt was incurred, then such credits shall be sufficient to cover the repayment of principal and interest costs which would have resulted if the contractor had sold bonds for the purpose of funding the advance as determined by the State. (2) If, after May 1, 1969, any source of funds other than those provided by the Bond Act is employed to finance construction of specific project facilities, any additional costs incurred because of such financing will not be charged to the contractors, except for adjustments to the “project interest rate”.

Adjustments Due to Supplemental Financing Costs. ‌ (1) If a contractor, with approval of the State, advances funds to the State to assist the State in financing construction of project facilities (except advances for delivery structures, measuring devices and excess capacity and also excepting advances made under Article 47(m) of this contract), such advance shall be amortized by means of annual credits to the contractor having made such advance of funds to the State, with such credits being equal to the actual bond service obligations payable by such contractor by reason of such advance or, if no bonded debt was incurred, then such credits shall be sufficient to cover the repayment of principal and interest costs which would have resulted if the contractor had sold bonds for the purpose of funding the advance as determined by the State. (2) If, after May 1, 1969, any source of funds other than those provided by the Bond Act is employed to finance construction of specific project facilities, any additional costs incurred because of such financing will not be charged to the contractors, except for adjustments to the “project interest rate”.