Deficit Financing Clause Samples
The Deficit Financing clause outlines the terms under which a party may cover shortfalls in funding or budgeted amounts during the course of a project or agreement. Typically, this clause specifies who is responsible for providing additional funds if actual costs exceed initial estimates, and may set limits or procedures for requesting and approving such additional financing. Its core practical function is to ensure that projects or obligations can continue smoothly even if unexpected expenses arise, thereby preventing delays or disruptions due to insufficient funds.
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Deficit Financing unless the Board has specifically authorized such procedure, under no circumstances shall the Manager advance funds to the Corporation on a temporary loan basis whether interest is charged to the Corporation or not in the event of a cash deficit occurring in the Corporation’s current account. The Manager shall notify the Board of any anticipated cash deficit and the Board shall take immediate steps to obtain the necessary funds to cover any such deficit pursuant to the By-Laws of the Corporation by either the levying of a special assessment, the delivery of a revised budget, or the exercise of its borrowing authority on behalf of the Corporation.
Deficit Financing. The school corporation will not enter into a contract agreement that would place the district in a position of deficit financing due to a reduction in General Fund revenue or an increase in expenditures when expenditures exceed the current year actual General Fund revenue (IC 20-29-6-3).
Deficit Financing a budget year’s actual expenditures exceeding the employer’s current year actual general fund revenue IC 20-29-6. The time frame for deficit financing should be analyzed using a fiscal year which is consistent with a contract term, which cannot extend past the state budget biennium. The equation is as follows DOE Certification plus miscellaneous revenue minus non-bargaining unit costs/operating expenses equals money available for the total package of the bargaining unit. Total Package – includes but not limited to Salary, FICA, TERF, 401a, Health Insurance Plan, Life Insurance, Long Term Disability, Extra-Duty Costs, Leave Costs, and Retirement. Stipend – one-time payment of a fixed sum of money.