APPLICATION OF GRANT DISBURSEMENTS. All disbursements shall be held by Grantee in trust and applied by Grantee solely for the Eligible Costs for which the funds have been disbursed (including repayment of Construction Loan proceeds used to pay for Eligible Costs). ▇▇▇▇▇▇▇’s expenditure of Grant funds for (a) costs not set forth in Exhibit D or the Disbursement Request approved by the Committee, or (b) listed Eligible Costs which deviate, by more than ten percent (10%) of the total development budget per Exhibit D, must be pre-approved in writing by the Committee. Use of Grant proceeds without such prior approval shall result in the suspension of subsequent Grant disbursements and may be deemed by the Committee to constitute an Event of Default hereunder. The amount of all ineligible Grant expenditures shall be immediately repaid to the Committee.
Appears in 2 contracts
Sources: Conditional Grant Agreement, Conditional Grant Agreement