Common use of Operating Deficit Guaranty Clause in Contracts

Operating Deficit Guaranty. Each accepted Guarantor will be required under the terms and conditions contained in the Operating Deficit Guaranty to fund annual operating deficits until the Project has generated Surplus Cash for two (2) consecutive fiscal years. The Operating Deficit Guaranty shall guarantee the reimbursement of deficits beginning from the date the Project begins operations. The annual operating deficit shall be fully paid and funded by the Guarantor(s) under the Operating Deficit Guaranty on or before the date on which annual audited financial statements for the Project are due to Grantee under the Loan Agreement.