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contractor, subcontractor or other claimant; or directly to any such claimant; or by any other means <br />reasonably selected by Agency/City. <br />609. Cost Overruns. In the event that, at any time and for any reason, (a) the actual cost <br />reasonably estimated by Agency/City or Developer to be required to complete all matters included in <br />any line item in Che Project Budget exceeds the amount allocated to that line item in the Project <br />Budget, (b) Project Costs for any matters not covered by a specific line item have been or will be <br />incurred, or (e) the undisbursed portion of the proceeds of the Loans is or may be insufficient to pay <br />all Project Costs for construction of the hnprovements that may be payable under the Agency/City <br />Loan Documents or otherwise in connection with the conslructgu;<'Developer shall, within ten (10) <br />days after it receives written notice thereof from Agency/City ofairy of the foregoing matters, do one <br />or mare of the following: <br />(a) provide salisiactory~eu~ylence to Agenc;~/City that Developer has <br />previously paid such excess Project Costs or otlle£wrs`e~provided for sueh'insufficiency (collectively, <br />the "Excess Cost") with fiords from a source other than the Agency/City Loan;-; <br />(b) reallocate sufficient funds to ;pay the Excess host from fiords <br />allocated to "Contingency" in the Project Budget; piro~rded, hgwever, that the Executive llirector's <br />consent to any such reallocation shall be required; or <br />(c) deposit an jtnount equal to the 1;~xGess Cost in anon-interest bearing <br />account ("Overrun Account'), with Agency/city fronf~vhiclr withdrawals may be made only with the <br />consent of the Executive ~ireetor but which` Wzll be o~Ck}austed,prior to'any further disbursement for <br />any line item, so that a~jy resulting;surplus in an~7irie item<ofthe Project Budget wIll then be <br />reallocated to the line items) iu whicli';the ExceS~,Costs are expedled to be incurred. <br />/"h^. <br />Agency/City shall have rro obhgatian to mal~e,,further disbursements under the Loans until <br />Developer .has paid or, otherwise~,provided~for all ~EXeess Costs as required above. Amounts <br />deposite.'tl by Developer, ,in the'Ouerrun Accoun"t:,.for any Excess Costs shall be disbursed by <br />Agency/Cjty prior to the distiiyrsementnf any remaining Agency Loan or City Loan proceeds in the <br />manner de'sc'ribed in subdivisign (c), above,,, <br />610. `Colt Savings 5ublect to Section 609, upon completion of and disbursement for all <br />matters covered by ~agy hnc rt~4S in the Project Budget, any remaining undisbursed amounts <br />allocated to that Iina~lem shall'.~};e retained by the City, with a corresponding reduction in the <br />principal amount of the Loans <br />611. Retainage. `"Agency/City will withhold a "Retainage" of 10% from each <br />Disbursement for each of the hard cost line items of the Project Cost breakdown (and other line items <br />thereof designated far withholding of retainage) set forth in the Project Budget until all conditions to <br />the final disbursement of proceeds of the Loans have been satisfied. In lieu of Agency/City's <br />withholding the Retainage, Developer can by written notice to Agency/City elect not to draw any <br />overhead m' profit (in an amount not less than the full Retainage) as would otherwise be permitted <br />under the Construction Contract until such time as Retainage would otherwise have been released. <br />Agency/City shall not retain funds for building materials purchased by Developer or for soft <br />costs of construction for which Developer supplies documentation to Agency/City that Developer has <br />provided payment in full. <br />26 <br />