Common use of Form of Funded Overrun Equity Commitment Clause in Contracts

Form of Funded Overrun Equity Commitment. (a) Each Equity Contributor shall secure its share of the Funded Overrun Equity Commitment by providing Funded Overrun Equity Commitment Balance Security in an amount not less than the amount of such Equity Contributor’s Individual Funded Overrun Equity Commitment Balance. With respect to any Funded Overrun Equity Commitment Balance Security provided by an Equity Contributor in the form of Cash Collateral, (i) such Cash Collateral shall be deposited into a separate Funded Overrun Equity Account established by the Collateral Agent, and (ii) such Equity Contributor shall enter into such agreements and instruments as are necessary to create and perfect a first-priority security interest under applicable law in such Cash Collateral, and shall provide customary legal opinions with respect to such creation and perfection. (b) Each Equity Contributor’s share of the Funded Overrun Equity Balance Security may, in accordance with the following two paragraphs, be established over time as such Equity Contributor contributes its Funded Overrun Equity Percentage of Funded Overrun Equity Balance Security, provided, however, that such establishment of each Equity Contributor’s share of the Funded Overrun Equity Balance Security shall be made in accordance with Sections 2.2.3(c) and (d) below. (c) Each month the Loan Servicer shall cause the Lender’s Engineer to calculate and provide to the Loan Servicer in the Lender’s Engineer Construction Progress Report the amount of Owner’s Contingency that has not been allocated to, or used to fund, identified Project Costs and remains available for the allocation to, and payment of, future Project Costs, the amount of any Funded Overrun Equity Contributions previously made in accordance with this Section 2.2.3 that have not been allocated to, or used to fund, Project Costs and remain available for the allocation to, and payment of, future Project Costs and the amount of the Funded Overrun Equity Commitment Balance Security (“Available Owner’s Contingency”), together with a calculation in reasonable detail of the basis for such calculation. The Loan Servicer shall review and approve such calculation of Available Owner’s Contingency and provide a copy thereof to the Borrower and each Equity Contributor. (d) If at any time the amount of Available Owner’s Contingency has been reduced to less than 2.00% of Base Project Costs, then not later than 10 days after receipt of such notice (the “Overrun Equity Contribution Date”), the Equity Contributors shall increase the Funded Overrun Equity Commitment Balance Security in an aggregate amount equal to the lesser of (i) the amount required to increase the Available Owner’s Contingency to 3.00% of Base Project Costs and (ii) the then-remaining Funded Overrun Equity Balance. (e) If at any time an Equity Contributor breaches Section 2.2.3, such Equity Contributor shall cure such deficiency within 10 days after written demand from the Collateral Agent or the Loan Servicer. (f) If at any time the amount of an Equity Contributor’s Funded Overrun Equity Commitment Balance Security is greater than the amount of such Equity Contributor’s Individual Funded Overrun Equity Commitment Balance, such Equity Contributor’s Funded Overrun Equity Commitment Balance Security may be accordingly reduced by written notice to the Loan Servicer and the Collateral Agent.