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. (a) Failure of the Borrower to provide such a request and/or notice to the LHC or the failure of any Guarantor to pay such Operating Deficit, shall neither impair nor reduce the Guarantors’ obligation to pay the amounts due hereunder upon direct demand by the LHC. Upon approval of such request of the Borrower by the LHC, and payment of such Operating Deficit by the Guarantor, the same shall be credited towards the amounts due by Guarantors under this Guaranty. (b) Guarantor acknowledges that any advances made pursuant to Section 3.1 shall be unsecured debt of the Borrower and shall not be payable as an Operating Expense of the Project. (c) The Operating Deficit Guaranty shall terminate upon the expiration of the Operating Deficit Guaranty Period. The termination of the Operating Deficit Guaranty does not, in any way, relieve or affect the Guarantors’ Guaranteed Obligations arising prior to the expiration of the Operating Deficit Guaranty Period, and does not affect Guarantor's Guaranteed Obligations arising under Sections 3.2 and

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 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. (a) Failure of the Borrower to provide such a request and/or notice to the LHC OCD or the failure of any Guarantor to pay such Operating Deficit, shall neither impair nor reduce the Guarantors’ obligation to pay the amounts due hereunder upon direct demand by the LHCOCD. Upon approval of such request of the Borrower by the LHCOCD, and payment of such Operating Deficit by the GuarantorGuarantors, the same shall be credited towards the amounts due by Guarantors under this Guaranty. (b) Guarantor acknowledges that any advances made pursuant to Section 3.1 shall be unsecured debt of the Borrower and shall not be payable as an Operating Expense of the Project. (c) . The Operating Deficit Guaranty shall terminate upon the expiration of the Operating Deficit Guaranty Period. The , as approved in writing by OCD; this termination of the Operating Deficit Guaranty does not, in any way, relieve or affect the Guarantors’ Guaranteed Obligations obligations under this Guaranty arising prior to the expiration of the Operating Deficit Guaranty Period, and does not affect Guarantor's Guaranteed Obligations arising under Sections 3.2 andany completion guaranty or under any other indemnity or guaranty agreement.