Common use of Authorization for Expenditure Clause in Contracts

Authorization for Expenditure. Within five (5) days after the Borrower receives an Authorization for Expenditure, the Borrower will provide to the Lender a copy of the Authorization for Expenditure and all documents and materials relating to it. The Borrower will elect timely to participate with respect to an Authorization for Expenditure, except where (x) it would not be prudent to do so and the Borrower promptly gives written notice to the Lender that the Borrower is not doing so or (y) unless, at least five (5) days prior to the deadline to make the election, the Borrower has requested in writing to the Lender the Lender’s consent to the Borrower’s electing not to participate and the Lender has so consented. The Borrower will comply with all of the Borrower’s requirements with respect to an Authorization for Expenditure so as to maintain all of the Borrower’s rights under the Authorization for Expenditure in full force and effect unless the Borrower is contesting a requirement in good faith by appropriate action and for which adequate reserves are being maintained in accordance with GAAP and promptly gave the Lender written notice to the Lender that the Borrower would be contesting.