Common use of DEFICIENCIES AND OVERPAYMENTS Clause in Contracts

DEFICIENCIES AND OVERPAYMENTS. If any audit or financial report discloses a deficiency in the reporting of Total Revenues, or any overpayment in Operating Expenses, Fixed Operating Expenses or Management Fees, Managers shall forthwith recalculate Operating Profit, Operating Deficit or Management Fees and pay to the Owners any overpayment or otherwise, together with interest at Manager's sole expense on the amount of deficiency or overpayment, calculated at the Overdue Rate, from the date when such overpayment was made until the date Owners receive return of such overpayment. If any audit conducted for Owners pursuant to the provisions hereof discloses that the Total Revenues for any Operating Year exceed those reported by Managers by more than five percent (5%) or that the full Management Fee or any Accrued Management Fee was overpaid by more than five percent (5%), the Managers at their sole expense (and not as an Operating Expense) shall pay the reasonable cost of such audit and examination. Otherwise, the cost of audits approved by Owners shall be an Operating Expense.