Common use of Commitment of Funds Clause in Contracts

Commitment of Funds. Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such a commitment of funds or approval may occur only upon satisfactory completion of the federal environmental review and receipt by the California Tax Credit Allocation Committee (the Committee) of an executed “Authority to Use Grant Funds” (HUD 7015.16) or equivalent letter. The parties further agree that the provision of any funds to the project is conditioned on the Committee’s determination to proceed with, modify or cancel the project based on the results of a subsequent environmental review. The Borrower and it’s contractors are prohibited from undertaking or committing any funds to physical or choice-limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction, or leasing or disposition prior to the execution of the “Authority to Use Grant Funds” (HUD 7015.16) or equivalent letter. Violation of this provision may result in the denial of any funds under the agreement.

Commitment of Funds. Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such a commitment of funds or approval may occur only upon satisfactory completion of the federal environmental review and receipt by the California Tax Credit Allocation Committee (the CommitteeLender) of an executed “Authority to Use Grant Funds” (HUD 7015.16) or equivalent letter. The parties further agree that the provision of any funds to the project is conditioned on the CommitteeLender’s determination to proceed with, modify or cancel the project based on the results of a subsequent environmental review. The Borrower and it’s contractors are prohibited from undertaking or committing any funds to physical or choice-choice- limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction, or leasing or disposition prior to the execution of the “Authority to Use Grant Funds” (HUD 7015.16) or equivalent letter. Violation of this provision may result in the denial of any funds under the agreement.