Loan in Balance; the Borrower’s Sources.
(a) The Loan is “in balance” whenever the undisbursed funds available to the Borrower for the Project (taking into account, among other things, the timing of anticipated receipts and disbursements of funds) under the Loan, plus any sums on deposit in the Capital Contribution Account and other amounts to be deposited therein for budgeted items and to pay the Note, plus the undisbursed Taxable Tail Loan, to pay budgeted amounts, plus any sums on deposit in the Borrower’s Funds Account (as defined below), plus any undisbursed Loan funds in the Project Fund (with respect to budgeted construction items) and the Interest Account of the Bond Fund (with respect to budgeted interest) or otherwise made available to the Bondholder Representative in the form of a letter of credit, pledged bank account, or other form of cash collateral, approved by the Bondholder Representative in its sole and absolute discretion (“Cash Collateral”), are sufficient in the reasonable judgment of the Bondholder Representative to pay, through Substantial Completion of all of the Project and on a timely basis all of the following sums (“Total Project Expenses”):
(i) all costs of acquisition, equipment, ownership and maintenance of the Project and Facility and all costs and expenses of construction and equipment of the Facility in accordance with the Plans and Specifications and the Budget approved by the Bondholder Representative; (ii) all costs of leasing or renting of the apartment units in the Project; and
Loan in Balance; the Borrower’s Sources. (a) The Loan is “in balance” whenever the undisbursed funds available to the Borrower for the Project (taking into account, among other things, the timing of anticipated receipts and disbursements of funds) under the Taxable Tail Loan, plus the undisbursed portion of the Capital Contributions to pay budgeted costs (including amounts in the Capital Contribution Account), plus the undisbursed portion of the Subordinate Loans available to pay budgeted costs (including amounts on deposit for later disbursement), plus any sums on deposit in the Borrower’s Funds Account (as defined below), plus any undisbursed Loan funds in the Project Fund (with respect to budgeted construction items) and the Interest Account of the Bond Fund (with respect to budgeted interest) ,or otherwise made available to the Bondholder Representative in the form of a letter of credit, pledged bank account, or other form of cash collateral, approved by the Bondholder Representative in its sole and absolute discretion (“Cash Collateral”), are sufficient in the reasonable judgment of the Bondholder Representative to pay, through Substantial Completion of all of the Project and on a timely basis all of the following sums (“Total Project Expenses”):
(i) all costs of acquisition, equipment, ownership and maintenance of the Project and Facility and all costs and expenses of construction and equipment of the Facility in accordance with the Plans and Specifications and the Budget approved by the Bondholder Representative; (ii) all costs of leasing or renting of the apartment units in the Project; and (iii) all interest and all other sums and costs which may accrue or be payable under the Loan Documents prior to or in connection with the Conversion Date. Developer Fee shall not be deemed a Total Project Expense. The Capital Contribution Account, the Borrower’s Funds Account, Subordinate Loan proceeds, and any Cash Collateral, together with undisbursed Loan funds in the Project Fund (with respect to budgeted construction items) and the Interest Account of the Bond Fund (with respect to budgeted interest), are collectively referred to herein as “Borrower’s Sources.” Prior to and in connection with the occurrence of the Bond Closing, the Borrower shall (i) cause the Investor Member to deposit the first installment of the Capital Contribution, less any portion thereof used to pay Costs of Issuance through the escrow for the closing of the Loan or any reimbursements permitted under the Operating Agreemen...
