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<br />14 <br /> <br />Agency shall notify the Developer of approval or disapproval of each Draw <br />Request within five (5) Business Days after receipt of the Draw Request, using the <br />Agency's "Disbursement/Change Order Approval Notice". Agency shall have the right, <br />but not the obligation, to discontinue processing Draw Requests unless and until receipt <br />of notification from the other of approval or disapproval of each outstanding Draw <br />Request. <br /> <br />Notwithstanding anything to the contrary set forth herein, to the extent required <br />by the Senior Lender, the Agency agrees to fully disburse the proceeds of the Loan <br />(subject to any applicable retainage as contemplated in Section 6.12 hereof) prior to the <br />disbursement of the Senior Lender. <br /> <br />6.9 Manner of Disbursement. Agency may make any disbursement by <br />check payable to Developer; or by wire transfer to the Escrow Company; or on a voucher <br />basis; or by check payable jointly to Developer and any contractor, subcontractor or other <br />claimant; or directly to any such claimant; or by any other means reasonably selected by <br />Agency. <br /> <br />6.10 Cost Overruns. In the event that, at any time and for any reason, (a) the <br />actual cost reasonably estimated by Agency or Developer to be required to complete all <br />matters included in any line item in the Project Budget exceeds the amount allocated to <br />that line item in the Project Budget, (b) Project costs for any matters not covered by a <br />specific line item have been or will be incurred, or (c) the undisbursed portion of the <br />Loan proceeds and all other approved financing sources are or may be insufficient to pay <br />all construction of the Project that may be payable under the Agency Loan Documents or <br />otherwise in connection with the construction, Developer shall, within ten (10) Business <br />Days after it receives written notice thereof from Agency of any of the foregoing matters, <br />do one or more of the following: <br /> <br />(a) provide satisfactory evidence to Agency that Developer has <br />previously paid such excess or otherwise provided for such insufficiency (collectively, <br />the "Excess Cost") with funds from a source other than the Agency Loan; <br /> <br />(b) reallocate sufficient funds to pay the Excess Cost from funds <br />allocated to "Contingency" in the Project Budget; provided, however, that the City <br />Project Manager's consent to any such reallocation shall be required; or <br /> <br />(c) deposit an amount equal to the Excess Cost in a non-interest <br />bearing account (the "Overrun Account") with the Senior Lender from which withdrawals <br />may be made only with the consent of the City Project Manager but which will be <br />exhausted prior to any further disbursement for any line item, so that any resulting <br />surplus in any line item of the Project Budget will then be reallocated to the line item(s) <br />in which the Excess Costs are expected to be incurred. <br /> <br />Agency shall have no obligation to make further disbursements until Developer <br />has paid or otherwise provided for the overrun as required above. Amounts deposited by <br />Developer in the Overrun Account for any Excess Costs shall be disbursed by the Senior <br />EXHIBIT 3 <br />3-24