Common use of Principal Forgiveness Clause in Contracts

Principal Forgiveness. Certain loans may be awarded principal forgiveness if the project will return a non compliant public water supply system to compliance with MCL requirements. The amount of principal forgiveness is estimated on the repayment schedule found on B-2 and will be finalized when the loan agreement is amended to reflect the final costs of the project. The principal forgiveness will be provided on the date of the final loan disbursement. KDHE reserves the right to increase the principal forgiveness as needed to meet requirements of Public Law 111-88. The principal forgiveness amount will be calculated at 30% of the final loan amount associated with the qualifying portion of project that returns the public water supply system to compliance with MCL requirements. The standard conditions applicable to the Loan are:

Principal Forgiveness. Certain loans may be awarded principal forgiveness if the project will return a non compliant public water supply system to compliance with MCL requirements. The amount of principal forgiveness is estimated on the repayment schedule found on B-2 and will be finalized when the loan agreement is amended to reflect the final costs of the project. The principal forgiveness will be provided on the date of the final loan disbursement. KDHE reserves the right to increase the principal forgiveness as needed to meet requirements of Public Law 111-88. The principal forgiveness amount will be calculated at 30% of the final loan amount associated with the qualifying portion of project that returns the public water supply system to compliance with MCL requirements. The standard conditions applicable to the Loan Agreement are: