Common use of Obligation to Complete Construction and to Pay Development Costs Clause in Contracts

Obligation to Complete Construction and to Pay Development Costs. The Developer shall complete the construction of the Apartment Complex or cause the same to be completed in a good and workmanlike manner, free and clear of all mechanics', materialmen's or similar liens, and shall equip the Apartment Complex or cause the same to be equipped with all necessary and appropriate fixtures, equipment and articles of personal property including refrigerators and ranges, all in accordance with the drawings and specifications forming a part of the construction contract. The Developer shall be obligated to pay any costs or expenses, incurred by the Partnership to fund any Apartment Complex construction, development or other costs and expenses in excess of (i) the funds available to the Partnership for the payment thereof through the later to occur Completion Date/Permanent Mortgage Commencement or the date of the admission of an investment limited partner to the Partnership and (ii) the proceeds of such investment limited partner's capital contribution to the Partnership (together, the Designated Proceeds). Any funds provided by the Developer pursuant to this Section 3 shall not be reimbursed by the Partnership, nor create any liability on behalf of the Partnership to the Developer, except that the Developer may be reimbursed for such items from Designated Proceeds. No such advance of funds by the Developer shall change the interest of any partner or be credited to any partner's capital account or capital contribution for any purpose. Excess development costs shall be borne solely by the Developer in its capacity as the developer of the Apartment Complex.

Obligation to Complete Construction and to Pay Development Costs. The Developer shall complete the construction of the Apartment Complex or cause the same to be completed in a good and workmanlike manner, free and clear of all mechanics', materialmen's materialmens or similar liens, and shall equip the Apartment Complex or cause the same to be equipped with all necessary and appropriate fixtures, equipment and articles of personal property including refrigerators and ranges, all in accordance with the drawings and specifications forming a part of the construction contract. The Developer shall be obligated to pay any costs or expenses, incurred by the Partnership to fund any Apartment Complex construction, development or other costs and expenses in excess of (i) the funds available to the Partnership for the payment thereof through the later to occur Completion Date/Permanent Mortgage Commencement or the date of the admission of an investment limited partner to the Partnership and (ii) the proceeds of such investment limited partner's partners capital contribution to the Partnership (together, the Designated Proceeds). Any funds provided by the Developer pursuant to this Section 3 shall not be reimbursed by the Partnership, nor create any liability on behalf of the Partnership to the Developer, except that the Developer may be reimbursed for such items from Designated Proceeds. No such advance of funds by the Developer shall change the interest of any partner or be credited to any partner's partners capital account or capital contribution for any purpose. Excess development costs shall be borne solely by the Developer in its capacity as the developer of the Apartment Complex.