Payment for Authorized Improvement Clause Samples

Payment for Authorized Improvement. (a) Upon receipt of a reviewed and approved Certification for Payment, as evidenced by the signature of the City Manager, the City shall, on a monthly basis, make payment from available funds in the Construction Fund pursuant to the terms of the Certification for Payment in an amount not to exceed the Budgeted Cost, except as provided for in Section 4.04. (b) Notwithstanding any other provisions of this Agreement, the City shall make payment directly to the person or entity specified by the Developer in an approved Certification for Payment, including: (1) a general contractor or supplier of materials or services or jointly to the Developer (or any permitted assignee of the Developer) and the general contractor or supplier of materials or services, as indicated in an approved Certification for Payment; (2) to the Developer or any assignee of the Developer if an unconditional lien release is attached to such Certification for Payment, and, (3) to the Developer, or to the third party contractor directly, at the Developer’s request as specified in the Certification for Payment, if the Developer provides a general contractor’s or supplier of materials’ unconditional lien release for the portion of the work covered by the Certification for Payment. Neither the City, City Council, City Manager, City Engineering Consultant nor Inspector shall have any liability for relying on the accuracy of the payee information in any Certification for Payment as presented by the Developer or its assignees. (c) Should the amount of money available in the Debt Service Fund and Debt Reserve Fund be insufficient to cover the City’s annual debt service payments on the COs, the City may use any and all amounts in the Construction Fund to make any required annual debt service payments. The Developer agrees that the City will offset from the initial payment made to the Developer for the Authorized Improvements the amount required to initially fund the Debt Reserve Fund, as set forth in Section 3.01.