Common use of Expenditure of Proceeds for the Project Clause in Contracts

Expenditure of Proceeds for the Project. The acquisition of the Project will commence promptly following the Closing Date, and the Lessee has incurred, or will incur, within six (6) months after the Closing Date, a substantial binding commitment to expend at least five percent (5%) of the Net Sales Proceeds (defined in Treas. Reg. § 1.148-1(b) as Sales Proceeds less an amount that is the lesser of five percent (5%) of the Sales Proceeds or $100,000) on the Project. The Lessee will expend at least eighty-five percent (85%) of the Net Sales Proceeds by the third annual anniversary date of the Closing Date. The acquisition of the Project will proceed with due diligence to completion and the Proceeds will be spent on the Project with due diligence no later than such anniversary date.

Expenditure of Proceeds for the Project. The acquisition of the Project will commence promptly following the Closing Date, and the Lessee Participant has incurred, or will incur, within six (6) months after the Closing Date, a substantial binding commitment to expend at least five percent (5%) of the Net Sales Proceeds (defined in Treas. Reg. § 1.148-1(b) as Sales Proceeds less an amount that is the lesser amounts deposited in a Reasonably Required Reserve or Replacement Fund and as part of five percent (5%) of the Sales Proceeds or $100,000a Minor Portion) on the Project. The Lessee Participant will expend at least eighty-five percent (85%) of the Net Sales Proceeds by the third annual anniversary date within three years of the Closing Date. The acquisition of the Project will proceed with due diligence to completion and the Proceeds will be spent on the Project with due diligence no later than such anniversary datethree years after the Closing Date.