Common use of Contingency Funds Clause in Contracts

Contingency Funds. A construction contingency reserve (“Construction Contingency”) is a line item on the Sources and Uses of Funding Budget and is intended to provide funds in the event of unforeseen costs or required building code corrections. The Construction Contingency will only be available to Borrower upon compliance with the disbursement procedures set forth in Section 3.3. If at any time prior to completion of Project construction, Lender determines that the unused portion of the Construction Contingency is unreasonably low in relation to the amount of work remaining to complete the Project, Lender may restrict or prohibit the use of the remaining portion of the Construction Contingency or require Borrower to make a cash deposit within a specified time period to bring the Construction Contingency up to a reasonable level, as determined by Lender.

Contingency Funds. A construction contingency reserve (“"Construction Contingency”") is a line item on the Sources and Uses of Funding Budget and is intended to provide funds in the event of unforeseen costs or required building code corrections. The Construction Contingency will only be available to Borrower upon compliance with the disbursement procedures set forth in Section 3.3. If at any time prior to completion of Project construction, Lender determines that the unused portion of the Construction Contingency is unreasonably low in relation to the amount of work remaining to complete the Project, Lender may restrict or prohibit the use of the remaining portion of the Construction Contingency or require Borrower to make a cash deposit within a specified time period to bring the Construction Contingency up to a reasonable level, as determined by Lender.