55A - AGMT LEGACY APARTMENTS - Laserfiche WebLink

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received any payment for work performed, and (b) all other documents and information reasonably required by City. Draw Requests shall be submitted no less than ten (10) Business Days prior to the date of the requested draw, and shall not be submitted more often than monthly. City shall notify the Developer of approval or disapproval of each Draw Request within five (5) Business Days after receipt of the Draw Request, using the City's "Disbursement/Change Order Approval Notice". City shall have the right, but not the obligation, to discontinue processing Draw Requests unless and until receipt of notification from the other lenders of approval or disapproval of each outstanding Draw Request. 6.8 Cost Overruns. In the event that, at any time and for any reason, (a) the actual cost reasonably estimated by Developer to be required to complete all matters included in any line item in the Project Budget exceeds the amount allocated to that line item in the Project Budget, (b) Project Costs for any matters not covered by a specific line item have been or will be incurred, or (c) the undisbursed portion of the Loan Proceeds and all other approved financing sources are or may be insufficient to pay all construction of the Project that may be payable under the Inclusionary Loan Documents or otherwise in connection with the construction, Developer shall, within ten (10) days after it receives written notice thereof from City of any of the foregoing matters, do one or more of the following: (a) provide satisfactory evidence to City that Developer has previously paid such excess or otherwise provided for such insufficiency (collectively, the "Excess Cost") with finds from a source other than the Inclusionary Loan; (b) deposit an amount equal to the Excess Cost in a non -interest bearing account (the "Overrun Account") with City from which withdrawals may be made only with the consent of the City Project Manager (such consent not to be unreasonably withheld) but which will be exhausted prior to any ftuther Draw Request for any line item, so that any resulting surplus in any line item of the Project Budget will then be reallocated to the line item(s) in which the Excess Costs are expected to be incurred. City shall have no obligation to approve Draw Requests until Developer has paid or otherwise provided for the overrun as required above. 6.9 Cost Savings. Upon completion of and disbursement for all matters covered by any line items in the Project Budget, any remaining undisbursed amounts allocated to that line item shall be reallocated to "Contingency" and thereafter be available for disbursement in accordance with the terms of this Agreement. 6.10 Retainage. City will withhold a Retainage of 10% from the Disbursement associated with Hard Costs in the Project Cost Breakdown (and other line items thereof designated for withholding of retainage) until all conditions to the final Disbursement of Hard Costs have been satisfied. In lieu of City's withholding Retainage, Developer can by written notice to City elect not to draw any overhead or profit as would otherwise be permitted under the Construction Contract until such time as Retainage would otherwise have been released. 55A-26