Common use of Contingency Reserve Clause in Contracts

Contingency Reserve. At the time of the first advance made pursuant to this Agreement, Lender shall establish an contingency reserve of $400,000 of the principal amount of the Loan, which amount is to be used exclusively for the payment of bona fide and required direct production costs which are in excess of the amount set forth in the applicable line item in the Approved Budget and which cannot be funded by a Budget underage ("Contingency Reserve").. The payment of any such costs shall be treated as advances and added to the outstanding principal balance owed by Borrower to Lender.

Contingency Reserve. At the time of the first advance made pursuant to this Agreement, Lender shall establish an contingency reserve of $400,000 440,000 of the principal amount of the Loan, which amount is to may be allocated and used exclusively for the payment of bona fide and required direct production costs which are in excess of the amount set forth in the applicable Budget line item in the Approved Budget and overage which cannot be funded by a Budget underage ("Contingency Reserve").. The payment of any such costs shall be treated as advances and added to the outstanding principal balance owed by Borrower Borrowers to Lender.