Common use of Operating Deficits Guaranty Clause in Contracts

Operating Deficits Guaranty. Each Guarantor hereby covenants and agrees solidarily to advance, on the terms set forth below, the funds required to fund any and all Operating Deficits incurred by the Borrower during the Operating Deficit Guaranty Period, within 120 days following the end of each fiscal year during the Operating Deficit Guaranty Period. If the Borrower anticipates the need to request any Guarantor to make a payment under this Guaranty to fund an Operating Deficit, the Borrower will promptly notify the Guarantors, in writing, with a copy to the LHC of the amount of such Operating Deficit (with sufficient supporting documentation to evidence the need to make a payment under this Guaranty). Prior to expiration of the 120-day period, the Guarantors shall promptly provide the Borrower with funds sufficient to pay the amount of such Operating Deficit and promptly upon receipt of such funds, the Borrower shall pay the Operating Expenses causing such Operating Deficit. Notwithstanding the foregoing, the LHC may submit a request directly to the Guarantors (with a copy of such request to Borrower), on behalf of the Borrower, to make a payment under this Guaranty upon making a determination of the existence of an Operating Deficit. It is the intention of the parties that in the event that Surplus Cash is negative at the end of any project fiscal year, Guarantors shall fund at least the amount of such Surplus Cash deficit pursuant to the terms of this Guaranty.

Operating Deficits Guaranty. Each Guarantor hereby covenants and agrees solidarily to advance, on the terms set forth below, the funds required to fund any and all Operating Deficits incurred by the Borrower during the Operating Deficit Guaranty Period, within 120 days following the end of each fiscal year during the Operating Deficit Guaranty PeriodTerm. If the Borrower anticipates the need to request any Guarantor to make a payment under this Guaranty to fund an Operating Deficit, the Borrower will promptly notify the Guarantors, in writing, with a copy to the LHC OCD of the amount of such Operating Deficit (with sufficient supporting documentation to evidence the need to make a payment under this Guaranty). Prior to expiration of the 120-day period, the Guarantors shall promptly provide the Borrower with funds sufficient to pay the amount of such Operating Deficit and promptly upon receipt of such funds, the Borrower shall pay the Operating Project Expenses causing such Operating Deficit. Notwithstanding the foregoing, the LHC OCD may submit a request directly to the Guarantors (with a copy of such request to BorrowerOCD), on behalf of the Borrower, to make a payment under this Guaranty upon making a determination of the existence of an Operating Deficit. It is the intention Failure of the parties that in Borrower to provide such a request and/or notice to OCD or the event that Surplus Cash is negative at the end failure of any project fiscal yearGuarantor to pay such Operating Deficit, Guarantors shall fund at least neither impair nor reduce the amount Guarantors’ obligation to pay the amounts due hereunder upon direct demand by OCD. Upon approval of such Surplus Cash deficit pursuant request of the Borrower by OCD, and payment of such Operating Deficit by the Guarantors, the same shall be credited towards the amounts due by Guarantors under this Guaranty. The Operating Deficit Guaranty shall terminate upon the expiration of the Guaranty Period, as approved in writing by OCD; this termination does not, in any way, relieve or affect the Guarantors’ obligations under this Guaranty arising prior to the terms expiration of this Guarantythe Guaranty Period, under any completion guaranty or under any other indemnity or guaranty agreement.