AGGREGATE AMOUNT OF ADVANCES
UNDER THE BUILDING LOAN AGREEMENT TO EXCEED THE BUILDING LOAN AMOUNT.
SECTION 3.06
INSUFFICIENCY OF LOAN
PROCEEDS.
NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, IF AT ANY
TIME OR FROM TIME TO TIME DURING THE TERM OF THIS AGREEMENT, IN AGENT'S
REASONABLE JUDGMENT (A) THE AMOUNT OF ANY LINE ITEM IN EITHER BUDGET WILL BE
INSUFFICIENT TO COVER THE COSTS OF SUCH LINE ITEM (AFTER GIVING EFFECT TO ANY
COST SAVINGS REALIZED UNDER SECTION 7.11, ANY COMPLETION DEPOSIT OR PORTION
THEREOF OR ANY "COMPLETION DEPOSIT" UNDER AND AS DEFINED IN THE BUILDING LOAN
AGREEMENT OR PORTION THEREOF NOT BEING CREDITED FOR PURPOSES OF THIS CLAUSE (A)
TO ANOTHER LINE ITEM, OR ANY OTHER OTHER FUNDS) AND/OR (B) EITHER OF THE BUDGETS
IS NOT IN BALANCE (AS DEFINED BELOW), THEN NO FURTHER ADVANCES OR "ADVANCES" (AS
DEFINED IN THE BUILDING LOAN AGREEMENT) SHALL BE MADE UNTIL BORROWER EITHER (I)
DEPOSITS THE AMOUNT OF SUCH DEFICIENCY (THE "COMPLETION DEPOSIT") WITH AGENT, IN
CASH, OR BY MEANS OF OTHER SECURITY IN FORM, SUBSTANCE AND AMOUNT REASONABLY
SATISFACTORY TO AGENT, (II) TO THE EXTENT PERMITTED UNDER SECTION 3.03 HEREOF
AND SECTION 3.03 OF THE BUILDING LOAN AGREEMENT, ALLOCATES A PORTION OF AN
APPLICABLE PROJECT LOAN CONTINGENCY OR "BUILDING LOAN CONTINGENCY" (AS DEFINED
IN THE BUILDING LOAN AGREEMENT) TO SUCH INSUFFICIENCY, AND/OR (III) TO THE
EXTENT PERMITTED UNDER SECTION 7.11 HEREOF AND SECTION 7.11 OF THE BUILDING LOAN
AGREEMENT, REALLOCATES COST SAVINGS WITHIN THE APPLICABLE BUDGET TO OFFSET SUCH
DEFICIENCY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT AND THE BUILDING LOAN
AGREEMENT.
"IN BALANCE" SHALL MEAN THAT THE SUM OF (1) THE APPLICABLE MAXIMUM
AMOUNT PLUS (2) ALL AMOUNTS IN THE COLLECTION ACCOUNTS ATTRIBUTABLE TO A
PERMITTED LEASE WHOSE DEMISED PREMISES ARE IN THE APPLICABLE UNITS, AND (3) THE
BALANCE OF ANY MONIES IN ANY COMPLETION DEPOSIT, BORROWER LC DEPOSIT OR
"COMPLETION DEPOSIT" OR "BORROWER
38
LC DEPOSIT" (AS SUCH TERMS ARE DEFINED IN THE BUILDING LOAN AGREEMENT),
PREVIOUSLY MADE WITH RESPECT TO THE APPLICABLE BUDGET, IS SUFFICIENT TO MEET ALL
REMAINING BUILDING LOAN COSTS AND PROJECT LOAN COSTS SHOWN IN THE APPLICABLE
BUDGET (SUBJECT TO SECTION 4.02(E)(9) HEREOF).
PORTIONS OF ANY COMPLETION
DEPOSIT OR ANY "COMPLETION DEPOSIT" (AS DEFINED IN THE BUILDING LOAN AGREEMENT)
(INCLUDING, IN EACH CASE, ANY INTEREST EARNED THEREON) HELD BY AGENT WITH
RESPECT TO EITHER BUDGET SHALL BE APPLIED TO PROJECT LOAN COSTS OR BUILDING LOAN
COSTS SIMULTANEOUSLY WITH THE MAKING OF THE IMMEDIATELY SUCCEEDING ADVANCE AS
OTHER FUNDS, BUT ONLY UPON SATISFACTION OF THE TERMS APPLICABLE TO THE MAKING OF
ADVANCES SET FORTH IN THIS AGREEMENT AND IN THE OTHER PROJECT LOAN DOCUMENTS (IF
SUCH ADVANCE RELATES TO PROJECT LOAN COSTS) OR THE TERMS APPLICABLE TO THE
MAKING OF ADVANCES SET FORTH IN THE BUILDING LOAN AGREEMENT AND THE OTHER
BUILDING LOAN DOCUMENTS (IF SUCH ADVANCE RELATES TO BUILDING LOAN COSTS) (BUT NO
SUCH RELEASE OR APPLICATION SHALL BE DEEMED TO BE AN ADVANCE OF PROJECT LOAN
PROCEEDS HEREUNDER OR BUILDING LOAN PROCEEDS