DEVELOPMENT DEFICIT GUARANTY Clause Samples
A Development Deficit Guaranty is a contractual provision that requires a guarantor to cover any shortfall in funds needed to complete a development project. In practice, if the project's costs exceed the available financing or budget, the guarantor must provide the additional capital necessary to ensure completion. This clause is commonly used in real estate or construction financing to protect lenders and stakeholders from the risk of incomplete projects due to financial shortfalls, thereby ensuring the project's successful delivery.
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DEVELOPMENT DEFICIT GUARANTY. Feld hereby guarantees Feld sha▇▇ ▇dvance to or for th▇ ▇▇count of the Company amounts equal to all Development Deficits at such time as such Development Deficits occur ("Development Deficit Payments"). Feld shall make Development De▇▇▇▇t Payments required of him by the earlier of (A) the date required to avoid a default under Company obligations, including without limitation the Construction Loan, and (B) the date required to keep all sources of funding for the Project "in balance" as adequate sources of funds to timely cause Final Completion of the Project and satisfaction of other obligations of the Company. In any event, all Development Deficits shall be paid by Feld in full prior to the Final ▇▇▇sing Date. All Development Deficit Payments made to the Company shall be non-reimbursable payments, and Feld shall not be entitled to a▇▇ ▇epayment from the Company (unless advances of the Construction Loan are later available to reimburse Feld for the same), and the Cap▇▇▇▇ Account of Feld shall not be affected by a▇▇ ▇eficit Payments made by Feld. Without limiting the gene▇▇▇▇ty of the foregoing, Feld shall not be entitled to r▇▇▇▇urse himself for any Development Deficits. Notwithstanding anything to the contrary in this Agreement, the Members agree that, prior to Substantial Completion, all debt service expenses shall be paid only from the funds reserved for Budgeted Construction Loan Interest and from Development Deficit Payments, not from any other funds of the Company (including, without limitation, Net Operating Income); provided, however, that Net Operating Income shall be used to pay debt service expenses if so requested by the Construction Lender (such payments are herein referred to as "NOI Construction Loan Interest Payments"). If any such payments are requested by the Construction Lender, such payments will be included in the calculation of the Completion Fee to the extent any Budgeted Construction Loan Interest remains undisbursed. Without the prior written consent of WPHC, the funds reserved as Budgeted Construction Loan Interest will be used for the sole purpose of debt service expenses on the Construction Loan and for no other purpose (including, without limitation, the payment of Development Deficits). Any funds remaining after the payment of debt service on the Construction Loan will be treated as net Cash Flow.
DEVELOPMENT DEFICIT GUARANTY. Feld hereby guarantees Feld sha▇▇ ▇dvance to or for th▇ ▇▇count of the Company amounts equal to all Development Deficits at such time as such Development Deficits occur ("Development Deficit Payments"). Feld shall make Development Def▇▇▇▇ Payments required of him by the earlier of (A) the date required to avoid a default under Company obligations, including without limitation the Construction Loan, and (B) the date required to keep all sources of funding for the Project "in balance" as adequate sources of funds to timely cause Final Completion of the Project and satisfaction of other obligations of the Company. In any event, all Development Deficits shall be paid by Feld in full prior to the Fi▇▇▇ Closing Date. All Development Deficit Payments made to the Company shall be non-reimbursable payments, and Feld shall not be entitled to ▇▇▇ repayment from the Company (unless advances of the Construction Loan are later available to reimburse Feld for the same), and the Ca▇▇▇▇l Account of Feld shall not be affected by a▇▇ ▇eficit Payments made by Feld. Without limiting the ▇▇▇▇rality of the foregoing, Feld shall not be entitled to r▇▇▇▇urse himself for any Development Deficits.
DEVELOPMENT DEFICIT GUARANTY. ▇▇▇▇ hereby guarantees ▇▇▇▇ shall advance to or for the account of the Company amounts equal to all Development Deficits at such time as such Development Deficits occur ("Development Deficit Payments"). ▇▇▇▇ shall make Development Deficit Payments required of him by the earlier of (A) the date required to avoid a default under Company obligations, including without limitation the Construction Loan, and (B) the date required to keep all sources of funding for the Project "in balance" as adequate sources of funds to timely cause Final Completion of the Project and satisfaction of other obligations of the Company. In any event, all Development Deficits shall be paid by ▇▇▇▇ in full prior to the Final Closing Date. All Development Deficit Payments made to the Company shall be non- reimbursable payments, and ▇▇▇▇ shall not be entitled to any repayment from the Company (unless advances of the Construction Loan are later available to reimburse ▇▇▇▇ for the same), and the Capital Account of ▇▇▇▇ shall not be affected by any Deficit Payments made by ▇▇▇▇. Without limiting the generality of the foregoing, ▇▇▇▇ shall not be entitled to reimburse himself for any Development Deficits.