Common use of Owner’s Contingency Clause in Contracts

Owner’s Contingency. The parties acknowledge that each Project Budget shall contain an owner's contingency (an "Owner's Contingency") equal to no less than 2% of Project hard and soft costs contained within the Project Budget. Provided no Default exists hereunder, the Owner's Contingency for a Project shall be disbursed by Atlantic to the subject Borrower to cover unanticipated Project costs, costs associated with change orders and hard and soft cost overruns (before such Borrower or Homestead, as guarantor under the Completion and Payment Guaranty, shall be required to cover such additional costs pursuant to the provisions of Section 6.6 hereinbelow or the Completion and Payment Guaranty) as and when such payments are due and payable. Requests for disbursement of portions of the Owner's Contingency shall be made with Homestead's monthly requests for advance of Loan proceeds. Upon the occurrence of a Default hereunder, Atlantic shall have no obligation to advance any portion of the Owner's Contingency until such Default is cured. Upon the occurrence of an Event of Default, Atlantic may apply the Owner's Contingency against any of the obligations secured by the Security Documents as Atlantic sees fit, or at Atlantic's option, to the completion of any incomplete Improvements.

Owner’s Contingency. The parties acknowledge that each Project Budget shall contain an owner's contingency (an "Owner's Contingency") equal to no less than 2% of Project hard and soft costs contained within the Project Budget. Provided no Default exists hereunder, the Owner's Contingency for a Project shall be disbursed by Atlantic PTR to the subject Borrower to cover unanticipated Project costs, costs associated with change orders and hard and soft cost overruns (before such Borrower or Homestead, as guarantor under the Completion and Payment Guaranty, shall be required to cover such additional costs pursuant to the provisions of Section 6.6 hereinbelow or the Completion and Payment Guaranty) as and when such payments are due and payable. Requests for disbursement of portions of the Owner's Contingency shall be made with Homestead's monthly requests for advance of Loan proceeds. Upon the occurrence of a Default hereunder, Atlantic PTR shall have no obligation to advance any portion of the Owner's Contingency until such Default is cured. Upon the occurrence of an Event of Default, Atlantic PTR may apply the Owner's Contingency against any of the obligations secured by the Security Documents as Atlantic PTR sees fit, or at AtlanticPTR's option, to the completion of any incomplete Improvements.

Owner’s Contingency. The parties acknowledge that each Project Budget shall contain an owner's contingency (an "Owner's Contingency") ------------------- equal to no less than 2% of Project hard and soft costs contained within the Project Budget. Provided no Default exists hereunder, the Owner's Contingency for a Project shall be disbursed by Atlantic PTR to the subject Borrower to cover unanticipated Project costs, costs associated with change orders and hard and soft cost overruns (before such Borrower or Homestead, as guarantor under the Completion and Payment Guaranty, shall be required to cover such additional costs pursuant to the provisions of Section 6.6 hereinbelow or the Completion ----------- and Payment Guaranty) as and when such payments are due and payable. Requests for disbursement of portions of the Owner's Contingency shall be made with Homestead's monthly requests for advance of Loan proceeds. Upon the occurrence of a Default hereunder, Atlantic PTR shall have no obligation to advance any portion of the Owner's Contingency until such Default is cured. Upon the occurrence of an Event of Default, Atlantic PTR may apply the Owner's Contingency against any of the obligations secured by the Security Documents as Atlantic PTR sees fit, or at AtlanticPTR's option, to the completion of any incomplete Improvements.