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(a) provide satisfactory evidence to City that Developer has previously paid <br />such excess or otherwise provided for such insufficiency (collectively, the "Excess Cost") with <br />funds from a source other than the NSP Funds; <br />(b) reallocate sufficient funds to pay the Excess Cost from funds <br />allocated to "Contingency" in the Rehabilitation Budget; provided, however, that the <br />City Manager's consent to any such reallocation shall be required; or <br />(c) deposit an amount equal to the Excess Cost in a non-interest bearing <br />account (the "Overrun Account") with City from which withdrawals may be made only with the <br />consent of the City Manager but which will be exhausted prior to any further disbursement for <br />any line item, so that any resulting surplus in any line item of the Rehabilitation Budget will then <br />be reallocated to the line item(s) in which the Excess Costs are expected to be incurred. <br />City shall have no obligation to make further disbursements until Developer has paid or <br />otherwise provided for the overrun as required above. Amounts deposited by Developer in the <br />Overrun Account for any Excess Costs shall be disbursed by City prior to the disbursement of <br />any remaining Rehabilitation Portion proceeds. <br />405. Cost Savings. Upon completion of and disbursement for all matters covered by any <br />line items in the Rehabilitation Budget, any remaining undisbursed amounts allocated to that line <br />item shall be reallocated to "Contingency" and thereafter be available for disbursement in <br />accordance with the terms of this Agreement. <br />406. Retainage. City will withhold a Retainage of 10% from each Disbursement for <br />each of the Hard Cost line items of the Project Cost Breakdown (and other line items thereof <br />designated for withholding of retainage) until all conditions to the final Disbursement of Hard <br />Costs have been satisfied. In lieu of City's withholding Retainage, Developer can by written <br />notice to City elect not to draw any overhead or profit as would otherwise be permitted under the <br />Construction Contract until such time as Retainage would otherwise have been released. <br />City shall not retain funds for building materials purchased by Developer for which Developer <br />supplies documentation to City proving payment in full or for soft costs. <br />407. Holdback. The retainage otherwise available for disbursement shall be <br />subject to a holdback of one hundred twenty-five percent (125%) of the estimated cost (as <br />determined by the City Manager ) for "punch -list" items. Such holdback will be released when <br />all punch -list items have been completed to the satisfaction of City. <br />408. Waiver of Disbursement Conditions. Unless City otherwise agrees in writing, <br />the making by City of any disbursement with knowledge that any condition to such disbursement <br />is not fulfilled shall constitute a waiver of such condition only with respect to the particular <br />disbursement made, and such condition shall be condition to all further disbursements until <br />fulfilled. <br />8 <br />