Common use of Annual Escalator Clause in Contracts

Annual Escalator. The Canada Funding Agreement will provide for fixed annual increases (“Annual Escalator”) of 5.5% to the prior fiscal year’s Annual Federal Amount (annualized) in fiscal years two (2), three (3), four (4) and five (5) of the Canada Funding Agreement provided that, and during the time that, the NIHB Program is included in the programs transferred to the FNHA pursuant to this Agreement. For any period of time during the above-noted fiscal years that the NIHB Program is not included in the programs transferred to the FNHA, the Canada Funding Agreement will provide for fixed annual increases of 4.5% to the prior year’s Annual Federal Amount (annualized). Canada and the FNHA will commit to negotiate an Annual Escalator for the remaining fiscal years of the Canada Funding Agreement in accordance with subsections CF 3(c) and CF 9(a).