Common use of Funding Conditions Clause in Contracts

Funding Conditions. (1) Before the Recipient enters into a Contribution Agreement with a Proponent for an approved New Facilities Project, the Recipient shall: (a) ensure that the Proponent has disclosed all of its creditors, debt and the proposed construction, acquisition, rehabilitation and/or conversion costs in full; and (b) confirm to the Province the source and availability of adequate ongoing funding for any acquisition of property or Development Activities for the New Facilities Project and the support services that will be made available to the public through the Project once complete. (2) The Recipient shall ensure that the Contribution Agreement with each Proponent requires the Proponent to comply with the requirements of the Program, and, if the New Facilities Project involves Development Activities, includes obligations to: (a) complete the construction of the approved Project within construction budgets and financing approved by the Recipient and required timelines; (b) ensure that until construction of the approved Project is complete (i) all claims for lien registered against the Project(s) are promptly vacated, (ii) the Proponent does not incur any additional construction financing, capital or operating debt related to the Project without the Recipient’s consent (iii) the Project(s) are not encumbered by any registered encumbrances other than Permitted Encumbrances, (iv) the Proponent remains in good standing under the Permitted Encumbrances and (v) any work orders issued against the Project(s) by any governmental entity, agency or official are addressed to the satisfaction of the Recipient; (c) obtain all the insurance a reasonably prudent person carrying out the Project would obtain, including at least $2,000,000 in commercial general liability insurance, and all other the insurance required by Schedule “A” to this Agreement read as if it applied to the Proponent, and including: (i) Builder’s Risk Insurance (property insurance) for the full replacement value of the completed construction projects, including a negotiated sub-limit for earthquake and flood. The policy must include the following: 1. replacement cost value; 2. stated amount of co-insurance; 3. waiver of subrogation; and 4. loss payable in favour of the Recipient and the Indemnified Parties.

Funding Conditions. (1) Before the Recipient enters into a Contribution Agreement with a Proponent for an approved New Facilities Project, the Recipient shall: (a) ensure that the Proponent has disclosed all of its creditors, debt and the proposed construction, acquisition, rehabilitation and/or conversion costs in full; and (b) confirm to the Province the source and availability of adequate ongoing funding for any acquisition of property or Development Activities for the New Facilities Project and the support services that will be made available to the public through the Project once complete. (2) The Recipient shall ensure that the Contribution Agreement with each Proponent requires the Proponent to comply with the requirements of the ProgramCapital Component, and, if the New Facilities Project involves Development Activities, includes obligations to: (a) complete the construction of the approved Project within construction budgets and financing approved by the Recipient and required timelines; (b) ensure that until construction of the approved Project is complete (i) all claims for lien registered against the Project(s) are promptly vacated, (ii) the Proponent does not incur any additional construction financing, capital or operating debt related to the Project without the Recipient’s consent (iii) the Project(s) are not encumbered by any registered encumbrances other than Permitted Encumbrances, (iv) the Proponent remains in good standing under the Permitted Encumbrances and (v) any work orders issued against the Project(s) by any governmental entity, agency or official are addressed to the satisfaction of the Recipient; (c) obtain all the insurance a reasonably prudent person carrying out the Project would obtain, including at least $2,000,000 in commercial general liability insurance, and all other the insurance required by Schedule “A” to this Agreement the main body of the TPA read as if it applied to the Proponent and/or the Proponent’s Project, and including: (i) Builder’s Risk Insurance (property insurance) for the full replacement value of the completed construction projects, including a negotiated sub-sub- limit for earthquake and flood. The policy must include the following: 1. replacement cost value; 2. stated amount of co-insurance; 3. waiver of subrogation; and 4. loss payable in favour of the Recipient and the Indemnified Parties. (ii) Boiler and Machinery Insurance (including pressure objects, machinery objects and service supply objects) on a comprehensive basis. The policy must include the following: 1. repair and/or replacement value; 2. stated amount co-insurance; 3. waiver of subrogation; and 4. loss payable in favour of the Recipient and the Indemnified Parties.