Common use of Financing of Allocated Capital Costs by a Participating Contractor Clause in Contracts

Financing of Allocated Capital Costs by a Participating Contractor. (A) The District may elect to pay a portion or all of the capital costs of the enlargement construction allocated to the District by furnishing funds to the State in advance of the State incurring the capital costs, provided that the total remaining costs to be financed by the State shall not be less than $50 million. The District may elect in writing to use this option by June 15 of each year as to any portion of an East Branch Enlargement Facility not yet funded by the State. If the District does not elect this option by June 15 of a given year, it may, with the consent of the State elect the option at a later time in that year. (B) For any year in which the District elects this option, the State shall, on or before July 1 furnish the District with a written statement of estimated amounts of funds needed by the State in the succeeding year and of the calendar dates by which the State will need the funds. During each succeeding year the State shall, on the first of each month, notify the District of funds needed within the succeeding month. The District shall pay to the State the requested funds within fifteen calendar days of receipt of notification. The District may elect to advance funds to the State on an accelerated schedule acceptable to the State. Unless otherwise agreed to by the District and the State, interest earned on any funds advanced pursuant to this paragraph shall be credited to reduce payments due from the District under this contract. To the extent practicable, interest earned shall be at the Surplus Money Investment Fund rate. The District may terminate its use of this option for a given year with the agreement of the State. If the District elects this option, subparagraphs (d)(5) and (d)(6) of this article shall not apply to any portion of capital costs to be paid pursuant to the option. (C) If the District does not elect to pay all of the capital costs of the enlargement allocated to the District by furnishing funds to the State in advance, the State, after consultation with the District, shall prepare a plan for the State’s financing of the East Branch Enlargement and shall give the District an opportunity to comment on the plan. The plan shall include but not be limited to the size of any revenue bond issuances and the form of necessary resolutions, articles and covenants.

Financing of Allocated Capital Costs by a Participating Contractor. (A) The District Agency may elect to pay a portion or all of the capital costs of the enlargement construction allocated to the District Agency by furnishing funds to the State in advance of the State incurring the capital costs, provided that the total remaining costs to be financed by the State shall not be less than $50 million. The District Agency may elect in writing to use this option by June 15 of each year as to any portion of an East Branch Enlargement Facility not yet funded by the State. If the District Agency does not elect this option by June 15 of a given year, it may, with the consent of the State elect the option at a later time in that year. (B) For any year in which the District Agency elects this option, the State shall, on or before July 1 furnish the District Agency with a written statement of estimated amounts of funds needed by the State in the succeeding year and of the calendar dates by which the State will need the funds. During each succeeding year the State shall, on the first of each month, notify the District Agency of funds needed within the succeeding month. The District Agency shall pay to the State the requested funds within fifteen calendar days of receipt of notification. The District Agency may elect to advance funds to the State on an accelerated schedule acceptable to the State. Unless otherwise agreed to by the District Agency and the State, interest earned on any funds advanced pursuant to this paragraph shall be credited to reduce payments due from the District Agency under this contract. To the extent practicable, interest earned shall be at the Surplus Money Investment Fund rate. The District Agency may terminate its use of this option for a given year with the agreement of the State. If the District Agency elects this option, subparagraphs (d)(5) and (d)(6) of this article shall not apply to any portion of capital costs to be paid pursuant to the option. (C) If the District Agency does not elect to pay all of the capital costs of the enlargement allocated to the District Agency by furnishing funds to the State in advance, the State, after consultation with the DistrictAgency, shall prepare a plan for the State’s financing of the East Branch Enlargement and shall give the District Agency an opportunity to comment on the plan. The plan shall include but not be limited to the size of any revenue bond issuances and the form of necessary resolutions, articles and covenants.