Common use of COST OVERRUNS AND SAVINGS; CHANGE ORDER RESERVE Clause in Contracts

COST OVERRUNS AND SAVINGS; CHANGE ORDER RESERVE. In the event that the costs to acquire and complete any Project in its entirety, including, without limitation, the furnishing thereof, exceed the amount of Loan proceeds available for the subject Project (including the applicable Owner's Contingency), then the subject Borrower shall with its own funds pay all costs and expenses which may be required to complete the subject Project as and when such costs and expenses become due and payable. In the event the costs to acquire and complete any Project are less than the amount of Loan proceeds allocated to the subject Project, then the unapplied portion of the Loan proceeds (including any unexpended portion of the applicable Owner's Contingency and amounts required to be refunded by Borrower under Section 6.1 for any overpayments of Loan proceeds made in the final advance for a Project) shall be retained by Atlantic as a reserve for Change Orders on other Projects which are made in accordance with the requirements of this Agreement (the "Change Order Reserve"). Provided no Default exists hereunder, the Change Order Reserve shall be disbursed by Atlantic to any Borrower from time to time to cover the costs of Change Orders to the extent any such Change Order results in Project costs exceeding the Project Budget, including the Owner's Contingency, for such Project (before such Borrower or Homestead, as guarantor under the Completion and Payment Guaranty, shall be required to cover such additional costs pursuant to the provisions of this Section 6.6 or the Completion and Payment Guaranty). Requests for disbursement of portions of the Change Order Reserve shall be made with Homestead's monthly requests for advance of Loan proceeds. Upon the occurrence of a Default hereunder, Atlantic shall have no obligation to advance any portion of the Change Order Reserve until such Default is cured. Upon the occurrence of an Event of Default, Atlantic may apply the Change Order Reserve against any of the obligations secured by the Security Documents as Atlantic sees fit or, at Atlantic's option, to the completion of any incomplete Improvements.

COST OVERRUNS AND SAVINGS; CHANGE ORDER RESERVE. In the event that the costs to acquire and complete any Project in its entirety, including, without limitation, the furnishing thereof, exceed the amount of Loan proceeds available for the subject Project (including the applicable Owner's Contingency), then the subject Borrower shall with its own funds pay all costs and expenses which may be required to complete the subject Project as and when such costs and expenses become due and payable. In the event the costs to acquire and complete any Project are less than the amount of Loan proceeds allocated to the subject Project, then the unapplied portion of the Loan proceeds (including any unexpended portion of the applicable Owner's Contingency and amounts required to be refunded by Borrower under Section 6.1 for any overpayments of Loan proceeds made in the final advance for a Project) shall be retained by Atlantic PTR as a reserve for Change Orders on other Projects which are made in accordance with the requirements of this Agreement (the "Change Order Reserve"). Provided no Default exists hereunder, the Change Order Reserve shall be disbursed by Atlantic PTR to any Borrower from time to time to cover the costs of Change Orders to the extent any such Change Order results in Project costs exceeding the Project Budget, including the Owner's Contingency, for such Project (before such Borrower or Homestead, as guarantor under the Completion and Payment Guaranty, shall be required to cover such additional costs pursuant to the provisions of this Section 6.6 or the Completion and Payment Guaranty). Requests for disbursement of portions of the Change Order Reserve shall be made with Homestead's monthly requests for advance of Loan proceeds. Upon the occurrence of a Default hereunder, Atlantic PTR shall have no obligation to advance any portion of the Change Order Reserve until such Default is cured. Upon the occurrence of an Event of Default, Atlantic PTR may apply the Change Order Reserve against any of the obligations secured by the Security Documents as Atlantic PTR sees fit or, at AtlanticPTR's option, to the completion of any incomplete Improvements.