Reduction of Gap Financing Loan Clause Samples

Reduction of Gap Financing Loan. Notwithstanding anything to the contrary contained herein or in the Award Agreement, OCD may reduce the principal amounts of the Indebtedness in the event the Cost Certification Audit or the final subsidy layering analysis of the Project completed by OCD discloses that the actual costs incurred by Borrower in the development, restoration, replacement, rehabilitation, and/or construction of the Project were less than the estimated costs for the development, restoration, replacements, rehabilitation, and/or construction of the Project upon which the calculation of the principal amount of the Indebtedness as set forth in the Award Agreement were based. The principal amounts of the Gap Financing Loan may be reduced based on the actual Project costs incurred by Borrower, the amount of GO Zone Tax Credits awarded to the Project, and the final amount, terms and conditions of the Borrower’s Permanent Loan, if any. If the amount of Gap Financing Loan proceeds advanced to Borrower prior to completion of the Cost Certification Audit and final subsidy layering analysis, exceeds the principal amount of the Gap Financing Loan supported by the Cost Certification Audit and final subsidy layering analysis ("Excess Proceeds"), OCD may reduce the amount of the final disbursement, and Borrower shall pay OCD the amount of any remaining Excess Proceeds in one lump sum payment within thirty (30) days of receiving written notice from OCD that the Excess Proceeds are due and payable.