Common use of Reduced Funding Clause in Contracts

Reduced Funding. If a HCP Customer receives a funding commitment from federal universal service support mechanisms that is reduced as a result of demand in any funding year that exceeds a funding cap imposed by the FCC, then, if Alaska Communications does not exercise its rights under Section 24(f), to the extent permitted under FCC rules and policies without jeopardizing any existing funding commitment from such mechanisms to Customer, Alaska Communications may, in its own sole discretion, suspend its efforts to collect the amount of such reduction from Customer for so long as, and only to the extent that: (i) payment by the Customer of the amount of such reduction would cause severe economic hardship for Customer and a full or partial payment plan would be impracticable under the circumstances (both as demonstrated by Customer to Alaska Communications’ satisfaction); (ii) Customer is otherwise in compliance with this Agreement, including full payment of the customer’s share of the cost of the Services had the support not been reduced, and all applicable rules, regulations, policies, and procedures governing the federal universal service support mechanisms; and (iii) Customer is making reasonable efforts to secure additional funding from USAC and other sources to enable payment of the reduction amount.