Common use of Reduction of Gap Financing Loan Clause in Contracts

Reduction of Gap Financing Loan. Notwithstanding anything to the contrary contained herein, LHC may reduce the principal amount of the Gap Financing Loan in the event the Cost Certification Audit or the final subsidy layering analysis of the Project completed by LHC discloses that the actual costs incurred by Applicant in the development, restoration, replacement, rehabilitation, and/or construction of the Project were less than the estimated costs for the development, restoration, replacements, rehabilitation, and/or construction of the Project upon which the calculation of the principal amount of the Indebtedness as set forth in the Award Agreement were based. The principal amounts of the Gap Financing Loan may be reduced based on the actual Project costs incurred by Applicant, the amount of Tax Credits awarded to the Project, and the final amount, terms and conditions of the Applicant’s other financing, if any. If the amount of Gap Financing Loan proceeds advanced to Applicant prior to completion of the Cost Certification Audit and final subsidy layering analysis, exceeds the principal amount of the Gap Financing Loan supported by the Cost Certification Audit and final subsidy layering analysis (“Excess Proceeds”), LHC may reduce the amount of the final disbursement, and Applicant shall pay LHC the amount of any remaining Excess Proceeds in one lump sum payment within thirty (30) days of receiving written notice from LHC that the Excess Proceeds are due and payable. Failure to remit LHC-determined Excess Proceeds in the timeframe stipulated shall be an Event of Default under the Loan Agreement.

Reduction of Gap Financing Loan. Notwithstanding anything to the contrary contained hereinherein or in the Award Agreement, LHC OCD may reduce the principal amount amounts of the Gap Financing Loan Indebtedness in the event the Cost Certification Audit or the final subsidy layering analysis of the Project completed by LHC OCD discloses that the actual costs incurred by Applicant Borrower in the development, restoration, replacement, rehabilitation, and/or construction of the Project were less than the estimated costs for the development, restoration, replacements, rehabilitation, and/or construction of the Project upon which the calculation of the principal amount of the Indebtedness as set forth in the Award Agreement were based. The principal amounts of the Gap Financing Loan may be reduced based on the actual Project costs incurred by ApplicantBorrower, the amount of GO Zone Tax Credits awarded to the Project, and the final amount, terms and conditions of the ApplicantBorrower’s other financingPermanent Loan, if any. If the amount of Gap Financing Loan proceeds advanced to Applicant Borrower prior to completion of the Cost Certification Audit and final subsidy layering analysis, exceeds the principal amount of the Gap Financing Loan supported by the Cost Certification Audit and final subsidy layering analysis (“"Excess Proceeds”"), LHC OCD may reduce the amount of the final disbursement, and Applicant Borrower shall pay LHC OCD the amount of any remaining Excess Proceeds in one lump sum payment within thirty (30) days of receiving written notice from LHC OCD that the Excess Proceeds are due and payable. Failure to remit LHC-determined Excess Proceeds in the timeframe stipulated shall be an Event of Default under the Loan Agreement.

Reduction of Gap Financing Loan. Notwithstanding anything to the contrary contained hereinherein or in the Award Agreement, LHC may reduce the principal awarded amount of the Gap Financing Loan in the event the Cost Certification Audit or the final subsidy layering analysis of the Project completed by LHC discloses that the actual costs incurred by Applicant Borrower in the development, restoration, replacement, rehabilitation, and/or construction of the Project were less than the estimated costs for the development, restoration, replacements, rehabilitation, and/or construction of the Project upon which the calculation of the principal amount of the Indebtedness Gap Financing Loan as set forth in the Award Agreement were based. The principal amounts of the Gap Financing Loan may be reduced based on the actual Project costs incurred by ApplicantBorrower, the amount of Tax Credits any tax credits awarded to the Project, and the final amount, terms and conditions of the Applicant’s other Senior Loan, any subordinate financing, if anyand other funds received or to be received by the Borrower and related to the Project. If the amount of Gap Financing Loan proceeds advanced to Applicant Borrower prior to completion of the Cost Certification Audit and final subsidy layering analysis, exceeds the principal amount of the Gap Financing Loan supported by the Cost Certification Audit and final subsidy layering analysis (“"Excess Proceeds”"), LHC may reduce the amount of the final disbursement, and Applicant Borrower shall pay LHC the amount of any remaining Excess Proceeds in one lump sum payment within thirty (30) days of receiving written notice from LHC that the Excess Proceeds are due and payable. Failure to remit LHC-determined Excess Proceeds in the timeframe stipulated shall be an Event of Default under the Loan Agreement.