Common use of GP LOANS Clause in Contracts

GP LOANS. Wichita GP shall have the right, but not the obligation, to make loans to the Partnership subject to the conditions and on the terms set forth in this Section 5.10 ("GP Loans"). GP Loans shall be on the following terms: (i) the right of Wichita GP to make GP Loans is subject to the condition that Wichita GP shall not be in default in its obligations under this Agreement (including without limitation its obligations under the Construction Guaranty, the Operating Deficit Guaranty and the Tax Credit Compliance Guaranty); (ii) GP Loans shall be used exclusively to fund Operating Deficits and other reasonable and necessary expenses of the Partnership; (iii) interest shall accrue on the Excess GP Loan Amount at an annual interest rate of 12%, compounded annually, and on the balance of the GP Loans at an annual interest rate of 8%, compounded annually; and (iv) GP Loans shall be payable solely at the time, and in the manner and order of priority set forth in Sections 9.1, 9.2, and 9.3 of this Agreement. By making a GP Loan, Wichita GP does not waive, release or modify any claim of, or remedies with respect to a default, if any, by AHF under this Agreement.