Common use of Financing Condition Clause in Contracts

Financing Condition. Prior to Tenant’s commencement of construction on the Premises, Tenant shall provide written evidence to Landlord, in form and substance reasonably acceptable to Landlord, that Tenant has obtained actual or committed funds (through actual contributions, pledges for contributions, debt financing or a combination thereof) equal to 100% of the Estimated Budget (as hereinafter defined) to complete construction of a museum building substantially in accordance with the Approved Plans, provided that committed funds may not constitute more than fifty percent (50%) of the Estimated Budget. For purposes of the foregoing, a “committed fund” shall mean a written pledge from a person or entity to contribute funds to Tenant over a period of not more than five (5) years for the purpose of funding the construction of the museum building. The “Estimated Budget” shall mean the total construction cost for the museum building as specified in the permit issued by The Town of Chapel Hill (or an affiliated governmental agency such as a planning board or building department) in connection with the Approved Plans or, in the event the permit does not specify such construction cost, the Estimated Budget shall be stipulated in writing by Tenant’s general contractor, which stipulation shall be binding on Landlord and Tenant.